7 strategies for preventing costly HELOC loan fraud exposures

Over the years, the industry has seen an increase in wire fraud involving funds disbursed from a home equity line of credit (HELOC) loan. The HELOC loan fraud exposures can involve various paths from which the bad guys attack, and can result in losses upwards of $500,000.

To help manage these HELOC risks, each part of a loan program should be evaluated for potential weak points through which a fraudster can enter. This includes reviewing how HELOC funds are disbursed, how borrowers can obtain an available line of credit, and how HELOC loan payments can be made to the financial instutition.

Fraudsters continue to seek out weaknesses for stealing HELOC loan funds, so it is important to understand where these weaknesses may exist and put the right precuations in place to protect against any potential exposure.


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