Fraud

Mortgage fraud is an industry-wide problem requiring an industry-wide response. CMHC is committed to leading industry-wide efforts to reduce mortgage loan fraud.

CMHC's approach reflects the premise that, although lenders have a key responsibility for fraud prevention, fraud will be reduced most effectively by CMHC working cooperatively with lenders, and not by penalizing them at claim stage. Accordingly CMHC's pays 100% of eligible costs on all emili claims, the only exception being instances of fraud where the lender or their staff are involved.

CMHC works with its Approved Lender clients to manage fraud prevention through its Lender Quality Assurance (QA) Framework. When issues are identified, CMHC works together with Approved Lenders to identify systematic solutions that mitigate fraud throughout their portfolio.

CMHC has consistently been a leader in the fight against mortgage fraud and has proactively worked with lenders and the mortgage industry to prevent fraud at initiation. This includes helping lenders enhance their internal fraud management programs through a variety of initiatives. For example:

• CMHC has a national lender fraud training and awareness program in place. CMHC is able to reach a wide audience and is able to include the most recent fraud trends and patterns to assist those on the front line to detect fraud.
• CMHC publishes research on behalf of the industry. For example, CMHC has funded research on land title fraud and is currently funding research on the damage sustained by homes used as marijuana growing operations.
• CMHC provides information to its lender clients on the nature of mortgage fraud and what initiation procedures are most effective at fraud detection and prevention.
• CMHC has an excellent relationship with law enforcement and reports cases of suspected fraud to the appropriate law enforcement agencies. CMHC pursues prosecution to the full extent of the law and strongly encourages its lenders to do the same.

Notification

Approved Lenders are required to immediately report all instances of suspected fraud/misrepresentation to CMHC as soon as they become aware. This information is used to understand the nature of fraud and to develop tools and training aimed at fraud/misrepresentation prevention.

Approved lenders should notify CMHC via e-mail or fax using form CMHC 3092 "Advice of fraudulent/False/Misleading Loan — Information". Email fraud@cmhc.ca for your electronic copy of the form or email the CMHC account number as well as a brief description of the suspected fraud/misrepresentation.

Notices sent by fax should be sent to (613) 748-2783. All supporting information and documentation is to be retained on file and made available to CMHC upon request.

Lender Fraud Training and Awareness

CMHC offers Lender Fraud Training and Awareness on request. Contact your CMHC Business Development Officer to discuss your requirements further.

Contact Us

If you require further information pertaining to reporting suspected fraud or misrepresentation, please email fraud@cmhc.ca or call 1 866 358-9999 and ask for CMHC's Senior Advisor Fraud.