Lake Forest, California-based lender American Guardian Home Loans says its subprime department has launched an initiative to fight against mortgage fraud and unscrupulous brokers in the marketplace.

The lender, which specializes in Alt-A and subprime loans, believes a significant portion of the recent subprime crises resulted from fraudulent broker practices that include falsifying appraisals, property information, borrower tax returns, bank statements, pay stubs, and W2 forms.
“We conduct business in 10 states and so far not one of our legitimate borrowers has defaulted on their loan,” said Kamran Khosravi, president of American Guardian Home Loans. “What we have experienced are brokers committing fraud and borrowers defaulting on those loans. This kind of conduct stems from borrowers that are obviously unable to meet their mortgage commitments because the criminal broker inflated their asset and income to falsely qualify the borrower. Therefore, the unwitting lender and borrower fall victim to the unscrupulous greed of the criminal broker.”
As part of its fight against fraud, American Guardian Home Loans says it’s working alongside law enforcement officials to fight fraud, while also conducting more internal research on prospective brokers and sharing information on fraudulent brokers with lenders and law enforcement agencies.