How can income misrepresentation still be a problem in the mortgage industry?

More homebuyers misrepresent their income on mortgage applications - study 

April 5, 2019 – Data from First American Financial Corporation’s Loan Application Defect Index for February 2019:

“Fraud can come in many forms, but income falsification remains one of the most likely misrepresentations,” said Mark Fleming, chief economist at First American. “By December 2018, income-specific loan risk had increased 12% compared with one year ago. However, income risk has remained flat in 2019, begging the question: what drives income misrepresentation?”

There are many motives that drive bad actors to misrepresent income.  The real question is how can a lender permit income misrepresentation to occur in an age where income and employment verification services that stop this type of behavior dead in its tracks are easily procured. Industry leading Verification Services providers can be found on Vendor Surf:

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