HousingWire Daily DaylightAML CEO Bob Simpson on mortgage occupancy fraud
Aug 28, 2025
Bob Simpson, CEO of DaylightAML and a mortgage fraud expert, discusses the intricacies of mortgage occupancy fraud. He highlights how different perceptions between the industry and the public impact fraud classification. Specific high-profile cases from the Trump era illustrate the motivations behind misrepresentation. Simpson also emphasizes the critical role of post-closing quality control and the potential of AI in uncovering fraud. Through a compelling personal story, he sheds light on the long-lasting consequences of deceit for both borrowers and lenders.
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Occupancy Fraud Perception Varies
- Occupancy misrepresentation is treated differently across courts and contexts and can be seen as minor by some judges.
- Bob Simpson warns that occupancy issues vary in severity and public perception compared to other mortgage crimes.
Prioritize Intent At Closing
- Examine the borrower's intent on the day they closed the loan to assess occupancy fraud.
- Investigate post-closing actions like immediate short-term rental listings as strong red flags.
Use Servicing Notes As Evidence
- Check servicing notes for borrower admissions because callers often confess to misrepresentations.
- Use these notes as concrete leads during special investigations into occupancy or other misreps.