Source · Select Committees · Public Accounts Committee
Recommendation 30
30
BBLS 100% guarantee reduces lender incentive for fraud recovery efforts
Conclusion
The Department explained that the first and primary responsibility for chasing fraud remains with the lenders. Due to the 100% guarantee provided to lenders under the BBLS, the incentive is not there to recover fraudulent loans. The Department has, however, worked with lenders to recoup some of the losses.49