The CRA held a roundtable with the Mortgage Industry Association (Nortgage Industry Association) in late 2024, including banks, credit unions, insurance companies, brokers and alternative lenders, and received more than 1,600 responses to online questionnaires. This is the assurance in the federal government’s guarantee in the 2024 budget to explore the CRA-led revenue verification tool as a way to combat mortgage fraud.
Participants have been concerned about the increase in fraud, especially the use of fake or altered documents to inflate revenue.
“Participants are aware that the tools created by the CRA allow mortgage professionals to verify the effectiveness of borrower income will simplify the mortgage approval process and significantly reduce the risk of fraud,” the CRA said in its report.
Industry wants real-time data, not yes/no answers
69% of industry members surveyed said they knew about fraud trends in the mortgage sector, citing fake documents as the most pressing issue. Other concerns include laundering funds through mortgage transactions, exaggerating income to qualify for larger loans, and fraud from within the industry itself.
Credits and brokers currently use multiple sources to verify income, including employment letters, bank statements and tax documents issued by the CRA. One of the most common documents is the T4 order, assessment notice and profit and loss statement proof. Some also require a complete T1 tax return from the borrower, especially if it involves self-employed or rental income.
“Participants confirm that the current income verification process requires brokers, lenders, underwriters and insurers to take multiple steps to verify the borrower’s identity and documents,” the report said.
The CRA notes that most industry professionals want to access real-time revenue data through APIs or secure CRA portals and integrate with the staking initiation platform. This will allow professionals to retrieve verified revenue information with the borrower’s consent, speeding up transactions and reducing manual processing, they said.
According to the CRA, “the most common recommendation is to use a new or existing CRA portal that will allow mortgage professionals to obtain information under the authorization of the borrower.” Participants also stressed the need for a digital tool that is consistent with the pace of origin of mortgage loans, adding: “The response of the tool should be provided in real time to align with the industry’s digital solutions and transaction speeds.”
Many in the industry say that the simple “yes” or “no” of CRA won’t cut it. Nearly half of respondents (47%) believed that this reaction did not provide them with the details needed to properly evaluate borrower income.
The report states: “Participants explained that yes/no verification income would be insufficient because it lacks the details needed to fully verify the documents and has a full view of the borrower’s financial situation.” Lenders also need to understand which sources contribute to total income, such as employment, business income or government transfers, and whether the borrower has outstanding debt to the CRA.
CRA survey data shows that 84% of industry respondents said they require the borrower’s total income (line 15,000), while 74% of cited names, 62% of net income (line 23,600) and 54% of taxable income (line 26,000) as minimum requirements.
Some participants warned that even a few inconsistencies could trigger a false “no” response. “The consequences of false negatives may affect,” the CRA said, adding that delays could harm the purchase of a home and damage the relationship between the borrower and the broker.
Fraud costs are high; support for paid models grows
Most participants said the tool should provide a record of income for at least two years, with some of the recommendations recommending up to five years, especially for borrowers with variables or self-employed income. They also highlighted the importance of security measures, including two-factor authentication, borrower notification and audit mechanisms to detect unauthorized access.
To ensure accessibility, participants said the CRA must also consider borrowers who do not have an online account or who live in rural areas. “The accessibility of the tool should take into account financial institutions with limited resources,” the report added, noting that smaller lenders may not be able to integrate directly and may require independent interfaces.
The CRA also explores cost and adoption issues. According to Canadian mortgage professionals, every fraud that the lender needs $4 to recover. ”’
Several participants said they have paid for third-party services and are willing to contribute to the cost of CRA tools, whether through subscriptions, paid models or annual access fees.
While some say they would not only rely on CRA verification but rather continue to verify employment and support documents, they agree that a centralized income verification system will become a widely used tool, especially if it can confirm the authenticity of tax documents and reduce turnaround time.
“The CRA carefully reviewed the feedback from participants and will use it to make decisions about the potential design and implementation of the new tool,” the agency said. It also plans to hear from borrowers next to it to ensure their needs and concerns are part of the process.
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Last modified: July 15, 2025
