Mortgage Loan Fraud Schemes

Course Description

Seat Time: 2hrs - Desc:

This course will provide a comprehensive overview of individual mortgage loan fraud schemes. The learner will be exposed to identity theft, equity skimming, property flipping, silent seconds, and more. After completing this course, the learner will be able to:

• Identify and differentiate between various types of mortgage loan fraud schemes.
• Implement procedures and policies for preventing, detecting, and reporting mortgage loan fraud schemes.
• Understand the role of various regulatory agencies in preventing mortgage loan fraud schemes.

Course Topics

T1. Mortgage Fraud and Identity theft: This topic will provide the learner with an introduction to the mortgage lending process, addressing such areas as origination, processing, and documentation, among others.

T2. Equity Skimming: This topic will examine equity skimming, a form of mortgage loan fraud which preys on desperate homeowners, and will identify predatory lending practices, and advice for customers in compromised situations.

T3. Property Flipping: This topic will illustrate property flipping, the practice of buying and reselling property at an inflated price, and will provide details describing property flippers, flipping scams, and key red flags.

T4. Silent Seconds: This topic will instruct the learner on identifying silent seconds scams, and will provide the learner with details to help them recognize red flags and protect customers.

T5. Foreclosures: This topic will introduce the learner to foreclosure scams, which involve homeowners who are at risk of defaulting on their mortgages, and will identify types of foreclosure scams and key red flags by studying real-life examples.

T6. Straw Buyers: This topic will clarify straw buyers, also known as "nominees", how and when they are used, and how perpetrators commit the crime, while also providing details on air loans, red flags, and real-life examples for study.

T7. Application Misrepresentation: This topic will offer a discussion on application misrepresentation as a form of mortgage loan fraud, and will provide a detailed explanation of the many forms that exist, including funds, gift funds, credit, sales agreement, and more.

T8. Other Types of Fraud: This topic will introduce the learner to more types of fraud, such as lottery and telephone fraud, that s/he may encounter on the job so that s/he understands how to identify such fraud.