AL 3.0 hours Good Guys/Bad Guys - Who's Who in Mortgage Fraud - Course Syllabus
3.0 Elective Hours
Mortgage loan fraud occurs when false statements are made to qualify for a loan. There are a number of practices amounting to loan fraud that can get real estate licensees in trouble. False statements include bogus earnest money deposits, also called double contracts or hidden contracts.
A second mortgage can be involved that no one discloses. For example, a broker writes a transaction for an 80% conventional loan, representing that the buyer is putting 20% down. The seller is actually carrying back a second mortgage, but this is not being disclosed to the lender. That is loan fraud.
Each year, the Federal Bureau of Investigation (FBI) and Financial Crimes Enforcement Network (FinCEN) reports an increase in Suspicious Activity Reports (SARs) related to mortgage fraud. Estimated annual losses are in the billions of dollars! These shocking results tell us that more efforts are needed to combat this growing trend.
Mortgage fraud is the fastest-growing white collar crime affecting the United States today. By reporting illegal activities, we can do our part in reducing mortgage fraud. Upon completion of this course, the real estate licensee will be able to describe those actions encompassing predatory lending practices.