3.0 hours Good Guys/Bad Guys - Who's Who in Mortgage Fraud – Course Syllabus

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Course Syllabus:

3.0 Elective Hours

Predatory lending involves the use of deceptive or fraudulent practices in the origination, closing, or servicing of a loan secured by real estate. The loan officer deceives the borrower by hiding fees or points, assigning an adjustable rate loan rather than a fixed rate loan, mandating unneeded insurance or a prepayment penalty, or selling a subprime mortgage loan when the borrower could qualify for a lower cost conventional loan.

Fraud adapts to changing economic and regulatory circumstances. Fraud schemes are constantly evolving, can be perpetrated or discovered at any point in the loan life cycle up to and including the sale on the secondary market and servicing, and frequently involve forged or altered supporting documentation.

Predatory lending is most often seen on refinance transactions, subprime, or hard money loans. This type of transaction involves fewer parties than a purchase transaction, making the deception easier. But these practices can occur in purchase transactions where other players are involved: the escrow closer for example.

Fraudsters can prey on anyone refinancing a mortgage. Upon completion of this course, the real estate professional will be able to identify the potential customers, scams, and techniques of predatory lending and mortgage fraud.

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