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

Most borrowers want a fixed rate mortgage for budgeting purposes. Adjustable rate mortgages (ARMs) have a higher element of risk and many more components you should understand before signing an agreement. For this reason, lenders must provide mandatory government disclosures on ARM products. Fixed rate loans do not carry this provision. It is quite a leap from fixed rate to adjustable rate, so the deception must be carefully orchestrated.

One of the most effective ways of getting a borrower into an ARM without his knowledge is to change the order of documents presented for signature. The signature pages (usually the last) are tagged and presented first. The note, deed of trust, and all other pertinent documents including disclosures are signed first and then reassembled. This places the psychological advantage on the side of the lender.

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 sale on the secondary market and servicing, and frequently involve forged or altered supporting documentation. This course covers the most common mortgage fraud schemes and is a must have for the real estate licensee.

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