Oregon Real Estate Continuing Education Provider
OREGON School Number: 1278License Renewal Requirements
4.0 hours Good Guys/Bad Guys - Who's Who in Mortgage Fraud Course Syllabus
4.0 Elective Hours
False representations as the primary residence and borrower down payment are especially crucial for "No Doc" loans. Those loans, which involve little or no checking of the documents presented, simply take the borrowers' word for figures like income and assets.
In some cases, the self-employed cannot verify their income because much of it is "under the table" and not reflected in their tax returns. They may look for a "No Doc" loan, for which they can claim any income they choose.
Legitimate No Documentation loans have a place in the market. A buyer who has a great credit score may have trouble documenting all their income. Because the buyer has a good credit score, stated income and stated assets, they may qualify for a "No Doc" Loan. This is legal. But of course, lying about stated assets and income is mortgage fraud.
This is an issue real estate professionals must be aware of. The agent may write the contract up as a normal loan, then let the buyer meet with lenders who guide and assist the buyer in completing the documentation for a loan request. Typically, the licensee will not be involved in the loan process, and must not suggest loan alternatives that are outside the law.
Real estate licensees have been caught filling out employment verifications. They might have intercepted the verification and filled it out for the employee. The result, if caught, is a prison sentence. Upon course completion, the licensee will have a better understanding of the common mortgage fraud schemes. This course is a must have for the real estate professional.