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

A common mortgage fraud scheme is false money for straw buyers. In this scam, bank employees are paid to issue fake cashier's checks, which are then presented as deposits or down payments by straw buyers. Straw buyers may also use fake gift letters.

Often, when a legitimate buyer is short of down payment or closing costs, a parent or grandparent comes up with the needed cash. In order that the money will not show up as one of the borrower's future debts, the lender is told that "the money is a gift and no repayment is anticipated." This may or may not be true. In some cases, the lender requests proof that the grandparent has the cash available for the gift. False gift letters are also used by straw buyers in some cases. Where no lie is involved, the practice is legal.

Most mortgage fraud today is perpetrated by well-organized rings working together. Mortgage fraud groups have attacked hundreds of neighborhoods across the country, causing losses well over a hundred million dollars and immeasurable harm. Upon course completion, the real estate licensee will be able to demonstrate an ability to identify fraud schemes.

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