RI 3.0 hours How Mortgage Frauds Work - Course Syllabus


Course Syllabus:

3.0 Elective Hours

Every loan has a maximum seller contribution. An agent wrote a contract and put in the maximum seller contribution. The selling price was $200,000. $12,000 is shown as the seller contribution, but the buyer needed more money and the six percent won't cover everything in the home the buyer is going to purchase.

What to do? One thing is to increase the price and then have the seller pay more money. If the seller can't contribute anymore - what do they do? After closing, the seller pays the buyer, making it a gift. This gift is illegal.

After the closing, when mortgage fraud has been committed, the proceeds may be used to pay off any number of co-conspirators. These may include mortgage brokers, loan processors, counterfeit document preparers, bank officers and employees, employment verifiers, appraisers, real estate agents, straw sellers, straw borrowers/investors, and closing attorneys and/or other co-conspirators. All the parties to the fraud go to the closing together and then the bank together to ensure they all get their share.

Schemes to defraud may include: false money for straw buyers; investors get the shaft; fake leases to qualify buyer; attorneys launder flip money; appraisers use bad comparables; closes occur without attorney or buyer; and the flips are in the same neighborhood. This course will provide you with a better understanding of the many schemes that are common place in mortgage fraud.