South Carolina Real Estate Continuing Education Courses - SOUTH CAROLINA Provider Number: 952
4.0 hours Good Guys/Bad Guys - Who's Who in Mortgage Fraud Course Syllabus
4.0 Elective Hours.
Closing attorneys may "launder" flip proceeds by issuing settlement checks to shell companies controlled by the fraud perpetrator. They may even pay for luxury vehicles, art collections, and other items which do not have anything to do with clearing title. Some closing attorneys will even pay the straw borrower and reflect such payment on the Closing Disclosure form (formally HUD-1 settlement form).
Appraisers can sometimes omit the original sale --- the one that reflects the true market price from the section of the appraisal form where all sales within the past year are supposed to be listed. The appraiser may deliberately leave out the last sale on the appraisal because the flip was just done, causing the underwriter to ask questions.
In some deals, an appraiser can use the high sale prices on previously flipped properties as comparables. Also used occasionally are properties that did not close, those with additional amenities, or those that are close geographically but are not in the same price range.
Several fraud groups have obtained millions of dollars in mortgage loans for houses, not in existence or were burned out crack houses. This course provides the real estate professional with the knowledge of how dishonest appraisers and attorneys manipulate using various techniques. Upon course completions, you will be able to identify the most common mortgage fraud schemes.