TN 3.0 hours Good Guys/Bad Guys - Who's Who in Mortgage Fraud - Course Syllabus
3.0 Elective Hours
This course reviews the most common frauds that occur in the mortgage business. In one scheme, co-conspirators, commonly referred to as "straw sellers," would falsely claim current ownership of these properties to appear at the closings where the properties are sold to unqualified "straw borrowers," to disburse the sale proceeds at the direction of the defendant and his co-conspirators and, on some occasions thereafter, to purchase with portions of the sale proceeds the same properties which were just sold. Sometimes new mortgage loans are obtained in stolen identities, including that of deceased individuals.
A Closing Disclosure form (formally HUD-1 Settlement Statement) can sometimes be back-dated to show prior purchase of the property with a (false) substantial down payment by the borrower, to obtain refinancing under less scrutiny than an original mortgage loan would generate.
This course includes case studies covering schemes to flip properties in a new housing development using false information on comparable properties; schemes to defraud financial institutions and other mortgage lenders by recruiting and causing straw borrowers to submit false qualifying information to obtain mortgage loans. Also covered is a case including 19 co-defendants charged with conspiracy, bank fraud, wire fraud, mail fraud, identity theft, fraudulent use of Social Security Numbers, money laundering, obstruction of justice, and perjury.