3.0 hours Good Guys/Bad Guys - Who's Who in Mortgage Fraud Course Syllabus
3.0 Core and/or Elective.
The best way for a licensee to manage the risk of mortgage fraud is to be aware of the red flags. All the terms, conditions, rebates, and credits involved in the real estate transaction need to be in the documents of agreement, which the lender must receive. You cannot withhold any documents from a lender. There are no side agreements outside of escrow or settlement.
Is the owner really occupying the property?
Are there two or more simultaneous or close closings on the same property? Today, settlement providers are supposed to notify the lender of a recent prior closing, but one who is working in a fraud scheme likely will not. Simultaneous or close closings may or may not be a problem, but it is one-way loan fraud occurs. It is a common mortgage fraud red flag to investigators.
Another red flag is when two parties who are the first and second buyers have the same phone number.
If a lender, a loan representative, a mortgage broker, or a loan officer dictates to the broker how to write the transaction and then it doesn't match with what is going on, that is a red flag.
If the loan representative, mortgage broker, or loan officer says, "I do not want to see a copy of that second mortgage that you have agreed to and don't put it in the terms of the agreement," then that should be a red flag.
If a real estate licensee is asked to do something that doesn't sound right, the best thing that he/she can do is to start asking questions until the truth has been uncovered. It will not necessarily go away and if the licensee ignores it, he/she may unwittingly end up in the middle. This course aids the real estate licensees by providing examples of the common mortgage fraud schemes and how to recognize red flags.