Preventing Mortgage Fraud

Understanding the characteristics of fraud schemes in mortgage transactions is a fundamental step to detect, prevent, and resolve unethical and unlawful activities. In this course, there is an explanation of the different fraud schemes so mortgage professionals can easily detect and prevent them from occurring.


In addition, this course will identify the two regulatory entities working to track mortgage fraud cases and the red flags that indicate there may be mortgage fraud or misrepresentation in the loan documentation. Finally, there is an opportunity to hear from Robin Dick, a leader at Wetzel and Associates, a Stewart company (formerly Wetzel Trott). Robin is in charge of Quality Control and the fraud detection unit and will share her knowledge and experience related to fraud schemes, including flopping. Robin will explain what flopping means and how lenders should watch for the red flags that indicate it may be occurring.

The course covers the following objectives:

- Explain the roles performed by Financial Crimes Enforcement Network (FinCEN) and the Mortgage Asset Research Institute (MARI) for preventing fraud
- Categorize the different types of mortgage fraud
- Describe various ways to prevent mortgage fraud
- Explain the differences between property flipping and flopping
- Recognize red flags in a mortgage loan file that may indicate misrepresentation or fraud


The course covers the following topics:
- The methods used by the FinCEN and MARI to track mortgage fraud and how the data benefits the industry
- The details in a Mortgage Loan Fraud Suspicious Activity Report (MLF SAR)
- The top ten states for post-funding investigations based on MARI’s data
- How to interpret the fraud statistics
- A case study is presented with suspicious activities noted and explained
- Definitions for the various categories of mortgage fraud
- The details for occupancy fraud, appraisal fraud, income fraud and shotgunning fraud
- An outline of the red flags for either a property flipping scheme or a flopping scheme
- Details to watch for in a purchase transaction that could lead to fraud


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