Foundations of Mortgage Fraud: Identifying the Players and Investigating Their Schemes (Online Self-Study)

CPE Credit: 4 
Course Level: Intermediate
Prerequisite: Understanding of real estate financing and basic fraud examination techniques


This course presents a brief overview of the mortgage industry and its impact on the economy. It examines individuals involved in the mortgage loan process and identifies specific areas vulnerable to fraud. You will also learn about common fraud schemes affecting the mortgage industry.

Key Takeaways: 

  • Evolution of the mortgage industry
  • Four most common origins of residential mortgage loans
  • Characteristics of subprime loans
  • Factors affecting mortgage fraud
  • Causes of the subprime market implosion

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CPE Information:

You Will Learn How To:

  • Recognize the ways the mortgage industry has evolved and influenced the market
  • Assess current and emerging trends in mortgage fraud
  • Identify the legal aspects of mortgage fraud, at both federal and state levels
  • Identify the players in the mortgage industry and the frauds they perpetrate
  • Recognize mortgage fraud schemes and common red flags for each





Table of Contents:

  • Lesson 1: The History of the Mortgage Industry
  • Lesson 2: Loan Market Offerings
  • Lesson 3: The Evolution of Mortgage Lenders and Brokers
  • Lesson 4: Factors Affecting Mortgage Fraud
  • Lesson 5: Legislation and Regulation in the Mortgage Industry
  • Lesson 6: The Mortgage Fraud Problem Today
  • Lesson 7: The Impact of Mortgage Fraud
  • Lesson 8: Trends in Mortgage Fraud
  • Lesson 9: Mortgage Fraud in the Future
  • Lesson 10: The Perpetrators of Mortgage Fraud
  • Lesson 11: The Property Seller
  • Lesson 12: The Real Estate Listing Agent
  • Lesson 13: The Borrower
  • Lesson 14: The Real Estate Buyer’s Agent
  • Lesson 15: The Lender
  • Lesson 16: Third-Party Originators (TPOs)
  • Lesson 17: The Loan Originator
  • Lesson 18: The Loan Processor
  • Lesson 19: The Underwriter
  • Lesson 20: The Appraiser
  • Lesson 21: The Title Insurer and Escrow Agent
  • Lesson 22: The Notary Public
  • Lesson 23: Servicing and Secondary-Market Investors
  • Lesson 24: Mortgage Servicing Companies
  • Lesson 25: Loan Resolution
  • Lesson 26: Mortgage Fraud Schemes
  • Lesson 27: Property Flipping
  • Lesson 28: Builder Perpetrated Schemes
  • Lesson 29: Foreclosure Rescue Schemes
  • Lesson 30: Deceptive Short Sales
  • Lesson 31: Chunking and Shotgunning
  • Lesson 32: Identity Fraud and Theft of Property Schemes
  • Lesson 33: Churning (Loan Flipping)
  • Lesson 34: Common Misrepresentations in Mortgage Fraud Schemes

ACFE Online Self-Study Courses Feature:

24/7 access to courses through your Internet browser

Save time and quickly earn CPE credits with instant access, grading and printable certificate

The flexibility to start or stop a course and pick-up right where you left off

No additional shipping fees

Learn more about accessing your online self-study course.

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System Requirements:

Internet access: High-speed connection recommended

Free Adobe Flash Player

Speakers required for video sound

Online Self-Study Troubleshooting Guide:

Problem: When I attempt to access my courses from “My Online Learning,” the course never launches, or I receive an error message saying my pop-up blocker needs to be turned off.

Solution: Your web browser must be configured to allow pop-ups in order to access ACFE Self-Study courses. Your browser may prompt you to allow pop-ups, or you may have to allow them manually. You may either allow them for all sites, or allow them just for the current site.

For information on how to manage your pop-up blocker settings in a specific browser, click the link below that corresponds to the browser you are using:

Internet Explorer
Google Chrome

Also note that many toolbars, such as the Google Toolbar and Yahoo! include pop-up blockers as well. If you have one or more toolbars installed on your browser with built-in pop-up blockers, you must configure them to allow pop-ups.

Problem: When I click on a course from “My Online Learning,” I am presented with a login page, but my username and password won't allow me to log in.

Solution: You do not have to log in a second time to access your online self-study. You most likely reached the login page because you clicked the link labeled “Click Here” as shown below:

Online SS Image Absorb Error

Do not click that link; instead, allow your browser to automatically open the eLearning window on its own, which should happen after a few seconds. This will log you in automatically so that you can access your online courses.

Problem: I receive the following error when I try to load a different lesson with a course:

SS Online API Error

Solution: This occurs in Internet Explorer when trying to load a different lesson without closing the current lesson. This error can be avoided two different ways:

Always close the current lesson before going to another one. Always click the Close Window button (usually the red “X” in the upper right corner) of the current lesson before clicking on another lesson.

Use a different browser. This error seems to only occur in Internet Explorer, so using Mozilla Firefox or Google Chrome should resolve the issue (see below for links to download either of these browsers).

Other Troubleshooting Tips: If you encounter other errors, such as courses freezing or crashing, we recommend taking the following action:

Try a different browser. ACFE online self-study courses are designed to run on all modern web browsers, but if you encounter a problem that is not solved using one of the suggestions above, you can try using a different web browser to see if it eliminates the problem. We have most frequently seen where using Mozilla Firefox or Google Chrome has resolved an issue that was seen in Internet Explorer.

Mozilla Firefox can be downloaded here
Google Chrome can be downloaded here

Make sure you are running the latest version of Flash. Go to to see what version of Flash you are running, and then compare that to the table on that page to see what the latest version is for your operating system/browser combination. If you are not running the newest version, you should upgrade and see if that resolves the problem.