Together, Reducing Fraud Worldwide

Mortgage Fraud


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  CPE Credit: 16
Course Level: Overview
Prerequisite: None


 

In the most recent Financial Crimes Report to the Public, the FBI states that “the continuing deterioration of the real estate market and the dramatic rise in mortgage delinquencies and foreclosures helped fuel the financial crisis of 2009 and exposed fraudulent practices that were prevalent throughout the mortgage industry.” Compounding the problem, as the FBI notes, is that “a high percentage of mortgage fraud involves collusion by industry insiders, such as appraisers, mortgage brokers, attorneys, loan originators, and other professionals engaged in the industry.”


To help combat this financial plague, fraud examiners must be knowledgeable of the process, players and potential scheme types prevalent in the mortgage environment. This two-day course will help you learn to identify the warning signs of mortgage fraud, and will provide you with practical approaches to preventing, detecting and investigating such schemes. Don’t miss this opportunity to get the best training to fight this growing threat to businesses and the economy.

 

Upcoming Courses 

No courses are scheduled at this time. Please view our Calendar of Events for other upcoming seminars. 

 

You Will Learn How To:  

Identify mortgage fraud indicators and the most common types of mortgage fraud 

Implement mortgage fraud prevention measures, including best practices 

Recognize red flags of credit, collateral, capacity documents and closing documents

Understand legal aspects of mortgage fraud, including how it is prosecuted at the federal and state level, and current federal and state legislative efforts

Investigate a suspected mortgage fraud scheme to resolution 


Who Should Attend:  

Attorneys, legal professionals and law enforcement personnel

Governance, risk management and compliance officers

Internal auditors, forensic accountants and bank examiners

Real estate and financial industry personnel 

Certified Fraud Examiners and other anti-fraud professionals 

Fees 

Members: $695
Non-Members: $845  

 

CPE Credit
16 

 

Field of Study
Specialized Knowledge and Applications 

 

Course Level
Overview 

 

Prerequisite
None 

 

Advanced Preparation 

None
  

Delivery Method 

Group-Live
  

  Day One  
7:30-8:00 a.m.   Registration & Continental Breakfast   
8:00-9:20 a.m. 

Introduction and Background 

The mortgage industry has evolved through the years and consistently faces new challenges in the fight against mortgage fraud. In this opening session, you will be introduced to a short history of the mortgage industry, the secondary market influence on the industry today, factors that affect mortgage fraud, the scope and industry reaction to the mortgage fraud problem and predictions for the future in combating mortgage fraud.

9:20-9:35 a.m.  Break 
9:35-10:55 a.m. 

The Players, Process and Paper – Lifecycle of a Mortgage Loan 

During the life of a mortgage loan, from origination to resolution, there are numerous players involved, each with specific duties and responsibilities. Each player can also orchestrate, facilitate, or collude to commit mortgage fraud. In order to prevent, detect and investigate mortgage fraud, you must first understand this process. In this session, you will be introduced to the various players involved in the life of a mortgage loan, their duties and responsibilities and how each can exploit the process in order to commit mortgage fraud. We will also meet the two borrowers whose loans will be used in the case study.

10:55-11:10 a.m.  Break  
11:10 a.m.-12:30 p.m. 

Mortgage Fraud – Emerging Schemes 

There are three distinct types of mortgage fraud, each with a different goal or objective: fraud for profit, fraud for property and fraud for criminal enterprise. In this session, you will learn about the different fraud schemes utilized today along with the red flags to detect these schemes. You will also be introduced to the common misrepresentations used in the commission of these fraud schemes.

12:30-1:30 p.m.  Group Lunch  
1:30-2:50 p.m. 

Red Flags of Credit 

Lenders rely on a borrower’s credit when making an underwriting decision. Credit is a common misrepresentation to mislead the lender that the borrower has the ability to repay. In this session, you will learn about credit scores and the ways that a borrower’s credit can be misrepresented.

2:50-3:05 p.m.  Break  
3:05-4:25 p.m.  

Red Flags of Collateral 

Lenders rely on sufficient collateral when making an underwriting decision. In assessing collateral, a lender will look at the type of the property, the usage of the property and the value of the property in order to ensure that the lender will be adequately secured should the borrower default on the loan. In this session, you will learn common ways that values are inflated to cause a lender to approve loans for more than a property is worth. You will also learn common misrepresentations made about the property’s type and usage.

 

 

  Day Two 
7:30-8:00 a.m.   Continental Breakfast   
8:00-9:20 a.m. 

Red Flags in Capacity Documents 

Lenders rely on the borrower’s capacity or ability to repay a loan. To gauge capacity, a lender will consider a borrower’s employment, income, assets and debts. In this session, you will learn the common ways capacity documentation is misrepresented to mislead lenders.

9:20-9:35 a.m.  Break  
9:35-10:55 a.m. 

Red Flags in the Closing Documents 

The closing of the transaction is the culmination of the fraud scheme. This closing transaction is where the lender provides the funds based on material misrepresentations and title is conveyed to the borrower. In this session, you will learn how to read key closing documents, such as the lender’s closing instructions, the HUD-1 and the disbursement summary to look for suspicious transactions and red flags.

10:55-11:10 a.m.  Break  
11:10 a.m.-12:30 p.m. 

Prevention, Detection and Investigation 

The key to combating mortgage fraud is prevention and early detection. In this session, you will learn best practices for preventative controls to keep mortgage fraud from occurring and pre-closing detection measures. This session also discusses post-closing detection techniques and investigative techniques and steps to test, prove, and document the red flags identified.

12:30-1:30 p.m.  Group Lunch  
1:30-2:50 p.m. 

Legal Aspects and Remedies 

The goal of most mortgage fraud investigations is to prosecute, recover funds, prevent a repurchase or investigate an insurance claim. In this session, you will learn about the different federal and state legal remedies available for criminal prosecution or civil litigation. You will also learn about regulatory and licensing remedies. You will learn tips on packaging and referring a mortgage fraud case to state and federal prosecutors. You will also learn about recent state criminal statutes that make mortgage fraud a felony.

2:50-3:05 p.m.  Break  
3:05-4:25 p.m.  

Case Study 

In this final session, we will utilize investigation techniques and apply them to the case examples. The investigation will culminate in the interview of the loan parties to determine the scheme, the misrepresentations and the culpable parties. You will leave this course with the training that you will need to keep up with the latest fraud schemes, institute preventative controls, and investigate a mortgage fraud to resolution.

Event Cancellation Policy 

Our cancellation policy is intended to keep costs low for attendees. Due to financial obligations incurred by ACFE, Inc. you must cancel your registration prior to the start of the event. Cancellations received less than 14 calendar days prior to an event start date are subject to a $100 administrative fee. No refunds or credits will be given for cancellations received on or after the start date of the event. Those who do not cancel and do not attend are responsible for the full registration fee.

 

Satisfaction Guarantee 

ACFE seminars are unmatched in scope and effectiveness and backed by our unconditional satisfaction guarantee. If you attend an ACFE event and are not completely satisfied, please contact an ACFE Member Services Representative at MemberServices@ACFE.com or call (800) 245-3321 / +1 (512) 478-9000.

 

NASBA CPEThe Association of Certified Fraud Examiners, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org 
 

 

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