Chapter 22 - Mortgage Fraud Flashcards
What is an air loan?
A mortgage on a property that does not exist
What is foreclosure fraud?
When you get a homeowner to transfer the title of their home to you by “promising” them you can prevent their property from going into foreclosure
Define “Fraud for profit”
Fraud committed to obtain the proceeds of the mortgage without the intent to repay the loan
Define “Fraud for shelter”
When someone wishes to purchase a home to live in but has no intention of paying back the mortgage
What is mortgage fraud?
Intentional omission of information or use of misrepresentation to obtain a mortgage
What is a straw borrower?
An individual who is paid to use their identity to obtain mortgage financing OR is a victim of identity theft
What is title fraud?
Fraudulent transfer of title of a property
What is value fraud?
A misstatement of the value of a property
How does the Land Title Assurance Fund assist homeowners who are victims of fraud?
the LTAF compensates individuals who have suffered a financial loss due to fraud or errors or omissions in the land registration system
