Exam 1: IV pt. 1 Flashcards
What is mortgage fraud?
involves cases of “intentional misrepresentation to a lender for the purpose of obtaining a loan that would otherwise not be advanced by the lender
Experts have tied increases in __________ _____ to the cooling real estate market
mortgage fraud
What is the different between fraud-for housing and fraud-for-profit?
Fraud-for-housing- cases occur when borrowers lie about their financial information in order to secure the mortgage so they can purchase a home
Fraud-for-profit- occurs when offenders commit the fraud in order to reap a monetary benefit from the mortgage transaction
List the several different types of mortgage fraud.
1) Straw Buyer Fraud
2) Short Sale Fraud
3) Appraisal Fraud
4) Equity Skimming
5) Reverse Mortgage Fraud
6) Fraud during closing and settlement
7) Foreclosure rescue scams
8) Builder-initiated fraud
9) Flipping
10) Qualifications fraud
11) Real estate agent/investor fraud
Which type of mortgage fraud is this:
occurs when individuals who do not plan on living in or even owning a house purchase the house and then deed it over to the person who will live there
Straw Buyer Fraud
Which type of mortgage fraud is this:
occurs when parties involved in the short sale manipulate the process in order to persuade the lending institution to permit the short sale to occur
Short Sale Fraud
Which type of mortgage fraud is this:
occurs when appraisers misrepresent the actual value of a home
Appraisal Fraud
______ _____ refers to instances where landing institutions allow homes to be sold for amounts that are lower than what the homeowner owed on the home’s mortgage
short sale
What are two types of short sale fraud?
1) Premeditated short sale fraud
2) “Secondary short sale fraud”
Which type of short sale fraud is this:
when the offender uses straw buyers to purchase and ultimately default on a home loan, creating a short sale situation so that the perpetrator himself can take advantage and purchase the home at a steep discount
Premeditated short sale fraud
Which type of short sale fraud is this:
involves situations in which the home has a second mortgage or equity loan attached to it
“Secondary short sale fraud”
Which type of short sale fraud is this:
involves situations in which the home has a second mortgage or equity loan attached to it
“Secondary short sale fraud”
What are the 4 types of Appraisal Fraud?
1) Inflated appraisals
2) Deflated appraisals
3) Windshield appraisals
4) Conspiracy appraisal fraud
