Fraud detection, Reporting and prevention

Question 1

What can the penalties be for mortgage fraud?

Answer 1

$1,000,000 and/or 30 years imprisonment.

Question 2

Define Liar loans

Answer 2

For low-doc or no-doc loans, consumers were inflating their income therefore lying to get a larger loan.

Question 3

Define “property flipping”

Answer 3

It’s when a property is purchased and sold right away based on an inflated appraisal. Usually within the week or even the day.

Question 4

(FERA) Fraud Enforcement and Recovery Act: when was it created and why?

Answer 4

It was created in 2009 to help facilitate mortgage fraud and financial help the investigations detecting fraud.

Question 5

Name all of the possible fraud that would be considered “mortgage fraud”

Answer 5

1. bank fraud
2. wire fraud
3. mail fraud
4. false statements to government
5. money laundering
6. conspiracy