Unit 10 Flashcards
Lenders security for that debt. It is a transfer of an interest in the land from the owner to the lender.
mortgage
Mortgagee
AKA the lender, the individual that lends the funds secured by real property
mortgagor
AKA the borrower, an individual that borrows the funds.
Personal property
Movable, non-permanent items that can be removed without injury to the property
Material misstatement, misrepresentation, or omission, relied upon an underwriter or lender to fund, purchase or insure a mortgage loan.
Mortgage fraud
fraud for housing
occurs when a borrower attempts to obtain a larger mortgage than they would be able to arrange and falsifies info to qualify for the mortgage.
fraud for profit
individuals seeking to make money through property manipulations
acquire housing for which the borrower does not financially qualify would be beyond their ability to afford, falsifies personal, financial info to qualify
fraudulent qualification
fraudulent occupancy
requires the borrowers to commit to residing on the property, but they don’t and they rent it
non-occupancy scheme
the borrower makes a false statement that they will live in the property when it’s actually used as a rental property
straw buyers
individuals who sell the use of their personal credit info.
bankruptcy fund
a fraudster has rental properties, they don’t pay the mortgage, which causes foreclosure, and files for bankruptcy to delay the process while they make more money from rental properties.
debt-consolidation scheme
individuals struggle fiancially, fraudsters offer to pay their mortgage in exchange if they sign over the property’s title to him.
fraudster typically targets owners who have accumulated significant equity in their properties such as seniors.
equity access scheme
secret second
the second mortgage on the property was kept secret from the first mortgage.
vendor cash back scheme
the purchase contract is written with an inflated amount & later amended to a much lower amount
contract kiting
2 contracts are written, only one is valid and a false one is given to the lender for a bigger loan.
failure to retain records or identify sellers/buyers could lead to fines up to
$500,000 or 5 years jail time
Alternative term for personal property
chattel
includes land, structures affixed to the land, and the rights and interests a person holds in respect to the land
real property
in order to qualify for a mortgage, an individual’s income has to be a certain amount, he alters the documents to reflect a high amount
false-documentation scheme
false deposit scheme
A buyer purchases a residential property, the deposit that was given is by someone else, but the individual claims it is theirs.
failure to retain records or to identify sellers/buyers could lead up to fines up to
$500,000 or 5 yrs jail time
individual engaging in fiancial transactions to concel the identity, source or destination of money that has been illegally gained
money laundering
this federal agency is responsible for the collection, analysis and disclosure of info to assist in the detection, prevention and deterrence of money laundering and terriost
FINTRAC
