Unit 10

Question 1

Lenders security for that debt. It is a transfer of an interest in the land from the owner to the lender.

Answer 1

mortgage

Question 2

Mortgagee

Answer 2

AKA the lender, the individual that lends the funds secured by real property

Question 3

mortgagor

Answer 3

AKA the borrower, an individual that borrows the funds.

Question 4

Personal property

Answer 4

Movable, non-permanent items that can be removed without injury to the property

Question 5

Material misstatement, misrepresentation, or omission, relied upon an underwriter or lender to fund, purchase or insure a mortgage loan.

Answer 5

Mortgage fraud

Question 6

fraud for housing

Answer 6

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.

Question 7

fraud for profit

Answer 7

individuals seeking to make money through property manipulations

Question 8

acquire housing for which the borrower does not financially qualify would be beyond their ability to afford, falsifies personal, financial info to qualify

Answer 8

fraudulent qualification

Question 9

fraudulent occupancy

Answer 9

requires the borrowers to commit to residing on the property, but they don’t and they rent it

Question 10

non-occupancy scheme

Answer 10

the borrower makes a false statement that they will live in the property when it’s actually used as a rental property

Question 11

straw buyers

Answer 11

individuals who sell the use of their personal credit info.

Question 12

bankruptcy fund

Answer 12

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.

Question 13

debt-consolidation scheme

Answer 13

individuals struggle fiancially, fraudsters offer to pay their mortgage in exchange if they sign over the property’s title to him.

Question 14

fraudster typically targets owners who have accumulated significant equity in their properties such as seniors.

Answer 14

equity access scheme

Question 15

secret second

Answer 15

the second mortgage on the property was kept secret from the first mortgage.

Question 16

vendor cash back scheme

Answer 16

the purchase contract is written with an inflated amount & later amended to a much lower amount

Question 17

contract kiting

Answer 17

2 contracts are written, only one is valid and a false one is given to the lender for a bigger loan.

Question 18

failure to retain records or identify sellers/buyers could lead to fines up to

Answer 18

$500,000 or 5 years jail time

Question 19

Alternative term for personal property

Answer 19

chattel

Question 20

includes land, structures affixed to the land, and the rights and interests a person holds in respect to the land

Answer 20

real property

Question 21

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

Answer 21

false-documentation scheme

Question 22

false deposit scheme

Answer 22

A buyer purchases a residential property, the deposit that was given is by someone else, but the individual claims it is theirs.

Question 23

failure to retain records or to identify sellers/buyers could lead up to fines up to

Answer 23

$500,000 or 5 yrs jail time

Question 24

individual engaging in fiancial transactions to concel the identity, source or destination of money that has been illegally gained

Answer 24

money laundering

Question 25

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

Answer 25

FINTRAC