Types of Scams
Government Agencies & Laws
Privacy
Company
Wildcard
100
______ is the illegal or improper use of an older person's funds, property, or assets. It can be perpetrated by strangers, family members, caregivers, or others in positions of trust.
Financial Elder Abuse
100
What does OFAC stand for?
Office of Foreign Asset Control
100
What does NPI stand for (privacy).
Non-Public Information
100
What does FCCMS stand for?
Financial Crimes Case Management System
100
What are the two main GSEs in the mortgage industry?
Fannie Mae and Freddie Mac
200
List three documents to review if there are income concerns on a loan
- W2
- Paystubs
- Bank Statments
- Tax Returns
200
SARs must be filed with FinCEN within XX calendar days of the date the financial institution first detected the suspicious activity.
30 Days with a suspect
60 days without a suspect
200
How often should a borrower be sent a privacy notice?
Within a 12 month period
200
When screen in MSP do I go to if I want to see if a letter was sent to a borrower?
PL05
200
The term ______ _______ refers to company that is contractually responsible for the overall servicing of the loan, even if they outsource some of the tasks.
Master Servicer
(or loan servicer / mortgage servicer)
300
This type of fraud, in the context of real estate, is a fraudulent practice where the value of a property is intentionally misrepresented, often to deceive a lender or other party involved in a real estate transaction. This can involve inflating the value of a property to obtain a larger loan or secure a sale at a higher price than the property is actually worth.
Appraisal Fraud
300
What does FinCEN stand for?
Financial Crimes Enforcement Network
300
What does CCPA stand for?
California Consumer Privacy Act
300
Where can employees access the fraud referral submission? (assuming they didn't have the FCCMS link saved).
Intranet > Risk / Compliance > Fraud Team Referral
300
What should you do if you receive a suspicious email?
Click the Phish Alert button
400
Mortgage fraud in the housing market is categorized into two main types:
Fraud for profit and fraud for housing
400
_____ is a U.S. law requiring financial institutions to help detect and prevent money laundering. It mandates record-keeping and reporting requirements for cash transactions exceeding $10,000, as well as suspicious activity reporting, to combat illegal activities like money laundering, tax evasion, and terrorism financing
Bank Secrecy Act (BSA)
400
What screen will tell you if a loan is a subserviced loan?
Mas1 / USR1
400
Where can employees access the PDF to report a potential privacy breach? And how do they submit the form?
Intranet > risk / compliance > Report a Potential Privacy Breach
and email it to the privacy email box
400
What is the purpose of a FinCEN 314(b) request?
It permits financial institutions, upon providing notice to the United States Department of the Treasury, to share information with one another in order to identify and report to the federal government activities that may involve money laundering or terrorist activity.
500
_____ scams target homeowners facing foreclosure with promises of help to keep their homes, but instead, they exploit the homeowners' desperation, often leading to further financial loss.
Foreclosure Rescue / Modification Scams / Default Avoidness
500
The ____ helps consumers by providing educational materials and accepting complaints. It supervises banks, lenders, and large non-bank entities, such as credit reporting agencies and debt collection companies.
Consumer Financial Protection Bureau (CFPB)
500
What is the timeframe a borrower has to opt-out of information sharing?
There is no time requirement, they can opt out anytime.
500
Where can you locate company polices?
Where can you locate fraud team job aids?
Comapny - PolicyTech
Fraud team - Fraud Library & Aids
500
What is a straw buyer?
A straw buyer is someone who buys a property or secures a mortgage for another person who may not be able to do so themselves, often due to poor credit or legal restrictions. The straw buyer typically has good credit and is used to disguise the identity of the actual buyer, who may be attempting to circumvent legal or financial barriers.
Investopedia+1
Legal Implications
Using a straw buyer can be illegal, especially if the intent is to commit fraud. For instance, if the straw buyer has no intention of living in the property or making mortgage payments, and the real buyer is unable to secure financing due to bad credit, this arrangement can constitute mortgage fraud. Such actions can lead to serious legal consequences, including criminal charges for both the straw buyer and the actual buyer if the fraud is discovered.
Shouse Law Group+3
Common Scenarios
- Mortgage Fraud: A common scenario involves a real estate agent or broker finding a straw buyer to secure a mortgage for a property that the actual buyer will control. The straw buyer may receive a kickback for their participation. 2
- Illegal Property Flipping: In some cases, straw buyers are used to inflate property values through fraudulent transactions, where the property is bought at an inflated price and then quickly resold. 2
- Circumventing Restrictions: Straw buyers may also be employed to bypass legal restrictions, such as when a person is barred from purchasing property due to legal issues. 2
4 Sources
Conclusion
While straw buying can sometimes occur in legitimate contexts, such as helping a family member purchase a home, it often leads to illegal activities and significant risks for all parties involved. Understanding the implications of straw buying is crucial for anyone involved in real estate transactions to avoid potential legal issues.