Mortgage Fraud

4 Clock Hours
C-5803

Fraud is generally defined as the “intentional misrepresentation of the truth in order to deceive another.”  Chris Swecker, Assistant Director of the FBI’s Criminal Investigative Division, defines mortgage fraud as any form of “material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan.”

Fraud is a growing problem for the mortgage industry.  Fraudulent mortgage activities result in artificially inflated property values, increased foreclosure rates, significant financial losses, and increased consumer costs.  Industry statistics suggest that one in ten mortgage applications includes some form of misrepresentation.  The lack of industry-wide reporting requirements makes estimating the scope of mortgage fraud difficult.  Nevertheless, prosecution of mortgage related fraud is rising dramatically.  In this course we will look at:

Types of fraud in mortgage lending
Common roles played by fraud perpetrators
Impact on the real estate and mortgage industry
Strategies for real estate agents, loan originators and brokers on reducing fraud
Mortgage fraud cases in Washington State

This class will also include a review of the new Washington State Distressed Property Law, as required by DOL.

This class is also approved for mortgage broker/LO continuing education credits through the National Association of Mortgage Fiduciaries, a WA DFI-Approved Professional Organization.

Schedule of upcoming classes

“An exceptional class, lots of examples and class participation. I learned a number of things I did not know about the mortgage business.  I am anxious to pass the information along to my buyers so that they are more aware and better consumers.”

“Well presented and great interaction.  Instructor was professional and knowledgeable. One of the most fun classes I have been to regarding mortgage and lending information.”

“Mortgage Fraud class was fun and interactive. Time moved fast! Engaging!”

“This class was stimulating and instructive. Many of the issues are well imprinted in my memory because of the dialogue within the class.”

“I enjoyed the interaction between my instructor and classmates.”

“Very enlightening experience. I had no idea how prevalent the big M fraud was in our area but also, this class made me think how easily the motivation to buy and sell a house can corrupt ethical guidelines and harm lenders and consumers.”

“An eye-opener.”

“Really made me think about what is considered fraud from the perspective of a lender.”

“I learned a lot and plan to use this information throughout my career.”

“I learned how to best make myself AND my buyers more aware of the red flags that can lead to being a victim of mortgage fraud.”

“I will be more diligent in taking care of my customers and clients.”

“Great class; easy to understand. Informative with lots of interaction, which keeps us all involved and awake.  I love the energy of the instructor and the classroom vibe!”

Schedule of upcoming classes