2.12 Flashcards
(16 cards)
A/an ________ deed is a kind of transfer that is usually used by foreclosure fraud perpetrators who mislead the homeowners into believing that they can save their homes.
quitclaim
Lenders who claim to be your only chance for getting a loan or owning your own home are called _________.
predatory lenders
Illegal ________ is when a property is purchased, falsely appraised at a higher value, and then quickly re-sold.
flipping
“Fraud for profit” and ______ are the two mortgage fraud areas that the FBI investigates.
fraud for housing
Based on existing investigations and mortgage fraud reporting, 80 percent of all reported fraud losses involve collaboration or collusion by industry ________.
insiders
_________ is a type of fraud where illegal actions are perpetrated solely by the borrower.
Fraud for housing
In the “silent second” scheme, the buyer of a property borrows the down payment from the ______ through the issuance of a non-disclosed second mortgage.
seller
In the _______/straw buyer scheme, the identity of the borrower is concealed through the use of a nominee who allows the borrower to use the nominee’s name and credit history to apply for a loan.
Nominee loan
In the Inflated Appraisals scheme, a/an _______ acts in collusion with a borrower and provides a misleading appraisal report to the lender.
appraiser
________ is sometimes referred to as “Industry Insider Fraud” and the motive is to revolve equity, falsely inflate the value of the property, or issue loans based on fictitious properties.
Fraud for profit
The Air Loans scheme is a loan for a non-existent _______.
property
All mortgage fraud programs were recently consolidated within the ____________.
Financial Institution Fraud Unit
Predatory lending typically affects ________, lower income, and challenged credit borrowers.
senior citizens
True or False:
Often flipped properties are ultimately repurchased for 20 percent of their original value.
False
Each Mortgage Fraud scheme contains some type of “material misstatement, _________, or omission.
misrepresentation
An inflated appraisal is a form of _______.
mortgage fraud
