Term
If a coworker knowingly omits child support payments from a client's loan application, what is the best course of action?
A. Ask him how you might get in on the deal in order to make a profit from altered income documents too.
B. Pull your friend aside and tell him that he needs to be a little more careful hiding his document alterations because the manager might see him doing it.
C. Set up a conference with the manager and explain what you believe you saw happening.
D. Call law enforcement and report the incident of loan fraud. |
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Definition
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Term
| Define predatory lending (this may seem obvious, but there's a group of words and phrases that have similar sounding definitions) |
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Definition
| The variety of unethical and in some cases illegal practices that are intended to strip wealth or income from unwary borrowers. |
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Term
| What should lenders and borrowers be on the lookout for when it comes to predatory lenders. |
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Definition
Unduly high fees.
Hidden payment terms.
Loss of equity in a home.
Hidden and unnecessary credit insurance packing.
Mortgage service abuses.
Attempts to convince the consumer to sign over the deed to his home. |
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Term
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Definition
A situation where a consumer is encouraged or "steered" by the lender to a certain product with higher rates and fees.
Note: Some sources estimate that up to half of subprime mortgage borrowers could have qualified for loans with better terms. |
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Term
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Definition
| The practice of adding unwanted extras to the loan without the full knowledge or understanding of the borrower. |
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Term
| What is the most common product packed (ethics) into mortgages? |
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Definition
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Term
| What is the issue with failure to report borrower credit information? |
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Definition
| When borrowers make timely payments, they deserve "credit" for that punctuality. If you don't report it, you're inevitably costing them money. |
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Term
| Define reverse redlining. |
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Definition
| A situation when predatory lenders seek out vulnerable or undeserved groups to push subprime products upon. |
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Term
| What are examples where predatory lenders lend to people who cannot afford the loan? |
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Definition
1. Inducing future business.
2. Equity stripping.
3. Falsified loan applications
4. Adding co-signers
5. Mentally incapacitated homeowners
6. Forgeries. |
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Term
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Definition
| A situation when the predatory lender sneaks a burdensome provision into the loan contract without the borrower's knowledge. |
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Term
| What is most often cited in cases of contract knavery? |
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Definition
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Term
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Definition
| A situation when a vendor takes advantage of the consumer by charging high prices either through fraudulent acts or because the consumer has no other alternative. |
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Term
| What are examples of price gouging? |
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Definition
1. Excessive fees.
2. Unfairly high interest rates.
3. large Yield Spread Premiums. |
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Term
| who runs the Housing Fraud Initiative Task Force? |
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Definition
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Term
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Definition
| material misstatement, misrepresentation, or omission relating to the property or potential mortgage relied on by an underwriter or lender to fund, purchase, or insure a loan. |
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Term
| What does the FBI use to compile data on mortgage fraud? |
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Definition
| Suspicious Activity Reports (SARs) |
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Term
| __% of all fraud reported losses involve collaboration or collusion by industry insiders. |
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Definition
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Term
| What is a quitclaim deed? |
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Definition
| a legal instrument by which the owner of a piece of real property, called the grantor, transfers his or her interest to a recipient, called the grantee |
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Term
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Definition
| a form of illegal property flipping where a buyer and seller repetitively transfer ownership to create fictitious equity. |
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Term
| What is a "silent second" |
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Definition
| A scheme where house sellers accept second mortgages as part of a sale transaction without the full knowledge of the first mortgage lender. |
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