We want to thank everyone who attended our webinar “Red Flags of Fraud.” As promised, below you will find answers to the questions asked during the webinar. You can also download the slides from the webinar.

Question 1 – What steps would you take if the signatures did not match?

• Answer - We first suggest contacting your borrower and discussing the discrepancy with them. If you feel the situation warrants special consideration, such as a deliberate case of misrepresentation, you can contact any of the suggested sites we made available during the presentation (local HUD office, Fannie Mae or the FTC). You should retain in your file the steps you took in detecting and addressing the discrepancy.

Question 2 – Does the geographic concentration change when you look at fraud for profit vs. fraud for housing?

• Answer – The geographic concentration can definitely change.  We provided the following two sources which demonstrated significant concentrations of fraud in specific geographic location:  https://www.efanniemae.com/utility/legal/pdf/fraudstats/fraudupdate0410.pdf and www.fbi.gov/hq/mortgage_fraud.htm.  Another excellent source for information on mortgage loan fraud is through the Financial Crimes Enforcement Network, www.fincen.gov.

Question 3 – The IRS allows an ITIN number for the purpose of an individual to file their tax returns, and illegal aliens who do not have a valid Social Security Number can get these IRS issued ITIN numbers. If we discover this, what are we supposed to do?

• Answer - If you feel the ITIN number may have been misrepresented to you, you can begin by verifying the information through the IRS as well as following the steps we have suggested in reporting any deliberate acts of misrepresentation. If you are unsure whether an ITIN number itself is a valid form of identification, verify with your lender what they will accept.

Question 4 - What do you “actually” do when you find different addresses on documents?

• Answer – We suggest first contacting your borrower and discussing the discrepancy with them.  There may be a logical explanation.   If you feel the situation warrants special consideration, such as a deliberate case of misrepresentation, you can contact any of the suggested sites we made available during the presentation (local HUD office, Fannie Mae or the FTC).  You should retain in your file the steps you took in detecting and addressing the discrepancy.

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MCA offers a comprehensive Red Flag policy, and we can provide one for you quickly and easily.

• Call 877-250-5243 or click an icon under “Contact Us” for more information or to get started.

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(Mortgage Compliance Advisors, LLC (MCA) makes reasonable efforts to ensure the accuracy of the answers. MCA makes no express or implied warranty of any kind respecting the information presented and assumes no responsibility for errors or omissions. This online chat is not legal advice and should not be used as a substitute for proper professional or legal advice.)

We have posted the slides from our May 2010 webinar “Red Flags of Fraud.” If you would like to view or print previous presentations, you can find the slides from all of our past webinars under the News and Resources tab.

As always, we are happy to hear from you and encourage you to submit requests for webinar topics to info@mortgagecomplianceadvisors.com.

• Download the slides for “Red Flags of Fraud”

Check back soon for answers to all the questions asked during the webinar!