This document discusses mortgage fraud, including an overview of different types of mortgage fraud like fraud for property or profit. It outlines several federal mortgage fraud offenses such as conspiracy, falsifying loan applications, mail fraud, and money laundering. It also covers types of mortgage fraud scams involving income, assets, debt, occupancy, employment, identity, and property valuation. Finally, it discusses risk management for mortgage loan originators and lenders, including red flags and how to avoid fraud.

1. Module 5: Ethics and Fraud Issues, Part 2

2. Module 5: Ethics and Fraud Issues, Part 2
5.1 Overview of Mortgage Fraud
 Fraud for Property or for Profit
 Fraud for Property
 Fraud for Profit
 Mortgage Fraud Perpetrators

3. Module 5: Ethics and Fraud Issues, Part 2
5.1 Overview of Mortgage Fraud
 Federal Mortgage Fraud Offenses
 Conspiracy (18 USC §371)
 Falsifying Loan Applications and Appraisals (18 USC §1010 and §1014)
 Fraud in Connection With Identification Documents (18 USC §1028)
 Mail Fraud and Wire Fraud (18 USC §1341, §1343)
 Mail Fraud
 Wire Fraud
 Bank Fraud (18 USC §1344)
 Money Laundering (18 USC §1956, §1957)
 Penalties for Money Laundering
 Mortgage Fraud Index

4. Module 5: Ethics and Fraud Issues, Part 2
5.2 Types of Mortgage Fraud Scams
 Measures of Fraud Risk on Loan Applications
 Income and Asset Fraud
 Undisclosed Debt Fraud
 Occupancy Fraud
 Employment Fraud
 Identity Fraud
 Property Valuation Fraud
 Inflated Appraisals
 Illegal Property Flipping
 Property Flopping
 Air Loan
 Credit Enhancement Schemes

5. Module 5: Ethics and Fraud Issues, Part 2
5.3 Risk Management
 How MLOs Can Protect Themselves
 Comply with Federal Consumer Protection Laws
 Comply with the SAFE Act
 Complete Loan Applications Accurately
 Comply with Do Not Contact Policies
 Follow Advertising Guidelines
 Avoid Discrimination in Extending Credit
 Avoid Non-Disclosure
 Avoid Misrepresentation
 Lender’s Responsibilities
 Red Flags Lenders Should Look For
 Suspicious Activity Reports

6. Module 5: Ethics and Fraud Issues, Part 2
5.4 Prosecuting Federal Mortgage & Bank Fraud