The document discusses various types of mortgage fraud including: - Puffing, where a seller lists a property for its real value but the buyer wants to purchase it for a higher inflated value. - Investment straw buys, where borrowers are promised payment at closing in exchange for taking out fraudulent loans as part of an alleged investment scheme. - Shot-gunning, where a perpetrator takes out multiple equity lines of credit on a property all at once without lenders knowing about prior liens. - Foreclosure bail-outs, where a perpetrator promises to help a consumer in foreclosure but fraudulently resells the property without the consumer's knowledge.

1. Bear Stearns “Types of Mortgage Fraud” John L. Gray Fraud Prevention

18. Example of Flipping Buyer A buys property from HUD for $10,000 Buyer B buys property from “A” for $100,000 (no rehab) Split $80,000 Bear Res reviews appraisal, Charges off $80,000 Property only worth $10,000 Bear Res approves buyer B for 90 LTV loan