Fraud is generally defined as the “intentional misrepresentation of the truth in order to deceive another.”  Chris Swecker, Assistant Director of the FBI’s Criminal Investigative Division, defines mortgage fraud as any form of “material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan.”

Fraud was a problem for the mortgage industry during the last phase of the real estate bubble.  Fraudulent mortgage activities result in artificially inflated property values, increased foreclosure rates, significant financial losses, and increased consumer costs.  Recently, ratings agencies have found substantial fraud in pools of early default residential mortgage backed securities from vintage 2006.

Before the mortgage meltdown of 2007, industry statistics suggest that one in ten mortgage applications included some form of misrepresentation.  The lack of industry-wide reporting requirements makes estimating the scope of mortgage fraud difficult.  Nevertheless, prosecution of mortgage related fraud is rising dramatically. 

This course will look at:
Types of fraud in mortgage lending
Common roles played by fraud perpetrators
Impact on the real estate and mortgage lending industry
Strategies for brokers and originators on reducing fraud
Mortgage fraud cases in Washington State
An update on the new Distressed Property Law

This course is also approved for Realtor clock hours in Washington through NAMF’s parent company, CE Forward, Inc.

Visit our Schedule page to find a class near you.

End of course evaluations

“An exceptional class, lots of examples and class participation. I learned a number of things I did not know about the mortgage business.  I am anxious to pass the information along to my buyers so that they are more aware and better consumers.”

“Well presented and great interaction.  Instructor was professional and knowledgeable. One of the most fun classes I have been to regarding mortgage and lending information.”

“Mortgage Fraud class was fun and interactive. Time moved fast! Engaging!”

“This class was stimulating and instructive. Many of the issues are well imprinted in my memory because of the dialogue within the class.”

“I enjoyed the interaction between my instructor and classmates.”

“Very enlightening experience. I had no idea how prevalent the big M fraud was in our area but also, this class made me think how easily the motivation to buy and sell a house can corrupt ethical guidelines and harm lenders and consumers.”

“An eye-opener.”

“Really made me think about what is considered fraud from the perspective of a lender.”

“I learned a lot and plan to use this information throughout my career.”

“I learned how to best make myself AND my buyers more aware of the red flags that can lead to being a victim of mortgage fraud.”

“I will be more diligent in taking care of my customers and clients.”

“Great class; easy to understand. Informative with lots of interaction, which keeps us all involved and awake.  I love the energy of the instructor and the classroom vibe!”