Learning Objectives
- Recognize the six most common mortgage fraud patterns
- Identify a realtor's legal duty to refuse and report
- Explain the difference between fraud-for-housing and fraud-for-profit
- Document a transaction defensively
The Six Patterns
- Straw buyer — someone else's credit, real buyer hides behind them
- Occupancy fraud — claiming primary residence to get better rate / down payment
- Income fraud — fake pay stubs, inflated 1099 income
- Asset fraud — gift letters disguising a loan, seasoned funds that aren't
- Appraisal fraud — collusion to inflate value
- Sweep / dispute fraud — items removed for closing then re-appear
Realtor Exposure
Florida F.S. 817.545 makes mortgage fraud a third-degree felony; federal counterparts (18 U.S.C. § 1014) carry up to 30 years per count. A realtor who 'should have known' can lose their license and be named in restitution.
Defensive Documentation
- Keep written referral records for lender and credit specialist
- Never accept off-system payments or under-the-table credits
- Document occupancy intent in the contract and at handoff
- Refer to credit and lending professionals — do not advise on credit yourself
Key Takeaways
- Fraud-for-housing is still fraud.
- 'Should have known' is the standard, not 'did know.'
- Refer credit and lending questions to licensed professionals.
End-of-Module Exam
Module 10 Exam — 5 questions
Pick the best answer for each question. Pass with 80% or higher to mark this module complete.
- 1.
Occupancy fraud is:
- 2.
A 'straw buyer' is:
- 3.
Florida statute making mortgage fraud a third-degree felony is:
- 4.
A realtor's safe response when a buyer asks how to 'fix' a pay stub is:
- 5.
The realtor's legal standard for fraud knowledge is:
0 of 5 answered