Fraud Prevention Best Practices post dave s

Mortgage Screening Process: red flags For Single-Family Mortgage Fraud March 2016 Month 20XX Mortgage Screening Process: red flags for Single-Family Mortgage Fraud March 2016 Page 2 Table of Contents Introduction .. 3 Seller/Servicer Requirements .. 3 red flags .. 4 General red flags .. 4 Mortgage Loan Application .. 4 Credit Report .. 5 Verification of Employment (VOE) (if contained within the loan file) .. 6 Paystubs .. 7 Form W-2/1099 .. 7 Tax 8 Verification of Deposit (VOD) (if contained within the loan file) and Bank Statements .. 10 Appraisal .. 11 Sales Contract .. 12 Escrow/Closing Instructions .. 13 Preliminary Title Report/Title Search .. 13 Funds to Close .. 14 HUD-1/Settlement Statement .. 14 Mortgage Screening Process: red flags for Single-Family Mortgage Fraud Page 3 March 2016 Introduction One key way that underwriters, processors and quality control employees can protect their employers is by identifying documentation that has been altered or contains misrepresentations or other information that might indicate suspicious activity (as defined in the Freddie Mac Single-Family and Multifamily Seller/Servicer Guides).

Please keep in mind that a red flag is not proof of a misrepresentation or fraud; it’s an indicator that something doesn’t make sense or is inconsistent with what is expected. Each individual red flag listed in this document may not be problematic in and of itself, but may warrant additional scrutiny when reviewed together with other red flags.

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  Fraud, Flag, Red flags

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