The pandemic will be producing loan frauds in large numbers. Many account holders may believe that mortgage payments not made over the last three months will automatically qualify for a forbearance and will be added to the end of the mortgage term. Some nonbank groups are going to be demanding payment or partial payments beginning in September along with the normal monthly mortgage payments. This will cause criminals to return to the 2008 mortgage rescue scams. Desperation breeds rash attempts to save businesses, homes, or other assets that people normally use to maintain their lifestyles. Your institution will lose more money due to fraudulent loans this year than it will to robbery.
This dynamic program will instruct you on how to identify fictitious loan applications and review identification documents. Know the different loan frauds like bust-out schemes, loan kiting, conversion loans, and shot-gunning loan applications. Using actual case studies, we will provide you a new basis to review loan documents for commercial and consumer loans The most important step in preventing loan fraud is training your lending staff on these concepts.
Discussion topics include:
- Internal loan frauds including: fictitious loans, unauthorized loans and employee loan manipulation
- External loan frauds including accountholder and mortgage loan fraud
- How loan fraud is committed and concealed
- “Red flag” indicators of potential loan fraud
- Pro-active solutions: internal controls, quality assurance, and effective auditing