30 Questions
What is the most common type of fraud that occurs when an individual wishes to purchase a home with no intent to abscond with mortgage funds or fraudulently sell the property?
Income inflation to obtain mortgage financing
What is the impact of mortgage fraud on the Mortgage Brokerage industry?
Scaling back products due to high fraud vulnerability
Which step can a Mortgage Agent take to assist in mortgage fraud prevention?
Conducting identity, employment, and income verification
What is a common warning sign of identity fraud according to the content?
Quality of identification not genuine
In what percentage of cases does Fannie Mae report misstatements about liabilities as a factual misstatement under fraud for shelter?
71%
How does mortgage fraud harm the Borrower?
Leads to financial hardships due to unaffordable mortgage
What is considered a warning sign related to the applicant's employment and income?
Inconsistencies between the job letter and pay stubs
Why is it important for the Mortgage Agent to verify the directory listing for the applicant's business?
To confirm if the business exists
What might be a reason for a client insisting on meeting at a location other than the property to be mortgaged?
Convenience
Why is it concerning if an applicant claims to have significant income but lacks assets?
It may indicate financial instability
What action should the Mortgage Agent take if an applicant provides only a cellular phone for contact?
Request a recent utility bill with the applicant's address and name
How can inconsistencies in an applicant's job letter affect their mortgage application?
Affect the loan interest rate
How does the Land Titles Assurance Fund assist homeowners who are victims of fraud?
By providing compensation for financial losses due to land registration errors or omissions
What is a recommended way for consumers to protect themselves from fraud?
Obtaining title insurance for every property purchased
Why is it advised to destroy all personally identifiable documents using a paper shredder?
To prevent criminals from impersonating based on information obtained
What purpose does a home inspection serve for a buyer of a resale home?
To ensure the house was never used as a grow op or drug lab
Why should consumers strive to withdraw cash only from their bank’s ATMs?
To prevent debit card and PIN information theft
In what circumstances have some ATMs outside banks been compromised?
In small gas stations or other stores
What is one of the recommendations for consumers regarding passwords?
Use unique passwords
What have default insurers done to prevent mortgage fraud?
Published materials and conducted seminars on fraud prevention
How has FSRA assisted the industry in preventing fraud?
Created industry checklists and updated licensing requirements
Where can the anti-fraud resources developed by MBRCC be found?
Which of the following is a warning sign of mortgage fraud related to an applicant's assets?
Applicant states significant income but little or no assets
What is recommended for consumers to do with written password information?
Lock it in a secure place
What is a red flag related to the source of down payment according to the text?
Earnest/deposit money isn’t reflected in account withdrawals
Which behavior indicates a lack of loyalty to traditional banking institutions?
Bank statements with unusual dates or out of sequence
What step does OSFI mandate for its regulated entities to prevent fraud?
Conducting income verification and employment status checks
What is a concerning behavior related to the source of earnest/deposit money?
Recently deposited funds without a plausible paper-trail
Which action is NOT suggested by OSFI guidelines to prevent fraud?
Encouraging applicants to maintain excessive checking account balances
What scenario could raise suspicion related to bank statements according to the text?
Dates of bank statements that are unusual or out of sequence
Test your knowledge on a type of fraud where an individual pretends to purchase a home for residence, inflates income to secure a mortgage, and may not afford to repay, leading to financial issues for both the borrower and lender.
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