On August 16, 2012, the Financial Crimes Enforcement Network (FinCEN) issued an Advisory to highlight activity related to mortgage loan fraud, especially as it pertains to Residential Mortgage Lenders and Originators (RMLOs). The issuance serves to further clarify suspicious financial activity that may require filing Suspicious Activity Reports (SARs).*
The issuance consolidates certain information from previously issued FinCEN reports, and contains examples of common fraud schemes and potential "red flags" for activity related to mortgage loan fraud.
This Advisory, which consolidates certain information from previously issued FinCEN reports, contains examples of common fraud schemes and potential Red Flags for activity related to mortgage loan fraud. Furthermore, the data gathered supports the efforts of the Financial Fraud Enforcement Task Force (FFETF), the Treasury’s broader initiative to ensure that U.S. financial institutions are not used as conduits for illicit activity, as well as the OIG’s mortgage fraud initiatives of FinCEN and the Department of Housing and Urban Development (HUD).
IN THIS ARTICLE
Types of Mortgage Loan Fraud
Possible Red Flags
Suspicious Activity Reporting
LENDERS COMPLIANCE GROUP is the first full-service, mortgage risk management firm in the United States specializing exclusively in outsourced mortgage compliance and offering a full suite of services in residential mortgage banking for banks and nonbanks.
*Jonathan Foxx is the President & Managing Director of Lenders Compliance Group