CRU Exam 2 Comprehensive
Study Guide + Exam Questions &
Solutions Graded A+
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,Select two. The Fraud Enforcement and Recovery Act of 2009
(FERA) was signed into law by the President in an effort to: -
Answer: Crack down on fraud in MTG industry
Broaden the Department of Justice's authority to prosecute
fraud
Select three. Which of the following GSEs, federal agencies, and
private companies provide various tools and information to
help mortgage lenders detect, track, and prevent fraud? -
Answer: FBI
Fannie Mae
Lexus Nexus
Collusion - Answer: "A secret agreement or cooperation
especially for an illegal or deceitful purpose."
Non-arm's length transactions - Answer: purchase transactions
in which there is a relationship or business affiliation between
the seller and the buyer of the property
Straw buyers - Answer: loan applicants that are paid by the
fraud "ringleader" to obtain mortgages, thereby disguising the
real identity of the perpetrator.
,Select three. How are legitimate flip sales different from
fraudulent flip sales? - Answer: In fraudulent flip transactions,
the perpetrator has no intention of paying back the loan.
Fraudulent flips involve the transfer of the property in order to
increase loan proceeds.
Loan files from legitimate flippers generally contain true
financial information.
Select two. Which of the following are red flags for builder
bailouts? - Answer: Source of funds in the loan file is
questionable
Marketing materials advertise "no money down"
A "buy and bail" fraud can occur when a borrower: - Answer:
Decides to default on payments because of the value of the
home
In most cases, how do foreclosure specialists track down their
"targets"? - Answer: By reading the "Notice of Defaults" listed
in the public records
, If a file contains inconsistencies such as a mismatch between
the buyer's age and professional level, an unrealistic
commuting distance, or contradictory income/asset
information, it may indicate that: - Answer: There is a straw
buyer applying for the loan
The sales contract should always be compared to the: -
Answer: Appraisal
What would an illegal credit cleaning company suggest that a
consumer do to improve his or her credit? - Answer: Rent a
seasoned "trade line" with a strong history to make the report
look better
Select two. You have a verification of employment form with an
illegible signature and no listed title for the person who signed
it. Additionally the address for the employer is a P.O. box. What
are some things you can do to further verify employment? -
Answer: Check the phone directory for a physical address of the
employer
Perform a verbal verification of employment by using the
phone number listed in the phone book and asking for the
Human Resources department
Study Guide + Exam Questions &
Solutions Graded A+
Professional Academic Assistance Services
Services Offered
• Proctored Exam Assistance
• Online Class Management (Full Course Support)
• Exam Preparation & Study Materials
• Assignments and Coursework Support
• Essay and Research Paper Writing
• Discussion Posts & Responses
• Editing and Proofreading
• Confidential Academic Consultation
Contact Information
Email:
WhatsApp link: https://wa.me/254704846336
Fast Response | Confidential | Reliable Academic
Support
Helping Students Achieve Academic Excellence
,Select two. The Fraud Enforcement and Recovery Act of 2009
(FERA) was signed into law by the President in an effort to: -
Answer: Crack down on fraud in MTG industry
Broaden the Department of Justice's authority to prosecute
fraud
Select three. Which of the following GSEs, federal agencies, and
private companies provide various tools and information to
help mortgage lenders detect, track, and prevent fraud? -
Answer: FBI
Fannie Mae
Lexus Nexus
Collusion - Answer: "A secret agreement or cooperation
especially for an illegal or deceitful purpose."
Non-arm's length transactions - Answer: purchase transactions
in which there is a relationship or business affiliation between
the seller and the buyer of the property
Straw buyers - Answer: loan applicants that are paid by the
fraud "ringleader" to obtain mortgages, thereby disguising the
real identity of the perpetrator.
,Select three. How are legitimate flip sales different from
fraudulent flip sales? - Answer: In fraudulent flip transactions,
the perpetrator has no intention of paying back the loan.
Fraudulent flips involve the transfer of the property in order to
increase loan proceeds.
Loan files from legitimate flippers generally contain true
financial information.
Select two. Which of the following are red flags for builder
bailouts? - Answer: Source of funds in the loan file is
questionable
Marketing materials advertise "no money down"
A "buy and bail" fraud can occur when a borrower: - Answer:
Decides to default on payments because of the value of the
home
In most cases, how do foreclosure specialists track down their
"targets"? - Answer: By reading the "Notice of Defaults" listed
in the public records
, If a file contains inconsistencies such as a mismatch between
the buyer's age and professional level, an unrealistic
commuting distance, or contradictory income/asset
information, it may indicate that: - Answer: There is a straw
buyer applying for the loan
The sales contract should always be compared to the: -
Answer: Appraisal
What would an illegal credit cleaning company suggest that a
consumer do to improve his or her credit? - Answer: Rent a
seasoned "trade line" with a strong history to make the report
look better
Select two. You have a verification of employment form with an
illegible signature and no listed title for the person who signed
it. Additionally the address for the employer is a P.O. box. What
are some things you can do to further verify employment? -
Answer: Check the phone directory for a physical address of the
employer
Perform a verbal verification of employment by using the
phone number listed in the phone book and asking for the
Human Resources department
