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CRU Exam 2 Questions And Answers (A+Graded)
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CRU Exam 2 Questions And Answers (A+Graded)Choose two. What is the reason the President signed into law the Fraud Enforcement
and Recovery Act of 2009 - FERA? - Answer Crack down on fraud in MTG industry
Expand the Department's of Justice authority to prosecute fraud
Choose three Which of the following GSEs, federal agencies and private companies
provide tools and information to assist mortgage lenders with fraud detection, tracking,
and prevention? - 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.
Choose three. How do legitimate flip sales differ from fraudulent flip sales? - Answer The
fraudulent flip transaction, 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.
Choose two. Which of the following are builder bailout red flags? - Answer Source of
funds in the loan file is suspect
Marketing materials promote "no money down"
,A "buy and bail" fraud can be perpetrated when a borrower: - Answer Chooses to stop
making payments due to the value of the home
Where do most foreclosure specialists typically find their "targets"? - Answer In the
"Notice of Defaults" as recorded in public records
If there are inconsistencies in a file such as mismatch between buyer's age and his
professional level or too far distance to commute or contradictory income/asset
information, etc. that may lead to the fact 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 get verification of employment that has an illegible signature and no title
is given of the person who signed the form, and the employer's address is a P.O. box.
What are some actions you could do to further verify employment? - Solution Check
phone directory for listing physical address of employer
Employment verification should be by telephone using the phone book number and
asking for the Human Resources department
What is a red flag that may appear on asset documentation which could raise the
suspicion that the borrower is a straw purchaser? Choice Bank statements show payroll
deposits via automatic transfer that are inconsistent with employment reported on the
loan application
Why is careful review of the appraisal imperative to fraud deterrence? - Answer
Because most fraud for profit schemes rely on fraudulent appraisals
, Select two. Which of the following would lenders scrutinize by way of background
checks? - Answer Branch managers
Loan officers
Select two. If a borrower provides information to a loan originator, the loan originator
should: - Answer Not accept documentation that cannot be verified as coming directly
from the borrower.
Share all information with your processing and underwriting team especially if there are
concerns about the file.
Select three. Fannie Mae recommends that lenders focus quality control reviews on the
following common sources of loan defects: - Answer Appraisal/value
Occupancy status
Income verification
Select two. Which one of the following websites will help you in property description
review? - Answer Zillow
Realtor.com
One of the ways to identify transactions that involve straw buyers is to: - Answer
Which of the following would be a red flag when analyzing a borrower's assets?
- Large deposits inconsistent with earnings
Which of the following BEST defines a forensic loan audit as it relates to foreclosure
rescue scams?
- A company offers a borrower assistance in uncovering lending violations that occurred
when the borrower's mortgage was originated.
Select two. If the sales contract shows that the seller is a relative, employer or real
estate agent of the borrower, this may be indicative of: - Answer Non-arm's length
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