WHAT DID YOU LEARN ABOUT REGULATORY COMPLIANCE?
Win the New Apple Watch! There will be a drawing every three months. Each month every person who scores 100% gets their
name placed into the drum for the drawing. This means that it’s possible for one of our readers to have their name placed into
the drum three ( 3) times for each quarterly drawing. A reader who scores 100% on each Quiz during the quarter could have an
advantage over others by having their name placed into the drum 3 times. The winner will be featured with their photo and bio
published in Mortgage Compliance Magazine along with a photo of the prize. Send a copy of this page along with your answers to
1. Most mortgage fraud tends to go
undetected until long after the fact.
2. Common mortgage fraud schemes
include: (Pages 10-14)
A. Air Loan
B. Builder Bailout
C. Foreclosure Rescue
D. All the above.
3. House flipping by itself is a perfectly
legal and common practice, but
when individuals try to hide
behind the practice to artificially
inflate home values and profit, this
behavior makes the list.
4. HECM commonly affects:
A. Low-income borrowers.
B. Minority borrowers.
C. The elderly.
D. A and B.
Circle the best answer to each question based on the articles in this month’s Mortgage Compliance Magazine:
5. “Underwater” borrowers may
attempt a __________________ to
escape a current loan and take
advantage of a new loan on a new
home. (Pages 10-14)
A. Lien replacement.
B. Buyer bailout.
C. Loan consolidation.
D. Property flip.
6. In the run-up to the financial crisis,
false down payments, inflated
income, straw buyers, and loss
mitigation fraud were some of the
more common issues. (Pages 16-20)
7. Best practices to help detect and
prevent mortgage fraud include:
A. Track the timing of suspicious
activity in your fraud management
B. Keep a timeline of changes in
controls or policies that are likely to
impact fraud risk.
C. Track trailing indicators of fraud
risk for trending, including by
origination channel, third-party
originators, loan programs, or loan
purpose (purchase or refinance).
D. A and B.
Company: _____________________________________________________________________________ State: ____________
Phone: _________________________________________ Mobile: _________________________________________________
Send Answers to: Whiz@MortgageComplianceMagazine.Com
8. Ronnie Duke, James Tyson, Jr., and
Lee Farkas are names associated
with: (Pages 30-33)
A. OFAC violations.
C. Prominent mortgage fraud
D. CMS program development.
9. The National Consumer
Assistance Plan (NCAP) includes
_______________ introduced by the
three consumer reporting agencies
Equifax, Experian, and TransUnion.
C. Unfair, Deceptive, or Abusive
Acts or Practices Act (UDAAP)
10. The Transitional Licensing Bill (H.R.
2948) would allow mortgage loan
originators to ‘transition’ from bank
to non-bank mortgage companies in
an abbreviated timeframe.