We want to thank everyone who attended our webinar “Red Flags of Fraud.” As promised, below you will find answers to the questions asked during the webinar.

Question 1 – What steps would you take if the signatures did not match?

• Answer – We first suggest contacting your borrower and discussing the discrepancy with them. If you feel the situation warrants special consideration, such as a deliberate case of misrepresentation, you can contact any of the suggested sites we made available during the presentation (local HUD office, Fannie Mae or the FTC). You should retain in your file the steps you took in detecting and addressing the discrepancy.

Question 2 – Does the geographic concentration change when you look at fraud for profit vs. fraud for housing?

• Answer – The geographic concentration can definitely change. An excellent source for information on mortgage loan fraud is through the Financial Crimes Enforcement Network, www.fincen.gov.

Question 3 – The IRS allows an ITIN number for the purpose of an individual to file their tax returns, and illegal aliens who do not have a valid Social Security Number can get these IRS issued ITIN numbers. If we discover this, what are we supposed to do?

• Answer – If you feel the ITIN number may have been misrepresented to you, you can begin by verifying the information through the IRS as well as following the steps we have suggested in reporting any deliberate acts of misrepresentation. If you are unsure whether an ITIN number itself is a valid form of identification, verify with your lender what they will accept.

Question 4 – What do you “actually” do when you find different addresses on documents?

• Answer – We suggest first contacting your borrower and discussing the discrepancy with them. There may be a logical explanation. If you feel the situation warrants special consideration, such as a deliberate case of misrepresentation, you can contact any of the suggested sites we made available during the presentation (local HUD office, Fannie Mae or the FTC). You should retain in your file the steps you took in detecting and addressing the discrepancy.

MetaSource Mortgage offers a comprehensive Red Flag policy, and we can provide one for you quickly and easily.

MetaSource makes reasonable efforts to ensure the accuracy of the answers. MetaSource makes no express or implied warranty of any kind respecting the information presented and assumes no responsibility for errors or omissions. This online chat is not legal advice and should not be used as a substitute for proper professional or legal advice.)

Contact us to learn more about mortgage QC audits and compliance