Loan Fraud Policy
BENNETT CAPITAL PARTNERS LOAN FRAUD POLICY
Mortgage applicants and Loan Officers must be awarer of their actions. Borrowers and Loan Officers are responsible for the content, quality, and accuracy of each application taken and each loan submitted to the lender.
Types of Loan Fraud
1. Submission of inaccurate information, including false statements on the loan application(s) and falsification of documents purporting to substantiate credit, employment, deposit or asset information, personal information including identity, ownership/non-ownership of real property, etc.
2. Forgery of partially or predominantly accurate information.
3. Incorrect statements regarding current occupancy or intent to maintain minimum continuing occupancy as stated in the security instrument or occupancy affidavit.
4. Lack of due diligence by loan officer/interviewer/processor, including failure to obtain all information required by the application and failure to request further information as dictated by Borrower’s response to other questions.
5. The unquestioned acceptance of information and/or documentation that is known, should have been known, or should be suspected to be inaccurate.
a. Simultaneous or consecutive processing of multiple owner-occupied loans from one applicant supplying different information on each application.
b. Allowing an applicant or interested third-party to “assist” with processing the loan.
6. Loan Officer’s non-disclosure of relevant information.
The effect of “Loan Fraud” is costly to all parties involved. Bennett Capital Partners LLC stands behind the quality of its loan origination. Fraudulent loans cannot be sold into the secondary market and, if sold, could require the loan officer or borrower to repurchase. Fraudulent loans damage our reputation with our investors and mortgage insurance providers and can cause suspension and/or termination by its investors. The price paid by those who participate in “Loan Fraud” is even more costly. The following is a list of a few of the potential consequences incurred.
1. Criminal prosecution.
2. Loss of state licensing to perform mortgage loans.
3. Loss of lender/investor access due to exchange of information between lenders, and mortgage insurance companies including submission of information to investors, police agencies, and state regulating agencies.
4. Civil Action by applicant/borrower or other parties to the transaction.
5. Loss of MLO license and funding facilities.