Independent Banker - April 2020 - 28

PORTFOLIO
APRIL 28 | 3 ET / 2 CT
Prepare for a
Second Wave™
in Payment
Options
Payment cards made with
Recovered Ocean-Bound Plastic
Featuring:
Jack Jania
VP, Product
Management
and Innovation,
CPI Card Group®
Join us in this webinar for bankers
looking to offer sustainable
payment products to attract
customers, diversify their debit
and credit portfolios and keep
their cards top-of-wallet. Jack
Jania, Vice President of Product
Management and Innovation for
CPI Card Group®
will introduce
cards made with recovered
ocean-bound plastic, present the
latest consumer and financial
insights on sustainability in payments
and take your questions.
Fraud for property
What it is: Generally involves material
misrepresentation or omission of
information with the intent to deceive or
mislead a lender into extending credit that would likely not be off ered if
the true facts were known.
Examples: Asset fraud, occupancy fraud, employment and income
fraud, debt elimination fraud, identity theft and straw buyers
REGISTER TODAY!
To register and view our full
library of free on-demand
webinars, visit the Independent
Banker Webinar Center at
Independentbanker.org
Fraud for profit
What it is: Often committed with the complicity of industry insiders
such as mortgage lenders or brokers, real estate agents, property
appraisers and settlement agents.
Examples: Appraisal fraud, fraudulent flipping, straw buyers and
identity theft
manage SAFE Act compliance programs
to enhance consumer protection
and reduce the potential for lender
fraud. The SAFE Act encourages states
to establish minimum standards for the
licensing and registration of state-licensed
mortgage loan originators.
The SAFE Act requires fi nancial
institutions to adopt written policies
and procedures designed to assure
compliance with the SAFE Act regulation;
conduct annual independent
testing of policies and procedures for
assuring compliance with the SAFE
Act regulation; and ensure any violations
or defi ciencies identifi ed during
the independent testing have been corrected
and that steps have been taken
to ensure they do not recur.
Bank Secrecy Act (BSA) and antimoney
laundering (AML) rules require
fi nancial institutions to monitor for,
prevent and detect fraud in mortgage
transactions that could result from
suspicious activity, customer identifi -
cation practices, source of funds and
other representations.
The BSA requires RMLOs (persons
engaged in the activities of a
Types of mortgage fraud
residential mortgage lender and/
or residential mortgage originator)
to develop and implement a written
AML program designed to prevent the
RMLO from being used to facilitate
money laundering, terrorist activities
or other illegal activities. Further, each
must implement a system to identify
covered transactions and activities and
fi le suspicious activity reports (SARs)
with the Financial Crimes Enforcement
Network (FinCEN).
Constant vigilance required
The activities of third parties acting
with or on behalf of the bank are
subject to the same compliance to regulatory
requirements as the bank for
all covered activities. The federal bank
regulatory agencies require thirdparty
oversight and robust practices to
review information obtained through
third-party providers, including document
misrepresentations, identity
theft, appraiser fraud, escrow practices,
verifi cation of borrower information,
and others. The variety of fraudulent
mortgage schemes is limited only by
the imagination and resourcefulness
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Independent Banker - April 2020

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