Confidential

MORTGAGE RADIO:MORTGAGE RADIO:

DETECTINGDETECTING FRAUDFRAUD

THURSDAY, APRIL 12, 2007THURSDAY, APRIL 12, 2007

CHERYL HOWECHERYL HOWE

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SPOTTING IDENTITY THEFTSPOTTING IDENTITY THEFT

DOB on application to SSN issue dateDOB on application to SSN issue date

Hawk Alerts on a Credit ReportHawk Alerts on a Credit Report

Out of state Investment PropertiesOut of state Investment Properties

Multiple Property Purchased with no prior HistoryMultiple Property Purchased with no prior History

Conversation with Alleged BorrowerConversation with Alleged Borrower

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RECENT SCAMSRECENT SCAMS

Foreclosure Rescue / Equity SkimmingForeclosure Rescue / Equity Skimming

Falsified Documentation (VODFalsified Documentation (VOD’’s on the increase)s on the increase)

Affinity FraudAffinity Fraud

Strawbuyers Who Were Not Paid as PromisedStrawbuyers Who Were Not Paid as Promised

Inflated Property Values and Investment Scams in Inflated Property Values and Investment Scams in UtahUtah

Condo Conversion with Large Seller ConcessionsCondo Conversion with Large Seller Concessions

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DATA MININGDATA MINING

The production of reports which cause you to ask The production of reports which cause you to ask questions questions –– not reports which provide answers.not reports which provide answers.

Loan ChurningLoan Churning

High FICO High FICO –– Early DefaultEarly Default

Trends for same LTV, Same Loan Amount, Same Trends for same LTV, Same Loan Amount, Same Client and/or Loan OfficerClient and/or Loan Officer

Same comparable used consistently for collateral Same comparable used consistently for collateral valuationvaluation

Out of State Properties for Client and/or Loan Out of State Properties for Client and/or Loan OfficerOfficer

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REVERIFICATION CONTACT INFORMATIONREVERIFICATION CONTACT INFORMATION

Will only do current VOD's. No reverifications done.816-931-8177JP Morgan Retirement

# for cashier check verification800-223-7520JP Morgan Chase Bankverbal verification800-525-3713Janus Capital Groupfax with authorization888-464-3220888-464-0727ING

Will no do any verifications due to Privacy P.800-975-4722HSBC Bank

By mail only with a $10 check. Response can be mailed or faxed back to us.

Fifth Third Bank, Attn: Verification of Deposit, Madisonville Operations Center, MD 1M0C3A, Cincinnati, OH 45263800-972-3030Fifth Third Bank

Will only verify if account exists.800-343-3548Fidelityverbal verification800-387-2331E-Trade24 hours256-532-6538800-239-4357Compass Bank10 days turn time- won't verify bank stmts

Citibank -VOD, Attn: FSOS, 100 Citibank Dr, San Antonio, TX 78245210-357-8249800-627-3999Citibank

Will only verify current balance by mail. Will not verify previous months statements800-435-4000Charles Schwab

Will not verify statements. Will only verify VOD's900-733-5150Bank One

2 business days900-733-5155800-432-1000Bank of AmericaCashier check verification800-217-4038Bank of America - Cashier checks

704-409-0605800-765-4949Banc of America Investment SvcBy mail only with $25 check.

AmSouth Bank, Credit Information, PO BOX 830805, Birmingham, AL 35283205-560-3133205-560-5616AmSouth Bank

3-5 business days757-670-4770800-421-0180American Funds- NYCOMMENTSADDRESSFAXPHONE NAME

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REVERIFICATION CONTACT INFORMATIONREVERIFICATION CONTACT INFORMATION

By fax with authorization. 7-10 business days. Will only mail response back- no fax backs.630-654-2781800-823-2265TCF Bank

Will only verify by phone with the borrower on the line. No written authorization will suffice.800-786-8787Sun Trust Bank

334-517-3166800-734-4667Regions BankWill not do any verifications at all800-544-5445Primerica

Only verified account name and valid account.888-762-2265PNC Bank

Will only verify account holder and if account is open and active.800-500-6328Mission FCU

By fax630-435-8630708-410-4444Mid America BankBy fax only920-738-3495888-464-5463M&I BankWill not do any verifications at all800-363-0530Manulife Financialfax with authorization- 24 hour turn time.773-863-2720866-904-7222Lasalle BankFax with authorization310-643-2083800-854-9846Kinecta Federal Credit UnionBy mail only- $10 fee

Key Bank NA, OH-01-51-0633, 4910 Tiedeman Rd., Brooklyn, OH 44144-2309800-539-2968Key Bank

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REVERIFICATION CONTACT INFORMATIONREVERIFICATION CONTACT INFORMATION

Fax with authorication. 1-3 business day turnaround.626-535-1367888-493-7266Wescom CU

Must use their request form, which is available at: https://www.wellsfargo.com/biz/verification_deposit/quality_control900-329-3557Wells Fargo

Automated system that verifies cashiers checks800-223-7520Washington Mutual

By mail only- $10 fee

ATTN: VOD Dept., PO BOX 1080, Northridge, CA 91328800-788-7000Washington Mutual

$35 check required by MailWachovia

Won't verify anything without the borrower on the line. Written authorization will not suffice.800-523-1188Vanguard

800-872-2657US Bank-NM- personal

Will only do VOD on business accounts. Will not do reverification of bank stmt.800-673-3555US Bank-NM- business acct

By mail only with $10 check. US Bank, Regulatory Research & Reporting, M.L. CN-WP-02RG, 5065 Wooster Pike, Cincinnati, OH 45226866-350-3143800-872-2657US Bank

As of 5/1/06, can no longer verify any inforamtion without borrower on the line.800-354-2351 T Rowe Price

504-255-5199877-968-3778Thrift Savings Plan