Special discounts are available for groups, corporate accounts and students taking multiple courses. To learn more, call us toll-free at: 1-877-211-4523

Bad Loans - Predatory and Fraud New

Course Description

Course Description

Bad Loans will delve into predatory lending practices and common mortgage fraud schemes. Students will learn to identify and avoid predatory lenders’ and fraud perpetrators’ tactics. The course examines the lines on mortgage forms, good faith estimates, fees, discounts, prepayment penalties, and how these items are used by predatory lenders. This course also features valuable information about dealing with issues such as late charges, tax reserves, property insurance, foreclosures, and note modification. Then students will explore popular mortgage fraud schemes and examples from real cases. Fraud tools such as flipping, straw sellers and buyers, “No Doc” loans, silent second mortgages, and false money will also be discussed.

Course Outline:

  • Predatory Lending: Part 1
  • Predatory Lending: Part 2
  • Predatory Lending: Part 3
  • Mortgage Fraud: Part 1
  • Mortgage Fraud: Part 2
  • Mortgage Fraud: Part 3
  • Mortgage Fraud: Part 4

Learning Objectives

  • Describe how to avoid being burned when borrowing money; Discuss how to avoid tricks, scams, plots, schemes and deceptions; Illustrate how unscrupulous lenders get you to sign on the dotted line
  • Explain each line on forms used in mortgage lending; Identify fees & discounts and how they’re used by predatory lenders; Describe the Truth – In – Lending Act; Define prepayment penalties, assumptions, and promissory notes used in mortgage lending
    Illustrate how to communicate with a loan officer;
  • Demonstrate how to deal with issues such as late charges, tax reserves, property insurance, foreclosures, and note modification; List common predatory lending practices; Indicate the borrowers who are more likely to be the target of predatory lending; Identify the areas where scams are more likely to occur; Recognize popular predatory lending techniques
  • Recognize when a property is being illegally flipped; Identify when straw sellers and straw buyers are being used to commit fraud; Interpret the legal use of a quitclaim deed
  • Recognize fraud using shell companies as straw buyers; Predict the need for an escrow account when repairs need to be made to a
    property; Recognize when straw buyers are used to obtain “No Doc” loans; Describe how straw buyers use false ID to obtain forgiving second mortgages; Discuss the importance of disclosing a silent second mortgage
  • Explain how straws obtain false money; Illustrate how fraud occurs without an attorney at closing; Describe how “flipping a neighborhood” works; Recognize fake comparables
  • Evaluate how perpetrators move money out of deals to themselves; Identify when false documents are being used, such as HUD – 1, quitclaim, and security deeds; Discuss how bankruptcy is used to avoid foreclosure

7 lesson assessments
1 post assessment.

Passing Information – % Quizzes % Final Exams: Quizzes 75%, Final 75%

State Requirements

Our real estate CE courses meet the requirements of the Delaware Real Estate Commission (DREC). Take your Delaware real estate continuing education now. Effective in 2012, all Delaware real estate resident licenses and permits expire April 30 of even years and odd years for nonresident licenses and permits. This includes resident and nonresident, active and inactive, and all office permits.

A renewal notice will be mailed containing information on the online license renewal process. DREC requires you to attest to completing the required CE courses to renew your license. The amount of CE and mandatory courses required depends on when your license was issued.



Credit Card Logos
We accept all major credit cards

Features & Benefits

Unlimited Access

Learn what you want at your own pace and on your own schedule.

Comprehensive Catalog

Over 6,000 online compliance training courses, assessments, and exams.

Multimedia Content

Interactive multimedia courses with instant grading and timely reporting.

Expert Instructors

Learn from top experts who are passionate about their field.

Group Discounts

Get great discounts and save with group enrollment.

24x7 Support

24-hour support for any online course via phone, email or live chat.

Trusted by professionals

We are committed to ensuring a better online learning experience for our students. See why thousands of people chose Online Institute of America to satisfy their online training requirements.

Overall, I think the coursework is great. Everything is explained in simple English and the voiceover is wonderful.

— Lori A. Leonard, IBM

Catherine was terrific and answered all of my questions with great professionalism. Great Job!

— Elizabeth D, Student

Needed assistance getting into my account and Kris set me up. Fast helpful service! Thank you.

— Brian T, Kraft Canada

Read more reviews from our students

Have a question about our online training programs?