Question: Find a recent case on mortgage fraud (published within the last three years) and answer the following questions:
- What is the background of the case, and how has the history of the mortgage industry led up to the current situation of the organization(s) you are researching?
- How did the mortgage fraud essentially operate? What were the actions of the participants that made it fraud?
- What inherent weaknesses were present in the process to allow the fraud to take place? What internal controls would have prevented the fraud?
- What were some of the red flags that allowed for the detection of the fraud?
Answer: In the review of the mortgage industry history, home values are considered to be high as the housing market continues to be competitive