Financial Crimes Enforcement Network Advisory: Advisory to Financial Institutions on Filing Suspicious Activity Reports Regarding Home Equity Conversion Mortgage Fraud Schemes, April 27, 2010 [open pdf - 66KB]
"The Financial Crimes Enforcement Network (FinCEN), in consultation with the U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General (OIG), is issuing this advisory to highlight reverse mortgage fraud schemes potentially related to the Federal Housing Administration (FHA) Home Equity Conversion Mortgage (HECM) program so that financial institutions may better assist law enforcement when filing Suspicious Activity Reports (SARs). With the recent difficulties within the housing market, the ability of homeowners to access existing home equity quickly through the HECM and other reverse-mortgage programs may be increasing their attractiveness as a target for financial fraud. This advisory contains examples of common fraud schemes and potential 'red flags' for fraudulent activity related to HECMs. To assist law enforcement in its efforts to target this type of fraudulent activity, this advisory also suggests key words for financial institutions to use when completing SARs involving fraud related to the HECM program. Using this additional information, the vigilance of financial institutions together with law enforcement efforts against illicit mortgage-related activities will make an important contribution to the economic recovery of the housing market."
FinCEN Advisory FIN-2010-A005
Financial Crimes Enforcement Network: http://www.fincen.gov