Thread Options
#1742535 - 09/20/12 02:29 PM HELOC FRAUD
2old2care Offline
Platinum Poster
Joined: Oct 2006
Posts: 708
PA
May I have some input on how other institutions handle HELOC Fraud? This is not covered by Reg E because it is not a "deposit" account. The information I am finding on line is that the cuatomer is liable and each financial institution responds to the customer differently. Then there is the SAR consideration for mortgage fraud. Any help would be appreciated.

Return to Top
Lending Compliance
#1742537 - 09/20/12 02:30 PM Re: HELOC FRAUD 2old2care
Skittles Offline
10K Club
Skittles
Joined: Sep 2002
Posts: 13,963
TN
Can you explain a little more about the fraud without going into too much private information. I'm a little unsure how to respond.
_________________________
My Opinions Only

Return to Top
#1742538 - 09/20/12 02:32 PM Re: HELOC FRAUD 2old2care
2old2care Offline
Platinum Poster
Joined: Oct 2006
Posts: 708
PA
Customer received a statement and there was a draw for $2,133.00. They said they did not authorize the draw.

Return to Top
#1742554 - 09/20/12 02:58 PM Re: HELOC FRAUD 2old2care
Skittles Offline
10K Club
Skittles
Joined: Sep 2002
Posts: 13,963
TN
Can you track where the funds went?
_________________________
My Opinions Only

Return to Top
#1742569 - 09/20/12 03:12 PM Re: HELOC FRAUD 2old2care
2old2care Offline
Platinum Poster
Joined: Oct 2006
Posts: 708
PA
We are working on that right now. I think the struggle is our Deposit Operations oversees all REG E claims. This (Loan Fraud) has been put into the hand of loan operations. They are looking for regulations to guide them. Personally I think the process should be assigned to Security and Fraud Prevention.

Return to Top
#1742574 - 09/20/12 03:29 PM Re: HELOC FRAUD 2old2care
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,644
The Swamp
Follow 1026.13, Open-end billing error resolution.

(a) Definition of billing error. For purposes of this section, the term billing error means:

(1) A reflection on or with a periodic statement of an extension of credit that is not made to the consumer or to a person who has actual, implied, or apparent authority to use the consumer's credit card or open-end credit plan.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#1742580 - 09/20/12 03:34 PM Re: HELOC FRAUD 2old2care
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,605
Galveston, TX
RR is correct. You have to handle this under the Reg. Z error resolution rules.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1742585 - 09/20/12 03:43 PM Re: HELOC FRAUD 2old2care
2old2care Offline
Platinum Poster
Joined: Oct 2006
Posts: 708
PA
Thank you....I was stuck in Reg E

Return to Top

Moderator:  Andy_Z