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#1995501 - 02/11/15 11:08 PM SAR for False Statement
CRL Offline
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CRL
Joined: Sep 2003
Posts: 579
Dumb question, but do you always file a SAR when you find a loan applicant lied on a loan application? (said he was employed on application but had quit his job the month before application was signed.) Does it matter whether or not we made the loan or if we denied it? And would you check the false statement box or the mortgage loan fraud box on the SAR?

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#1995510 - 02/12/15 12:38 AM Re: SAR for False Statement CRL
Greg Offline
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Joined: May 2004
Posts: 833
Michigan
I tend to file. For all you know he's tried this before and you're filing could be helpful. For sure if he tries it again and the next bank files you're gonna have some splainin to do!
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#1996113 - 02/13/15 08:55 PM Re: SAR for False Statement CRL
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
It is absolutely SARable if the loan application was for $5,000.
Whether they know it or not, they just committed a felony.

18 U.S.C. Section 1014 - False Statements on a Loan or Credit Application

Section covers oral or written false statements or misrepresentations made knowingly on a loan or credit application to an insured bank (e.g., willful overvaluing of land, property, securities, or other assets or the understatement of liabilities). Such statements or misrepresentations must have been capable of influencing the bank’s credit decision. Actual damage or reliance on such information is not an essential element of the offense. The statute applies to credit renewals, continuations, extensions or deferments and includes willful omissions as well as affirmative false statements. Obsolete information in the original loan application is not covered unless the applicant reaffirms the information in connection with a renewal request. The application will trigger the statute even if the loan is not made.

PS - It is a false statement. It would only be mortgage loan fraud if he had obtained the loan, then it would be both.
Last edited by rlcarey; 02/13/15 08:57 PM. Reason: Added a comment
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