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Fraudulent Loan App - Requires SAR?

Question: 
It has been determined that a customer has fraudulently indicated employment on a loan application. At the time of the application he was employed, but at closing he had been terminated and did not notify the lending officer of his change in status. Other than a SAR, what else should I pursue to report this situation?
Answer: 

You'd typically file a SAR when there is some provable intent to defraud the institution. The time lapse between the completion of the loan application and the closing make this murky. Please contact your institution's legal counsel for assistance -- you need more information even before you file the SAR.

First published on BankersOnline.com 3/14/11

First published on 03/14/2011

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