ANTI FRAUD PROCEDURES

  1. Check social security numbers off all borrowers. Make sure they come back as valid and issued when the person was born. Web sites to check social security numbers are: http://www.usinfosearch.com/Free_ssn_search.htm. and http://www.searchbug.com/peoplefinder/ssn.asp

  2. Check the W-2s and paystubs in the files. Make sure that the FICA withholdings are correct. FICA withholdings should be 6.2% of gross wages. To figure the correct FICA amount, take wages times .062. FICA maxes out at $5,263.80 for 2002, $4,984.80 for 2001 and $4,724.40 for 2000. Amounts should never be higher than the maximum on a W-2 form. Some government agencies do not participate so in limited circumstances there will be no FICA withholdings. Certain deferred salaried accounts will be different. DSA contributions are subject to FICA tax and will be included in boxes 3, 5, and 13 but will not be included in wages reported in box 1.

  3. Check the address on W-2s, paystubs and employment addresses for maildrops. This could be a sign of a fake employer. A searchable database of mail drops can be found at: ttp://www.finaid.org/scholarships/maildropsearch.phtml
  4. Look at the W-2s submitted. Did they submit Copy A or Copy C? Copy A is the one employers send to the IRS and copy C is the employers copy. Is the W-2 typed on a typewriter or handwritten? This may be ok for a small company but usually means fraud if done by a supposed large company.

  5. Examine the bank statements. Does it look like anything was cut and pasted of whited out? Is there any reason the bank statements could be fake?

  6. Check the address on VODs for maildrops. This could be a sign that the bank is fake. A searchable database of mail drops can be found at: http://www.finaid.org/scholarships/maildropsearch.phtml
  7. Run an AVM and see if the value given is within an acceptable range compared to the appraisal. An acceptable range is within 10%.

  8. Make sure there is a 4506 in each file that tax returns are used to qualify. Take the front page of the taxes with a copy of the 4506 to the IRS and have them verify the income information on the front page FROM ALL SOURCES.

  9. Run the employers phone number through the reverse search and see what shows up. Many numbers may not show up but there may be fraud if the borrower lists their employer as a large company and the phone number traces back to a person. Search numbers at: http://skipease.whitepages.com/find_person.pl?fid=p
  10. Phone Verification of Employment - Is there a personal greeting on the answering machine? Does the message give the number but no name of business? Is the only phone number for a salaried person a cell phone or answering service? These things can mean fraud. Always obtain employer phone numbers from 411 or yellow / white pages.

  11. Are any of the following addresses the same: Employer - Borrower - Property (both current and proposed). This doesn't necessarily matter for self-employed people.