Loan Fraud Policy

Bennett Capital Partners maintains a zero-tolerance policy regarding mortgage fraud. All borrowers, referral partners, and service providers must comply with federal and state regulations. Fraudulent activity may result in immediate application denial, referral to appropriate authorities, criminal prosecution, and civil liability.

Regulatory Compliance

This policy supports compliance with applicable federal and state requirements, including:

• Truth in Lending Act (TILA) and Regulation Z
• Real Estate Settlement Procedures Act (RESPA) and Regulation X
• SAFE Mortgage Licensing Act
• Fair Credit Reporting Act (FCRA)
• Bank Secrecy Act (BSA) and applicable anti-money laundering requirements
• Fair Housing Act and Equal Credit Opportunity Act (ECOA)
• Consumer Financial Protection Bureau regulations
• Florida mortgage broker licensing requirements

Prohibited Fraudulent Activities

Application Fraud

Income and Employment Misrepresentation

• False employment verification or fabricated pay stubs
• Altered tax returns or W-2 documents
• Overstated income from any source
• Undisclosed employment gaps or job changes
• Failure to disclose all debt obligations

Asset and Financial Fraud

• False bank statements or account balances
• Borrowed down payment funds misrepresented as personal savings
• Undisclosed liabilities or financial obligations
• Gift-fund documentation fraud
• Participation in deceptive credit-repair schemes

Identity and Documentation Fraud

• Use of false Social Security numbers or identification
• Identity theft or borrower impersonation
• Submission of altered or fabricated documents
• Digital manipulation of PDFs or electronic records
• Straw-borrower arrangements

Property Fraud

Occupancy Misrepresentation

• False primary-residence declarations
• Investment properties misrepresented as owner occupied
• Vacation homes classified incorrectly to obtain pricing or underwriting advantages

Valuation and Transaction Fraud

• Collusion with appraisers for inflated valuations
• Property-flipping schemes involving artificial price inflation
• Manipulation of comparable-sales data
• Undisclosed seller concessions, side agreements, or kickbacks

Third-Party Collusion

Professional Service Fraud

• Real estate agent kickback schemes
• Appraiser valuation manipulation
• Attorney or closing-agent document fraud
• Credit-repair company violations
• Fraudulent employment or income-verification services

Verification Procedures

Bennett Capital Partners implements verification protocols appropriate to the transaction and lender requirements.

Income Verification

• Direct employer verification when required
• Bank-statement analysis for eligible self-employed borrowers
• Tax-return verification through permitted transcripts or third-party validation
• Cross-referencing of financial documentation

Asset Verification

• Verification of depository and investment accounts
• Source documentation for large deposits when required
• Gift-letter and donor-fund verification when applicable
• Confirmation of eligible investment accounts through custodians or acceptable statements

Property Verification

• Independent appraisal requirements
• Property-inspection protocols when applicable
• Title search and ownership verification
• Occupancy confirmation procedures

Identity Verification

• Multi-source identity authentication
• Credit-report consistency review
• Additional due diligence for higher-risk transactions
• Social Security number or taxpayer-identification verification as applicable

Red Flag Indicators

Additional scrutiny may be required when a transaction includes:

• Material income increases without clear documentation
• Recent large deposits without adequate source verification
• Property values materially above supported market data
• Reluctance to provide required documentation
• Unusually rushed transaction timelines without a valid explanation
• Inconsistent information across application documents
• Unusual patterns of recent mortgage credit inquiries
• Employment history or job changes that conflict with the application

Consequences of Fraud

Criminal Penalties

Mortgage fraud may result in federal or state prosecution, imprisonment, fines, restitution, and asset-forfeiture proceedings. Penalties depend on the facts, statutes, jurisdiction, and findings of the appropriate authorities.

Civil Liability

Participants may face civil damages, legal costs, injunctive relief, professional discipline, license consequences, and exclusion from future industry participation.

Immediate Transaction Consequences

• Application denial or loan cancellation
• Escalation to the lender, investor, compliance personnel, or appropriate authorities
• Fraud alerts or reporting where legally required
• Civil action for damages or losses

Reporting Suspicious Activity

Bennett Capital Partners maintains procedures for escalating and reporting suspected fraud in accordance with applicable law, lender requirements, and regulatory guidance. Reports may be made to appropriate federal, state, local, investor, insurer, licensing, or law-enforcement authorities when required or permitted.

Borrower Responsibilities

All loan applicants must:

• Provide complete and accurate information on all application documents
• Disclose all required income sources, assets, liabilities, occupancy information, and transaction terms
• Report material changes in financial circumstances during processing
• Cooperate with lawful verification procedures
• Acknowledge the potential consequences of fraudulent statements or documents

By submitting information, borrowers certify that it is true and complete to the best of their knowledge, that documents are genuine and unaltered, and that the stated occupancy and transaction terms are accurate.

Third-Party Provider Requirements

Referral partners and service providers are expected to:

• Maintain required professional licenses and insurance
• Comply with applicable federal and state requirements
• Maintain appropriate fraud-prevention controls
• Report suspected misconduct promptly
• Provide accurate, independent, and unbiased professional services

Technology and Security Measures

Bennett Capital Partners may use document-authentication tools, identity-verification systems, fraud-detection controls, secure transmission protocols, access controls, monitoring, and security reviews appropriate to the services provided.

Data Protection

• Secure transmission and storage of sensitive documents
• Identity-theft prevention and authentication controls
• Incident-response and breach-notification procedures when applicable
• Cybersecurity monitoring and access management

Quality Control Procedures

Quality-control procedures may include pre-funding review of higher-risk files, post-closing sampling, early-payment-default review, investor and lender compliance checks, audit trails, verification-document retention, incident reporting, and corrective action.

Consumer Protection

Borrower Education

• Fraud-prevention information
• Identity-theft protection resources
• Information regarding applicable consumer rights
• Referrals to appropriate financial-literacy or counseling resources when available

Fair Lending Commitment

• Equal treatment without regard to protected characteristics
• Transparent and consistently applied brokerage procedures
• Reasonable accommodations as required by law
• Language assistance when available and appropriate

Regulatory Examination Compliance

Bennett Capital Partners maintains records appropriate for regulatory examinations, cooperates with authorized regulators, implements required corrective action, and monitors compliance with applicable requirements.

Policy Updates

This policy is reviewed periodically and may be updated to reflect changes in law, regulatory guidance, lender requirements, technology, and industry practices.

Current version effective: July 3, 2025

Contact Information

For fraud reporting or compliance questions:

Borrower Acknowledgment

By submitting a loan application, borrowers acknowledge that they are responsible for providing accurate and complete information, understand that submitted information may be verified, and understand that mortgage fraud can result in severe transaction, civil, and criminal consequences.

This policy is intended to protect consumers, lenders, service providers, and the integrity of the mortgage process. It is provided for general informational and compliance purposes and does not constitute legal advice.