A borrower emails on the morning of a 2 pm closing saying the wire instructions have changed to a new bank. How should the closing team verify the unexpected emailed change before sending funds?
Correct Answer
B) Call the borrower on a number already in the file to verify it
Changed wiring instructions arriving by email are the standard form of closing fraud, and the response is to verify by telephone on a number obtained before the email arrived. Other choices: sending funds on the strength of the email is the loss itself; replying to the email reaches whoever sent it, which may be the fraudster; and no 3-day hold period exists, so inventing one delays the closing without verifying anything. Source: Wire fraud at closing and verification practice
Why This Is the Correct Answer
Changed wiring instructions arriving by email are the standard form of closing fraud, and the response is to verify by telephone on a number obtained before the email arrived. Other choices: sending funds on the strength of the email is the loss itself; replying to the email reaches whoever sent it, which may be the fraudster; and no 3-day hold period exists, so inventing one delays the closing without verifying anything. Source: Wire fraud at closing and verification practice
More Origination Questions
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During a post-application update, a quality-control reviewer encounters a Credit Analysis and Evaluation issue. Which response should avoid a shortcut that would misapply the rule?
Between the Loan Estimate and closing, prepaid interest increases $180, homeowner insurance increases $95, transfer taxes increase $40, and a credit report fee for which the consumer could not shop increases $12. There is no valid revised estimate or other exception. Which increases violate TRID's zero-tolerance rule?
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Before closing, the team discovers that a borrower asks which upfront charge can be collected before intent to proceed. What is the safest compliant answer?
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Before releasing the final construction draw, which combination most directly supports project completion and clear collateral?
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A construction-to-permanent note states that conversion requires completion, a certificate of occupancy, and no unresolved liens. Construction is finished, but a mechanic's lien remains. What should happen?
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