During “Anatomy of a Sting” Craig Weitzel, CFE, Fraud Department Manager for Taylor, Bean & Whitaker Mortgage Corp., urged lenders to work closely with law enforcement officials when setting up a fraud sting. These arrests are important for the industry, not just because they take one more criminal out of the game, but because the publicity they get can deter others from committing mortgage fraud. In addition, stings prevent the financial loss that would otherwise accompany a fraudulent closing and deprive criminals of their profit, which is frequently used as "seed" money for the next fraud. Weitzel urged lenders to have an excuse ready for delaying the closing a day or two to allow law enforcement officers to be prepared. It’s important to coordinate the sting without raising suspicion. More to follow…