CMFC case studies
CMFC · Put your knowledge to work in context.
The Certified Mortgage Fraud Consultant (CMFC) is a professional credential aimed at people who detect, investigate, and prevent fraud in residential mortgage lending. Candidates typically come from mortgage underwriting and quality control, loan review, bank and non-bank compliance, internal audit, fraud investigation units, appraisal review, title and settlement operations, and consulting practices that advise lenders on fraud risk. The exam tests whether you can recognize fraud schemes across the whole loan lifecycle and respond to them in a defensible, evidence-based way. Its eight domains run from fraud fundamentals and origination vulnerabilities through borrower and identity fraud, appraisal and property valuation fraud, schemes involving loan officers, brokers, builders, and settlement agents, red flags and investigative interviewing, investigation and evidence handling, and the regulatory and legal framework. The CMFC case studies are 5 cases and about 3,600 words.
1The Landlord Who Certified Primary Occupancy
Marcus applied for a 612,000 cash-out refinance on a two-unit property, certifying it as his primary residence. The file includes a signed occupancy affidavit, a driver's license showing the property address, and an employer letter confirming he works remotely.
787 words, about 4 min2The Appraisal That Outran the Market
A purchase loan is priced at 485,000 with 10% down. The appraisal comes in at 540,000.
773 words, about 4 min3The Closing Wire That Went to the Wrong Attorney
A lender is closing a 1.35 million purchase of a six-unit apartment building. The settlement agent is a small title agency.
682 words, about 3 min4The Pay Stub That Did Not Match the Tax Transcript
A loan officer submits a 320,000 purchase file. The borrower states monthly income of 7,800.
704 words, about 4 min5The Post-Closing Discovery the CEO Wants to Bury
A mortgage broker's compliance officer discovers that a loan officer altered a borrower's bank statement to show a 45,000 balance instead of 4,500. The loan closed and was sold to an investor 10 days ago.
654 words, about 3 min