Fraud Allegations Clause Samples

Fraud Allegations. FMER shall assist Lender by providing fraud allegations services consistent with and in accordance with the fraud allegations processing documents and procedures set forth in this Section 4.10.3 (“Fraud Allegations Services”). Such services shall be provided as part of the Loan Processing Services. Post-disbursement fraud allegations shall be governed by Section I of the Servicing Guidelines and Appendix B of the Program Guidelines. The purpose of Fraud Allegations Services is to (a) facilitate compliance with credit reporting requirements under the Fair Credit Reporting Act, and (b) make and communicate a final decision on the fraud allegation. Review of fraud allegations received directly from Applicants or Borrowers or from Servicer may include, as determined to be appropriate by FMER: (a) Evaluation and investigation of the fraud allegation affidavit, Loan documents and check images from origination records; (b) If beneficial for an accurate and proper review of a claim, a verbal interview with the alleging party and, if possible, any suspects; (c) If available and if information concerning the bank of first deposit can be obtained by FMER, contact with the bank of first deposit; (d) If beneficial for an accurate and proper review of a claim, contact with law enforcement agencies; (e) Analysis of the allegation, determination as to whether fraud occurred with respect to the Loan, and communication of such determination to Lender and Servicer within three (3) days after such determination; (f) Receipt of and prompt response to follow-up calls or other communications from any Borrowers, Cosigners, victims, or other affected parties (e.g., with respect to complaints of parties remaining obligated with respect to the Loan); (g) Communication to Lender and Servicer of material new issues arising, or evidence received by FMER, after FMER’s determination as to whether fraud occurred with respect to the Loan, which such issues or evidence could alter the determination of FMER or adversely affect Lender or Servicer; (h) If FMER determines that a consumer is a victim of fraud; (i) Delivery of a notification letter to Servicer instructing Servicer to remove the victim from the obligation of the Loan, to cease all collection activity for the victim, to file a fraud claim and to update the victim’s credit bureau report, within three (3) days after such determination; (ii) Delivery of a notification letter to victim and law enforcement (where applicable) within thre...