For example, background checks and psychological questions can be implemented to find out certain behaviors and the interviewees past. Two additional techniques that coincide are to enforce a strict segregation of duties and clear-cut delegation of authority. For the segregation of duty, it separates jobs so that no one employee has a large amount of authority to commit fraud by themselves (Goldmann, 2010). Delegation of authority refers to having different levels of authority approve a portion of the approval process. Techniques include some form of due diligence to do some research, know customers, and to know the documents. Lastly, some techniques can take place after a loan is closed, such as a detailed post-closing quality control. For this, it is good to review the documents to make sure they are authentic and ask for reverifications of employment and sending confirmation letters to the address given to ensure the loan’s ownership (Goldmann, 2010). In addition, it is good to do internal monitoring and do research on loan portfolios. Some examples would be to look at loan demographics and background checks on the loan officers to see if any personal finances to see if there is a conflict of interest between officer and borrower (Goldmann,
For example, background checks and psychological questions can be implemented to find out certain behaviors and the interviewees past. Two additional techniques that coincide are to enforce a strict segregation of duties and clear-cut delegation of authority. For the segregation of duty, it separates jobs so that no one employee has a large amount of authority to commit fraud by themselves (Goldmann, 2010). Delegation of authority refers to having different levels of authority approve a portion of the approval process. Techniques include some form of due diligence to do some research, know customers, and to know the documents. Lastly, some techniques can take place after a loan is closed, such as a detailed post-closing quality control. For this, it is good to review the documents to make sure they are authentic and ask for reverifications of employment and sending confirmation letters to the address given to ensure the loan’s ownership (Goldmann, 2010). In addition, it is good to do internal monitoring and do research on loan portfolios. Some examples would be to look at loan demographics and background checks on the loan officers to see if any personal finances to see if there is a conflict of interest between officer and borrower (Goldmann,