FACT Act: Getting to Know the Red Flags Rule

This title is one of the many courses available in the AllRegs Education Package subscription program!

The FACT Act: Getting to Know the Red Flags Rule course provides students with the tools needed to maintain compliance with the FACT Act Red Flags Rule. It covers details on the components of an identity theft program and requirements of a Red Flags Rule program. The course covers detecting red flags in detail, providing job aids for reference. The course also provides actions to take in response to the identification of a possible red flag in a consumer’s file.

What will I learn?

Upon completion of the course, students will be able to:

  • Identify types of identity theft red flags
  • Detect the occurrence of the red flags
  • Respond appropriately to the detected red flags
  • Offer preventative measures

Agenda

During the course the following topics will be covered:

  • Introduction
    • Purpose of the Red Flags Rule
    • Covered accounts
    • Penalties for non-compliance
  • Identifying Red Flags
    • Alerts
    • Suspicious Documents
    • Suspicious Personal Identifying Information
    • Unusual Use of Account
    • Notification – Explicit and Silent
  • Detect Red Flags
    • Ways to check: visual, logical, physical, historical, authentication
    • Red Flag Detection for Mortgage Loan Originators
    • Red Flag Detection for Underwriters
    • Red Flag Detection for Processors
    • Red Flag Detection for Closers/Funders
    • Red Flag Detection for Wholesale/Correspondent Loans
  • Responding to Red Flags
    • Response in a Nutshell
    • Suspicious Activity Report
    • Originator, Underwriter, Processor Role
    • Management Role
    • Reporting a Victim
    • Reporting a Perpetrator
  • Offer Preventative Measures
    • Credit Reports
    • Disclosures

Key Authors

Renee Araujo graduated Cum Laude from the University of Colorado, Colorado Springs with a bachelor’s degree in Economics and received her J.D. from Seton Hall University School of Law in Newark, New Jersey. She is currently an attorney in Jacksonville, Florida. Renee has worked with mortgage compliance for a large national bank, providing guidance on compliance implementation in all areas of mortgage lending. Renee has also represented the mortgage industry on an outside-counsel basis. She has represented clients in pooling and servicing agreements, loan repurchase disputes and mortgage default matters. She is a member of the New Jersey and Florida Bar Associations.

Alison Stokes is a Compliance Officer within the Consumer Lending Division of Union Bank, N.A. She has over 21 years of Compliance, Risk Management, and Residential Lending Management experience and has worked at financial institutions such as Bank of America, WaMu and JP Morgan Chase.

She is an active member of the American Bankers Association and has earned the Certified Regulatory Compliance Manager professional certification. She is passionate about serving the community and volunteers as a mentor to small business owners and entrepreneurs.

She received a Bachelor of Science degree in Biology from the University of California, San Diego, and an MBA from Colorado Technical University; she is currently pursuing a Juris Doctorate degree at Northwestern California University

Course Length

30 mins (approximate)

How it works

Each self-paced, self-study course examines a particular topic, allowing students to hone in on a focused set of learning concepts. Each course is designed with learning objectives, comprehensive course materials, learning reinforcement activities that appeal to various learning styles, real world examples, and, where appropriate, video and/or audio recordings of industry experts.

The final exam is completed online with instant grading, and you can download your industry-recognized certificate of completion after you successfully pass the course. While course completion time varies per student, it will take approximately one hour to complete most courses.

Students have 12 months from the registration date to complete the course. Upon successful completion of the course, students can download their industry-recognized certificate of completion and transcript.

*Restrictions apply. If your staff size exceeds 250, please consider the Enterprise AllRegs Education Package.