Answer:
Conversion Loans is a fancy term that some questionable loan brokers have created as a well to sell a loan fraud scheme on the unknowing. Often this scam involves the alleged sale of a vehicle to obtain an auto loan at a lower interest rate and to take advantage of the lending policy on secured loans vs an unsecured loan. The fraudster often charges a fee and may submit false information for the borrower. It is not until after the loan has been disbursed does the Institution realize that there is no secure collateral.
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Loan Fraud: Detection and Prevention
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