EthicsQuestion 286 of 400
An applicant submits altered pay stubs showing $8,000 monthly income when he actually earns $4,000. What type of fraud is this?
a.Income (misrepresentation) fraud
b.Occupancy fraud
c.Appraisal fraud
d.Equity skimming
Explanation
Falsifying or inflating income documents to qualify for a loan is income fraud, a form of misrepresentation of borrower qualifications. Occupancy fraud concerns residence use, appraisal fraud concerns property value, and equity skimming diverts a property's equity or rents from the true owner.
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Related questions on this topic
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- A family exaggerates their income slightly so they can qualify to buy a home they intend to live in. This is generally categorized as:
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