EthicsQuestion 287 of 400
An investor with poor credit pays his cousin, who has good credit, to apply for a mortgage and take title, though the investor will make payments and control the property. The cousin is acting as a:
a.Cosigner
b.Guarantor
c.Qualified co-borrower
d.Straw buyer
Explanation
A straw buyer lends their name and credit to obtain a loan for someone else who is the true beneficiary, concealing the real borrower from the lender. A cosigner and guarantor are disclosed parties who genuinely share liability, and a qualified co-borrower actually intends to use and pay for the property jointly and openly.
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