EthicsQuestion 289 of 400
A fraudster uses a stolen Social Security number and driver's license to apply for a mortgage in someone else's name without their knowledge. This type of fraud is:
a.Identity theft
b.Straw buyer fraud
c.Occupancy fraud
d.Income fraud
Explanation
Using another real person's identifying information without their knowledge or consent to obtain a loan is identity theft. A straw buyer knowingly participates, occupancy fraud concerns residence misrepresentation, and income fraud concerns falsified earnings.
Law Reference: Mortgage fraud (identity theft)Practice all 400 questions free — no signup required.
Related questions on this topic
- An applicant submits altered pay stubs showing $8,000 monthly income when he actually earns $4,000. What type of fraud is this?
- 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 loan officer pressures an appraiser to 'hit' a value $40,000 higher than comparable sales support, so the loan will close. This is best described as:
- In a fraud-for-profit scheme involving inflated appraisals and quick resales (flipping), who is typically harmed?
- A family exaggerates their income slightly so they can qualify to buy a home they intend to live in. This is generally categorized as:
- Which of the following is a classic red flag for possible mortgage fraud on an application?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review