EthicsQuestion 290 of 400
In a fraud-for-profit scheme involving inflated appraisals and quick resales (flipping), who is typically harmed?
a.Only the fraudsters who organize the scheme
b.No one, if the loan is repaid on time
c.Only the appraiser
d.Lenders, legitimate borrowers, and surrounding property owners
Explanation
Fraud-for-profit schemes harm lenders (losses on overstated loans), honest borrowers and communities (distorted values, foreclosures), and neighbors (depressed comps). It is false that no one is harmed or that only a single party bears the cost; the organizers are the perpetrators, not the victims.
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