EthicsQuestion 338 of 400
A fraudster creates a completely fictitious borrower and property that do not exist, then obtains loan proceeds. This scheme is known as:
a.An air loan
b.A permissible bridge loan
c.A gift of equity
d.A rate-and-term refinance
Explanation
An 'air loan' is a fraud in which the borrower, property, and sometimes the entire transaction are fabricated to extract loan proceeds. A bridge loan, a gift of equity, and a rate-and-term refinance are all legitimate, real transactions, not fabrications.
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