EthicsQuestion 341 of 400
When income fraud leads a borrower into a loan they truly cannot afford, the MOST directly harmed party is often:
a.The fraud ring only
b.No one, if home prices rise
c.Only the federal government
d.The borrower, who faces default and potential foreclosure
Explanation
Income fraud that places a borrower in an unaffordable loan most directly harms that borrower, who risks default and foreclosure, along with the lender. It is false that no one is harmed if prices rise, that only the government suffers, or that only the fraud ring bears the consequences.
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