EthicsQuestion 356 of 400
A borrower asks a loan officer to 'leave off' an existing car loan from the application so the debt-to-income ratio looks better. The officer should:
a.Omit it since the borrower requested it
b.Reduce the amount instead of omitting it
c.Refuse and include all known liabilities accurately
d.Ask a coworker to submit it instead
Explanation
Knowingly omitting a real liability to distort the DTI is misrepresentation and mortgage fraud, so the officer must include all known debts accurately. Omitting, understating, or having a coworker submit the false file would each participate in fraud rather than prevent it.
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