A borrower admits to an MLO that they inflated their income on the initial application but wants to provide correct information now. What should the MLO do?
Correct Answer
C) Document the admission and consider SAR filing requirements
Even when a borrower voluntarily corrects false information, the initial submission of false income information constitutes mortgage fraud that may require SAR filing. The MLO must document the incident and evaluate whether it meets the threshold for suspicious activity reporting.
Why This Is the Correct Answer
Even when a borrower voluntarily corrects false information, the initial submission of false income information constitutes mortgage fraud that may require SAR filing. The MLO must document the incident and evaluate whether it meets the threshold for suspicious activity reporting.
More Ethics & Fraud Questions
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