A borrower claims rental income from a property they purchased 8 months ago, providing a lease dated 6 months ago. However, property records show the previous owner had an active lease with the same tenant that expired 2 months before the borrower's purchase. What does this timeline suggest?
Correct Answer
C) Possible backdated lease to inflate rental income history
The timeline shows a gap where no valid lease existed, yet the borrower presents a lease dated during this period. This suggests the lease may be backdated to create artificial rental income history, which is a form of documentation fraud.
Why This Is the Correct Answer
The timeline shows a gap where no valid lease existed, yet the borrower presents a lease dated during this period. This suggests the lease may be backdated to create artificial rental income history, which is a form of documentation fraud.
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Previous Question
A mortgage company receives a consumer's written consent to call their cell phone for marketing purposes. Six months later, the consumer changes their mind and verbally revokes consent during a call. How long does this revocation remain valid?
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A borrower's employment verification shows they work for a company, but when the MLO calls the main company number, the receptionist has never heard of the borrower. However, the direct number on the verification form reaches someone who confirms employment. This situation suggests: