A borrower submits a rental agreement showing $2,500 monthly income from a property they claim to own. Which of the following would be the MOST significant red flag indicating potential rental income fraud?
Correct Answer
B) The tenant's signature appears identical to the borrower's signature on other documents
Identical signatures between the supposed tenant and borrower strongly suggest the rental agreement is fabricated. This is a clear indicator of rental income fraud, as legitimate tenants would have distinctly different signatures from the property owner.
Why This Is the Correct Answer
Identical signatures between the supposed tenant and borrower strongly suggest the rental agreement is fabricated. This is a clear indicator of rental income fraud, as legitimate tenants would have distinctly different signatures from the property owner.
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A real estate agent offers an MLO $500 for each borrower the agent refers who successfully closes a loan. How should the MLO respond?
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