A borrower's credit report shows a social security number that was issued after the borrower's stated date of birth. The borrower claims this is a clerical error by the Social Security Administration. When does this situation require a SAR filing?
Correct Answer
D) Only if other red flags are present in addition to the SSN discrepancy
While SSN discrepancies can indicate identity theft, they can also result from administrative errors. A SAR should be filed when the SSN discrepancy is combined with other suspicious indicators or when reasonable efforts to verify the explanation are unsuccessful. The totality of circumstances determines whether the activity is suspicious under BSA guidelines.
Why This Is the Correct Answer
While SSN discrepancies can indicate identity theft, they can also result from administrative errors. A SAR should be filed when the SSN discrepancy is combined with other suspicious indicators or when reasonable efforts to verify the explanation are unsuccessful. The totality of circumstances determines whether the activity is suspicious under BSA guidelines.
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Previous Question
A mortgage loan originator discovers that a borrower submitted falsified employment verification documents three months after the loan closed. The MLO's company has already sold the loan to an investor. What is the MLO's primary obligation regarding SAR filing?
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A borrower intentionally omits mentioning a second job that would qualify them for a larger loan amount because they want to avoid the tax implications of reporting the additional income. This scenario represents: