A rental property owner provides 12 months of bank deposits allegedly from tenant rent payments, but all deposits are made via mobile check deposit rather than traditional methods. Additionally, the memo lines on all deposited checks show identical handwriting. What red flag does this present?
Correct Answer
A) Possible self-written checks to simulate rental income
Identical handwriting on memo lines of rental checks, especially when all deposited electronically, suggests the borrower may be writing checks to themselves to fabricate rental income. Legitimate rental payments typically show varied handwriting and payment methods.
Why This Is the Correct Answer
Identical handwriting on memo lines of rental checks, especially when all deposited electronically, suggests the borrower may be writing checks to themselves to fabricate rental income. Legitimate rental payments typically show varied handwriting and payment methods.
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Previous Question
An MLO discovers that a borrower's income documentation contains a forged signature after the loan has already closed. The borrower is current on payments and the loan is performing well. What is the MLO's primary ethical obligation?
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A real estate agent who frequently refers clients asks an MLO to provide a list of recent loan approvals with borrower names and loan amounts for marketing purposes. The agent offers to split referral fees. What should the MLO do?