An applicant provides an employment letter stating they work remotely for an out-of-state company. When the MLO contacts the company directly, they confirm the employee exists but state the position is unpaid internship, not the $5,000 monthly salary claimed. The original employment letter bears an authentic company letterhead. What fraud technique is evident?
Correct Answer
B) Alteration of legitimate company documentation
The borrower has an actual relationship with the company but has altered legitimate documentation to misrepresent the terms of employment (changing unpaid internship to paid position). This represents sophisticated document alteration fraud using authentic materials.
Why This Is the Correct Answer
The borrower has an actual relationship with the company but has altered legitimate documentation to misrepresent the terms of employment (changing unpaid internship to paid position). This represents sophisticated document alteration fraud using authentic materials.
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An MLO discovers that multiple loan applications from different borrowers contain identical handwriting in the signature sections, despite different purported signers. The applications were submitted by different real estate agents. What is the most appropriate immediate action?
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Previous Question
A mortgage loan originator receives a referral from a past client who provides their friend's phone number. The friend has not given direct consent to be contacted. Under the Telephone Consumer Protection Act (TCPA), what is the MLO's best course of action?
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A loan officer consistently requires additional income documentation from Hispanic applicants that is not required from non-Hispanic white applicants with similar financial profiles. This practice would most likely constitute: