An MLO discovers that a borrower's bank statements show large, round-number deposits ($5,000, $10,000) occurring monthly for the past three months, but the borrower's pay stubs show much smaller amounts. The borrower claims these are gifts from family. What red flag does this represent?
Correct Answer
A) Potential income fraud or undisclosed debt obligations
Large, regular round-number deposits that don't correlate with documented income may indicate unreported income sources, potential money laundering, or undisclosed debt obligations. This requires additional verification under anti-money laundering and fraud prevention requirements.
Why This Is the Correct Answer
Large, regular round-number deposits that don't correlate with documented income may indicate unreported income sources, potential money laundering, or undisclosed debt obligations. This requires additional verification under anti-money laundering and fraud prevention requirements.
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A borrower emails their MLO asking for a copy of their loan application to be sent to their personal Gmail account instead of the email address used during origination. What should concern the MLO most?