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?
Correct Answer
C) Document the findings and initiate internal fraud reporting procedures
Identical handwriting across multiple applications from different borrowers suggests potential fraud involving document falsification. The MLO must document these findings and initiate internal fraud reporting procedures immediately. Contacting the agents could compromise the investigation, and denial without reporting would fail to meet BSA obligations.
Why This Is the Correct Answer
Identical handwriting across multiple applications from different borrowers suggests potential fraud involving document falsification. The MLO must document these findings and initiate internal fraud reporting procedures immediately. Contacting the agents could compromise the investigation, and denial without reporting would fail to meet BSA obligations.
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