A Maryland party takes a fee at a 2026 closing knowing the loan came out of a falsified file. Assuming the required fraudulent intent, can knowingly receiving proceeds from a falsified mortgage transaction constitute mortgage fraud?
Correct Answer
D) Mortgage fraud: receiving such proceeds is itself named
Mortgage fraud includes receiving any proceeds or any other funds in connection with a mortgage closing that the person knows resulted from a violation of the making, producing or using limbs. Other choices: receipt with knowledge is its own limb; timing of the work is not the test; and the provision says proceeds or any other funds. Source: Md. Real Prop. § 7-401(d)(4)
Why This Is the Correct Answer
Mortgage fraud includes receiving any proceeds or any other funds in connection with a mortgage closing that the person knows resulted from a violation of the making, producing or using limbs. Other choices: receipt with knowledge is its own limb; timing of the work is not the test; and the provision says proceeds or any other funds. Source: Md. Real Prop. § 7-401(d)(4)
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