A processor changes the date on a bank statement from 14 March to 14 April so it falls inside the 60-day window underwriting asked for. How should knowingly changing the statement's date to meet underwriting requirements be classified?
Correct Answer
C) Document fraud: an altered bank statement is a false document in the file
C. Knowingly falsifying the statement date is document fraud. The altered date misrepresents when the balance was documented. Scope and exceptions: The 60-day window is a scenario requirement, not a universal rule. This classification does not prove every element of a particular criminal offense. Source: Mortgage fraud definition and falsified-document case descriptions — https://archives.fbi.gov/archives/news/stories/2005/december/operation-quick-flip-1
Why This Is the Correct Answer
C. Knowingly falsifying the statement date is document fraud. The altered date misrepresents when the balance was documented. Scope and exceptions: The 60-day window is a scenario requirement, not a universal rule. This classification does not prove every element of a particular criminal offense.
Why the Other Options Are Wrong
Option A: Acceptable, because the underlying balances in that bank statement are all true
Accurate balances do not validate the false date.
Option B: Acceptable where the borrower confirms the balances by email afterwards
A borrower’s email does not authenticate the alteration.
Option D: A processing error, to be corrected quietly before the file is submitted
This is intentional, not an accidental processing error.
Exam Tip
Obtain genuine updated evidence instead of changing dates.
More Ethics & Fraud Questions
In a closing-readiness check, a disclosure specialist sees facts tied to Appraisal Fraud Detection. What should the file reflect?
An MLO recommends a loan with a low initial payment that will increase sharply in two years. The borrower says retirement income will be fixed and asks whether the payment can change. What is the appropriate response?
An MLO alters a bank statement to make the applicant's account balance appear higher and submits it to underwriting. Which response is appropriate?
A branch manager asks about a loan file because marketing proposes a rate the company is not prepared to offer. What should happen?
A borrower wants cash for necessary home repairs. A proposed refinance provides $15,000 cash but adds $12,000 in costs and extends repayment by 15 years. What is the best next step for the MLO?
Before closing, the team discovers that an ad shows an interest rate but omits the APR presentation. What is the safest compliant answer?
The loan team is resolving Privacy and Confidentiality during a quality-control sample. Which action best fits the rule?
A house last sold for $185,000 in January. In March it changes hands 3 times in 9 days, reaching $410,000, with the same appraiser and the same closing agent on every leg. Assuming the parties colluded to inflate appraisals without improvements to support the higher prices, what fraud scheme does this pattern illustrate?
For closings involving federally related mortgage loans, a title company pays a real estate brokerage $75 for each referred client who closes. The brokerage only passes along the client’s name and number. Does this referral payment comply with RESPA Section 8?
Before closing, the team discovers that a loan officer wants different terms because of a protected applicant characteristic. What is the safest compliant answer?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
A mortgage file is paused during a risk-control review because of Fraud Prevention. Which answer should apply the requirement without relying on borrower preference?
Next Question
A team member asks about Fraud Prevention in a compliance desk review while trying to identify which rule controls the file. Which response should the supervisor use?