An originator sees a colleague alter 2 bank statements on a file due to close in 5 days. What immediate reporting action should the originator take about the suspected falsification?
Correct Answer
C) Report it internally through the compliance channel that exists
Altered documents are fraud, and the obligation is to report through the compliance function so the company can stop the file and meet its own reporting duties. Other choices: whose file it is does not limit the duty; a private warning leaves the company unaware and the 2 statements possibly still in the file; and waiting for a loss lets a known fraud fund. Source: Duty to report suspected mortgage fraud
Why This Is the Correct Answer
Altered documents are fraud, and the obligation is to report through the compliance function so the company can stop the file and meet its own reporting duties. Other choices: whose file it is does not limit the duty; a private warning leaves the company unaware and the 2 statements possibly still in the file; and waiting for a loss lets a known fraud fund. Source: Duty to report suspected mortgage fraud
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