EstatePass
Ethics & Fraudmedium18% of exam

A borrower scenario raises a question about fraud red flags and Appraisal Fraud Detection. Which answer should Oakley rely on?

Correct Answer

B) Verify the inconsistency before relying on the document

fraud red flags require verification, documentation, and escalation before reliance. This item uses an exam-style scenario; any file details in the stem are illustrative and the governing rule controls the compliant response. The best answer is "Verify the inconsistency before relying on the document".

Answer Options
A
Proceed based only on borrower preference and document the file later.
B
Verify the inconsistency before relying on the document
C
Rely on sales practice rather than required verification, disclosure, or documentation.
D
Use a manager exception instead of the required federal mortgage rule.

Why This Is the Correct Answer

fraud red flags require verification, documentation, and escalation before reliance. This item uses an exam-style scenario; any file details in the stem are illustrative and the governing rule controls the compliant response. The best answer is "Verify the inconsistency before relying on the document".

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