EstatePass
Ethics & Fraudmedium18% of exam

During a training quiz scenario, a training manager encounters an Appraisal Fraud Detection issue. Which response should decide how the file should be documented?

Correct Answer

B) Verify the inconsistency before relying on the document

Fraud red flags require verification, documentation, and escalation before reliance. The best answer is "Verify the inconsistency before relying on the document".

Answer Options
A
Continue the activity because the borrower appears willing to proceed.
B
Verify the inconsistency before relying on the document
C
Ignore the consumer-protection issue unless the borrower complains.
D
Resolve the Appraisal Fraud Detection issue with the HMDA reporting exception that does not fit the facts.

Why This Is the Correct Answer

Fraud red flags require verification, documentation, and escalation before reliance. The best answer is "Verify the inconsistency before relying on the document".

Was this explanation helpful?

More Ethics & Fraud Questions

People Also Study

Related Study Resources

Practice More MLO Questions

Access all practice questions with progress tracking and adaptive difficulty to pass your SAFE MLO exam.

Start Practicing