What is the minimum dollar threshold that typically triggers enhanced scrutiny for potential SAR filing in mortgage transactions?
Correct Answer
D) There is no specific dollar threshold for mortgage fraud SARs
Unlike Currency Transaction Reports which have specific dollar thresholds, SARs for mortgage fraud do not have a minimum dollar threshold. Any suspected fraudulent activity should be reported regardless of the loan amount, as fraud is determined by the nature of the activity, not the dollar amount.
Why This Is the Correct Answer
Unlike Currency Transaction Reports which have specific dollar thresholds, SARs for mortgage fraud do not have a minimum dollar threshold. Any suspected fraudulent activity should be reported regardless of the loan amount, as fraud is determined by the nature of the activity, not the dollar amount.
More Ethics & Fraud Questions
A lender's mobile app prominently displays a 'pre-qualification' feature that asks for minimal information but generates loan amount estimates that are consistently 20-30% higher than what borrowers actually qualify for when they complete full applications. The app includes a disclaimer that estimates are 'subject to full underwriting.' This practice is most likely:
An MLO discovers that multiple loan applications from different borrowers contain identical handwriting in the signature sections, despite different purported signers. The applications were submitted by different real estate agents. What is the most appropriate immediate action?
A mortgage loan originator receives a lead from a real estate agent about a potential borrower. Before calling this consumer, the MLO must:
An MLO tells Asian applicants that they need larger down payments 'because that's what investors prefer for your type of loan,' while telling similarly qualified white applicants that standard down payments are acceptable. This practice represents:
A mortgage company advertises 'Guaranteed approval for all credit types!' but internally has minimum credit score requirements of 580. This advertisement is problematic because it:
People Also Study
Federal Mortgage-Related Laws
23% of exam
General Mortgage Knowledge
23% of exam
Mortgage Loan Origination Activities
25% of exam
Uniform State Test Content
12% of exam
Previous Question
A mortgage advertisement states 'Pre-qualified in minutes!' but the pre-qualification process requires a full credit report, income verification, and asset documentation. This claim is:
Next Question
A self-employed borrower provides tax returns showing significantly higher income than their bank statements reflect in deposits. What should the MLO do FIRST?