Which document discrepancy would be the strongest indicator of identity theft?
Correct Answer
C) Photo on ID does not match the applicant
A photo ID that does not match the physical appearance of the applicant is the clearest evidence of identity theft. This indicates someone is using another person's identification documents. Federal regulations require MLOs to verify borrower identity and report suspicious activity.
Why This Is the Correct Answer
A photo ID that does not match the physical appearance of the applicant is the clearest evidence of identity theft. This indicates someone is using another person's identification documents. Federal regulations require MLOs to verify borrower identity and report suspicious activity.
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Previous Question
A borrower provides a credit report that shows no inquiries in the past 12 months, but during the interview mentions recently shopping for auto financing and applying for credit cards. This discrepancy might indicate:
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A real estate agent, appraiser, and loan officer work together to inflate property values and create fake employment documents to help borrowers qualify for larger loans than they can afford. The conspirators split the excess loan proceeds. This scenario describes: