Chapter 22 Flashcards
This term refers to fraud committed to obtain the proceeds of the mortgage without the intent to repay the loan:
Select one:
a. Fraud for criminal activities
b. Foreclosure fraud
c. Fraud for shelter
d. Fraud for profit
Correct Answer: Fraud for profit
Rationale: Fraud for profit: Fraud committed to obtain the proceeds of the mortgage without the intent to repay the loan.
Relevant section(s) of the textbook: 22.2 Types of Mortgage Fraud
The correct answer is: Fraud for profit
This term refers to a down payment or a small part of the purchase price made by a purchaser as evidence of good faith:
Select one:
a. Promise to Pay
b. Straw Borrower
c. Earnest Money
d. Air Loans
Correct Answer: Earnest Money
Rationale: Earnest Money: Down payment or a small part of the purchase price made by a purchaser as evidence of good faith.
Relevant section(s) of the textbook: 22.2 Types of Mortgage Fraud
The correct answer is: Earnest Money
This term refers to a misstatement of the value of a property:
Select one:
a. Value Fraud
b. Air Loans
c. Title Fraud
d. Mortgage Fraud
Correct Answer: Value Fraud
Rationale: Value Fraud: A misstatement of the value of a property.
Relevant section(s) of the textbook: 22.2 Types of Mortgage Fraud
The correct answer is: Value Fraud
This term refers to the fraudulent transfer of title of a property:
Select one:
a. Air Loans
b. Mortgage Fraud
c. Title Fraud
d. Value Fraud
Correct Answer: Title Fraud
Rationale: Title Fraud: The fraudulent transfer of title of a property.
Relevant section(s) of the textbook: 22.2 Types of Mortgage Fraud
The correct answer is: Title Fraud
This term refers to mortgage fraud that may be used to fund illegal transactions:
Select one:
a. Fraud for profit
b. Fraud for criminal activities
c. Foreclosure fraud
d. Fraud for shelter
Correct Answer: Fraud for criminal activities
Rationale: Fraud for criminal activities: Mortgage fraud may be committed to further other criminal activities such as the financing of marijuana grow operations, drug labs and money laundering
Relevant section(s) of the textbook: 22.2 Types of Mortgage Fraud
The correct answer is: Fraud for criminal activities
This term refers to a mortgage provided on a property that does not exist:
Select one:
a. Air Loans
b. Value Fraud
c. Mortgage Fraud
d. Title Fraud
Correct Answer: Air Loans
Rationale: Air Loans: A mortgage provided on a property that does not exist.
Relevant section(s) of the textbook: 22.2 Types of Mortgage Fraud
The correct answer is: Air Loans
This term refers to the defrauding of a homeowner using the pretense of assisting to stop a foreclosure or power of sale:
Select one:
a. Fraud for shelter
b. Fraud for profit
c. Foreclosure fraud
d. Fraud for criminal activities
Correct Answer: Foreclosure fraud
Rationale: Foreclosure fraud: The defrauding of a homeowner using the pretense of assisting to stop a foreclosure or power of sale
Relevant section(s) of the textbook: 22.2 Types of Mortgage Fraud
The correct answer is: Foreclosure fraud
This term refers to an individual who is paid to use his or her identity to obtain mortgage financing, or who is a victim of identity theft:
Select one:
a. Straw Borrower
b. Identity Theft
c. Air Loans
d. Money Laundering
Correct Answer: Straw Borrower
Rationale: Straw Borrower: Criminal organizations will often use “straw borrowers” to obtain mortgage financing. A straw borrower is typically an individual who is paid to use his or her identity to obtain mortgage financing, or who is a victim of identity theft. In either case this borrower is not the individual using the mortgage proceeds.
Relevant section(s) of the textbook: 22.2 Types of Mortgage Fraud
The correct answer is: Straw Borrower
This term refers to fraud committed when an individual wishes to purchase a home in which to reside with no intent to abscond with mortgage funds or fraudulently sell the property by misstating or misrepresenting his or her status:
Select one:
a. Fraud for shelter
b. Fraud for criminal activities
c. Fraud for profit
d. Foreclosure fraud
Correct Answer: Fraud for shelter
Rationale: Fraud for shelter: When an individual wishes to purchase a home in which to reside with no intent to abscond with mortgage funds or fraudulently sell the property, by misstating or misrepresenting his or her status
Relevant section(s) of the textbook: 22.2 Types of Mortgage Fraud
The correct answer is: Fraud for shelter
This term refers to the deliberate omission of information, use of misstatements or misrepresentations to obtain, purchase, or fund a mortgage loan:
Select one:
a. Mortgage Fraud
b. Air Loans
c. Value Fraud
d. Title Fraud
Correct Answer: Mortgage Fraud
Rationale: Mortgage Fraud is the deliberate omission of information, use of misstatements or misrepresentations to obtain, purchase, or fund a mortgage loan. Mortgage fraud can be committed by a borrower, criminal organization, or industry participant to obtain mortgage funding, or by a lender’s representative to fund a mortgage loan.
Relevant section(s) of the textbook: 22.1 What is Mortgage Fraud
The correct answer is: Mortgage Fraud
