Ethics · 18% of the SAFE exameasy
Correct answer: A mortgage made on a nonexistent property or to a fictitious borrower, with no real collateral securing the debt
An air loan is a completely fabricated mortgage — the property may not exist, the borrower may be fictitious, or both. Perpetrators invent all documentation, including fake appraisals, title commitments, and closing statements, to collect loan proceeds. There is literally 'nothing but air' behind the loan. Options A, C, and D all describe real loan products or compliance issues involving actual properties and borrowers.
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