Ethics · 18% of the SAFE exameasy
Correct answer: Fraud for housing, because the borrower's motive is to obtain a home rather than to extract money from the transaction
Fraud for housing occurs when a borrower misrepresents information on a loan application with the goal of obtaining a home they could not otherwise qualify for — not to generate financial gain. Fraud for profit, by contrast, typically involves industry insiders (MLOs, appraisers, attorneys) who manipulate transactions to extract cash or equity. "s motive is to obtain a home rather than to extract..." is incorrect because the borrower's motive is shelter, not profit. "Occupancy fraud, because the borrower intends to liv..." is incorrect because occupancy fraud involves lying about how a property will be used (e.g., claiming a non-owner-occupied property will be a primary residence). "Fraud for profit, because any misrepresentation on a..." is incorrect because identity theft involves using another person's identity, not misrepresenting one's own financial information.
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