Ethics · 18% of the SAFE exameasy
Correct answer: Fraud for housing, because the primary motive is to obtain a home rather than generate illegal profit
Fraud for housing occurs when a borrower misrepresents information primarily to qualify for a loan they otherwise could not obtain — the motive is shelter, not financial gain. Fraud for profit, by contrast, typically involves industry insiders scheming to extract money from the transaction (e.g., inflated appraisals, kickbacks). "Wire fraud, because the application is submitted ele..." is incorrect because the profit motive distinguishes the two categories. "Predatory lending, because the lender should have ve..." (wire fraud) may technically apply if electronic means are used, but it does not describe the fraud type asked about. "Fraud for profit, because any misrepresentation bene..." (predatory lending) refers to lender misconduct, not borrower misrepresentation.
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