Ethics · 18% of the SAFE exameasy
Correct answer: A network of investors, an appraiser, and a mortgage broker collude to repeatedly flip properties at fraudulently inflated prices and pocket the loan proceeds
Fraud for profit involves organized schemes by multiple parties — often industry insiders — designed to extract money from lenders or the mortgage system. The coordinated flipping scheme in ",", involving an appraiser and broker generating artificial equity and pocketing proceeds, is the textbook definition. Options A and B are borrower misrepresentations aimed at qualifying for a loan (fraud for housing) — the motive is obtaining a home, not generating illegal profit. "s minimum income requirement" is concealment of a lien, which may be fraud but is not an organized profit-extraction scheme.
CRAM ARCADE has the full NMLS question bank, timed practice exams, focus drills on your weakest category, flashcards and spaced repetition. No credit card.
Start studying free