Question

Your client Jacinta is being pressured by her mortgage broker to lie on her loan application. The mortgage broker promises it will make the underwriting process easier, and that it's a normal way to get a better interest rate. Which statement BEST describes the situation

Answer 1

Answer:

This is a red flag for predatory lending AND mortgage fraud.

Explanation:

Considering the situation above, the statement that BEST describes the situation above is that "This is a red flag for predatory lending AND mortgage fraud."

This is because the act of cheating or fraudulent pursuits of some lenders during the loan process is known as predatory lending, in which lying during loan application is part of it.

Also, fraudulent activities such as misstatement, misrepresentation, or omission about a mortgage loan process are considered a mortgage fraud