Arizona License Law
Under Arizona law, when a real estate licensee discovers that a buyer client has provided false information on a mortgage application, the licensee should:
AHelp the buyer correct the information before the lender discovers it
BNot participate in or assist with the fraud, and may have a duty to withdraw from the transaction or report the fraud to appropriate authorities✓ Correct
CIgnore the issue as it is between the buyer and lender
DAsk the seller to reduce the price to make the true numbers work
Explanation
Mortgage fraud is a federal crime. An Arizona real estate licensee who assists or remains silent about mortgage fraud is potentially criminally liable as an accessory. The licensee must refuse to participate in the fraud and may be obligated to withdraw from the transaction. In some circumstances, reporting to authorities may be required.
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