What is 'mortgage fraud' and what are the consequences under Delaware and federal law?
Why Intentional misrepresentation on a mortgage application — inflating income, fabricating employment, or misrepresenting property value Is Correct
Answer B: Intentional misrepresentation on a mortgage application — inflating income, fabricating employment, or misrepresenting property value
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
Key Finance Terms in This Question
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Key Terms to Know
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
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