Finance
A Michigan lender discovers after closing that the borrower misrepresented their income on the loan application. The lender's remedies may include:
AOnly reporting the borrower to a credit bureau
BAccelerating the loan (calling it due) and pursuing fraud remedies✓ Correct
COnly adjusting the interest rate upward
DNo remedy since the loan is already closed
Explanation
Mortgage fraud by misrepresenting income is a federal and state crime. Lenders may call the note due for material misrepresentation and pursue civil and criminal remedies for mortgage fraud under state and federal law.
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