New Jersey License Law
A NJ broker who knowingly assists a buyer in falsifying a mortgage application could be charged with:
AOnly a NJREC violation
BBank fraud under federal law, mortgage fraud under NJ law, and NJREC license revocation✓ Correct
COnly a civil fine
DNo penalty if the borrower signed the application
Explanation
Assisting in falsifying a mortgage application is bank fraud under federal law (18 U.S.
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Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
State-Specific Concepts
License Law
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