Finance
A Washington buyer is applying for a loan and provides inaccurate income documentation to qualify for a higher loan amount. This constitutes:
AA borrower error that can be corrected during underwriting
BMortgage fraud — a federal crime that can result in criminal prosecution✓ Correct
CAn acceptable rounding of income figures
DA civil matter handled only by the lender's internal compliance department
Explanation
Providing false or misleading information on a mortgage application is mortgage fraud under federal law (18 U.S.
Related Washington Finance Questions
- In Washington, a buyer who makes a down payment of less than 20% on a conventional loan is typically required to pay PMI, which protects:
- Washington's Home Equity Loan Consumer Protection Act provides borrowers with additional protections for:
- A Washington lender who discovers after loan closing that the borrower misrepresented their income may:
- In Washington, negative amortization occurs when:
- In Washington, which type of mortgage allows the borrower to use the property as collateral without it being in the borrower's name (used for investment purposes)?
- In Washington, which of the following is a 'secondary market' entity that purchases mortgages from primary lenders?
- In Washington, the Federal Home Loan Bank of Seattle (now FHLB Des Moines) serves Washington member banks by:
- A Washington borrower has a conventional loan with a loan-to-value ratio of 82%. The lender will require:
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →