Loan Officer Practice Exam

In a fraud for property scheme, what is the primary intention of the borrower?

1. To seek real estate ownership

2. To engage in illegal property flipping

3. To collude with others for personal gain

4. To avoid repaying the loan

The correct answer is: To seek real estate ownership

In a fraud for property scheme, the primary intention of the borrower is to seek real estate ownership. This type of fraud typically involves a borrower misrepresenting their financial situation or intentions in order to obtain a loan for purchasing property. The focus is on acquiring ownership of the property, often through deceptive means such as providing false information about income, employment, or assets. While other intentions may be part of the process, such as engaging in illegal property flipping or colluding with others, the main driving force behind such schemes is the desire for property ownership. The fraudulent activities are a means to achieve that goal, rather than the end goal itself. In this context, the avoidance of repayment is usually a consequence of the scheme’s illegality rather than the primary motivation behind seeking the loan.