Yha - Core B - Mortgage Fraud In The Marketplace Continuing Education Final Exam (25 Questions)

25 Questions | Total Attempts: 63

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Yha - Core B - Mortgage Fraud In The Marketplace Continuing Education Final Exam (25 Questions)

3-Hour Continuing Education Course Final Exam


Questions and Answers
  • 1. 
    Misstatement of income can be a red flag indicating mortgage fraud.
    • A. 

      True

    • B. 

      False

  • 2. 
    According to the FBI, 80 percent of all mortgage fraud losses are due to collaboration of industry insiders.
    • A. 

      True

    • B. 

      False

  • 3. 
    Deception is another word for the term "fraud".
    • A. 

      True

    • B. 

      False

  • 4. 
    A buyer receives $3,000.00 from the seller as compensation for carpet replacement. The payment appears on the HUD 1. This payment could be an indication that mortgage fraud has occurred.
    • A. 

      True

    • B. 

      False

  • 5. 
    A reverse mortgage is a fraudulent scheme designed to hide the buyer's lack of a down payment.
    • A. 

      True

    • B. 

      False

  • 6. 
    Drive-by Appraisals are at the root of most mortgage schemes.
    • A. 

      True

    • B. 

      False

  • 7. 
    If any part of the purchase agreement is hidden from the lender, it is most likely a fraudulent activity.
    • A. 

      True

    • B. 

      False

  • 8. 
    Between 1997 and today, mortgage fraud cases tracked by the FBI have slowly declined.
    • A. 

      True

    • B. 

      False

  • 9. 
    As a result of mortgage fraud in a community, property taxes tend to decline.
    • A. 

      True

    • B. 

      False

  • 10. 
    A lender is unaware that a deed is not in the seller's name. This could be an indication of possible fraud.
    • A. 

      True

    • B. 

      False

  • 11. 
    A seller has owned his property for 20 years and is now planning on selling it. The period of time he has owned the property could be an indication of possible fraud.
    • A. 

      True

    • B. 

      False

  • 12. 
    A seller insists on ordering the appraisal. This could be an indication of possible fraud.
    • A. 

      True

    • B. 

      False

  • 13. 
    Mortgage fraud can occur as a result of innocent processing errors.
    • A. 

      True

    • B. 

      False

  • 14. 
    A recently acquired property is resold for a considerable profit with an artificially inflated price. This is an example of an illegal flip.
    • A. 

      True

    • B. 

      False

  • 15. 
    Reporting fraudulent activities is a good way to help win the war against mortgage fraud.
    • A. 

      True

    • B. 

      False

  • 16. 
    A real estate licensee will not be liable for his role in a fraudulent situation if he is unaware that his actions could be considered fraud.
    • A. 

      True

    • B. 

      False

  • 17. 
    A licensee that is honest and ethical in his business deals significantly reduces his risk of becoming involved in mortgage fraud.
    • A. 

      True

    • B. 

      False

  • 18. 
    Mortgage fraud only occurs with residential properties, so a broker who specializes in commercial real estate does not have to be concerned with it.
    • A. 

      True

    • B. 

      False

  • 19. 
    A seller agrees to pay 3 percent towards the buyer's closing costs at the time of closing. This could be an indication of possible mortgage fraud.
    • A. 

      True

    • B. 

      False

  • 20. 
    Inflated appraisals are at the root of most mortgage fraud schemes.
    • A. 

      True

    • B. 

      False

  • 21. 
    A silent second is a fraudulent scheme designed to hide a buyer's lack of down payment.
    • A. 

      True

    • B. 

      False

  • 22. 
    Writing two contracts with different terms, one for the lender and one for the parties to the transaction is a misdemeanor punishable by a fine not to exceed $10,000.
    • A. 

      True

    • B. 

      False

  • 23. 
    The process by which an investor buys a property at a low price and immediately turns around and sells at a higher price is called "flipping".
    • A. 

      True

    • B. 

      False

  • 24. 
    Mortgage fraud involves schemes to defraud mortgage brokers.
    • A. 

      True

    • B. 

      False

  • 25. 
    Fraud is the intentional nondisclosure of material facts.
    • A. 

      True

    • B. 

      False

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