Humber/Ontario Real Estate Course 2 Exam Practice

Which of the following is true about mortgage fraud?

1. Is not a significant factor in the residential market.

2. Can arise from the use of falsified mortgage documents.

3. Is not possible in Ontario, as forged mortgage documents would never be accepted within the property registration system.

4. Is not directly connected to identity theft.

The correct answer is: Is not directly connected to identity theft.

Mortgage fraud can directly connect to identity theft because it involves using false information or someone else's identity to secure a mortgage or property. This fraudulent activity can result in financial loss for lenders and borrowers and can have serious legal consequences. It is essential to be vigilant and ensure that all mortgage documents are authentic and accurate to prevent falling victim to mortgage fraud schemes.