Humber/Ontario Real Estate Course 2 Exam Practice

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Prepare for the Ontario Real Estate Exam with our comprehensive Humber Course 2 Exam Practice quiz. Engage with multiple choice questions and detailed explanations, designed to help you excel.

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What is Buyer Leonard doing when he borrows money from his brother without disclosing it to the lender?

Buyer Leonard is committing a form of mortgage fraud
Buyer Leonard is not committing mortgage fraud as it doesn't harm anyone
Buyer Leonard is making a minor inaccurate statement that has no impact
Buyer Leonard is demonstrating identity fraud
Buyer Leonard is following standard lending practices
Buyer Leonard is improving his credit score

The correct answer is: Buyer Leonard is committing a form of mortgage fraud

Buyer Leonard is committing a form of mortgage fraud when he borrows money from his brother without disclosing it to the lender. Mortgage fraud occurs when false information is provided to a lender in order to obtain a mortgage. In this scenario, by not disclosing the additional funds borrowed, Buyer Leonard is misleading the lender about his financial situation and the true source of the funds being used for the purchase. This can have serious legal consequences and is considered fraudulent behavior in the real estate industry.