|(...and even if this is not the case, it may be best to consider a few things first.)|
The customer put 30% down and it's a conventional loan. That's a mile apart from a gov insured loan with smaller DP that doesn't allow it to be a 2nd PR. Every case (and State) is different.
What if the customer qualifies for two primary residences? If that concept doesn't fly, it's a likely indicator we're getting too deep.
What if it's an *expanded" family situation wherein the borrower qualifies for two primary residences and just decided in his head (whether correctly or not) he wants to charge the family rent and divulges that to you in a way that appears to be Occupancy Fraud?
There exists as far as the notary is concerned no proof of fraud. It is however a red flag statement and should be reported to the Closing department, who in turn needs to report it to the LO, who in turn needs to do some customer calling if they don't already have a clear answer and perhaps complete a SARS report in accordance with FinCEN and its list of procedures. There are annual courses in this for LOs and staff and you don't want to go there if you don't have to, trust me.
This test question is bogus as a typical notary may not have education on mortgage and occupancy fraud nor knowledge of available loan product and borrower qualification or any BSA/AML/SAR training on FinCEN procedures. Thats a mouthful of acronyms for red flag reporting, and *that* is not a circus any notary should want to be a star in.
It is a classic *common sense* question, where if you don't know the *exact* answer, you pick the *best* answer even if there is more than one right answer.
"If during the appointment the borrower secretly divulges that the property being financed is an investment property, while the loan documents indicate it is for a primary residence, the Notary Signing Agent should:
Best Possible Answer:
3.Complete signing and inform the closing agent afterwards