It is absolutely SARable if the loan application was for $5,000.
Whether they know it or not, they just committed a felony.
18 U.S.C. Section 1014 - False Statements on a Loan or Credit Application
Section covers oral or written false statements or misrepresentations made knowingly on a loan or credit application to an insured bank (e.g., willful overvaluing of land, property, securities, or other assets or the understatement of liabilities). Such statements or misrepresentations must have been capable of influencing the bank’s credit decision. Actual damage or reliance on such information is not an essential element of the offense. The statute applies to credit renewals, continuations, extensions or deferments and includes willful omissions as well as affirmative false statements. Obsolete information in the original loan application is not covered unless the applicant reaffirms the information in connection with a renewal request. The application will trigger the statute even if the loan is not made.
PS - It is a false statement. It would only be mortgage loan fraud if he had obtained the loan, then it would be both.
Last edited by rlcarey; 02/13/15 08:57 PM. Reason: Added a comment
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