7-63 A mortgage loan officer is found to have provided false documentation that resulted in a lower interest rate on a loan approved for one of her friends.The loan was subsequently added to a loan pool,securitized and sold.Which of the following risks applies to the false documentation by the employee?

Question

Quizplus · Accepted Answer

The false documentation provided by the mortgage loan officer falls under the category of operational risk, which refers to the risk of loss resulting from inadequate or failed internal processes, people, and systems, or external events. The falsified documentation can lead to financial loss and damage to reputation for the organization.

7-63 a Mortgage Loan Officer Is Found to Have Provided