Which statement best describes a straw buyer as defined in the material?

Which statement best describes a straw buyer as defined in the material?

• A. A person who commits identity theft against the borrower
• B. A buyer who intends to purchase a property and occupy it
• C. A borrower who has not owned a primary residence in the past three years
• D. A buyer who accepts a fee for his or her Social Security number and other personal information on a mortgage application

Answer: (D)

A straw buyer is someone who uses their own identity and personal information to obtain a mortgage on behalf of another person, usually in exchange for payment. The defining element is that this person provides the information on the loan application for money, effectively acting as the borrower to help someone else secure financing. The statement describing accepting a fee for his or her Social Security number and other personal information on a mortgage application matches this: it captures the compensated use of one person’s identity to facilitate the loan. The other descriptions don’t fit straw buyers: identity theft against the borrower involves stealing the borrower’s information, not using the helper’s own information; occupancy intentions or prior ownership history are not what defines a straw buyer.

A straw buyer is someone who uses their own identity and personal information to obtain a mortgage on behalf of another person, usually in exchange for payment. The defining element is that this person provides the information on the loan application for money, effectively acting as the borrower to help someone else secure financing. The statement describing accepting a fee for his or her Social Security number and other personal information on a mortgage application matches this: it captures the compensated use of one person’s identity to facilitate the loan. The other descriptions don’t fit straw buyers: identity theft against the borrower involves stealing the borrower’s information, not using the helper’s own information; occupancy intentions or prior ownership history are not what defines a straw buyer.