In Order to Prevent Mortgage Fraud,as Between a Bank or Finance

question 29

Essay

In order to prevent mortgage fraud,as between a bank or finance company that is in the business of giving mortgages and the lawyer who acts on the mortgage,who do you think might have a higher duty to ensure that the borrowers are not imposters,and is this the case in the real world?

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Definitions:

Variable Costing

An accounting technique that entails including only the variable costs of production, like direct materials, labor directly involved in manufacturing, and variable factory overhead, into the pricing of products.

Unit Product Cost

The total cost (fixed and variable) incurred to produce, store, and sell one unit of a product.

Net Operating Income

A financial metric that shows how much profit a company generates from its core business operations, excluding expenses from interest and taxes.

Absorption Costing

An accounting practice that includes the total manufacturing costs, which are direct materials, direct labor, and manufacturing overhead (both variable and fixed), in the valuation of a product.