Rationale for Correct Answer: A draw request is used by construction developers to obtain loan funds for work completed. If lien releases are missing, it suggests subcontractors may not have been paid, and the developer might be misrepresenting completed work—an indicator of loan fraud.
Analysis of Incorrect Options:
A – Omission of personal account statements isn’t unusual for a draw request.
B – Change orders are common in construction projects.
D – Multiple inspection reports support validity, not fraud.
Key Concept: Loan fraud detection through supporting documentation review.
Chosen Answer:
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