What type of fraud scheme typically involves colluding brokers?

The type of fraud scheme that typically involves colluding brokers is linked financing loan fraud. In this scenario, multiple parties, including brokers, cooperate to manipulate or misrepresent information related to loan applications. They often work together to falsify documentation or create false employment history, thereby qualifying for loans that would ordinarily not be approved. This type of organized fraud can inflate property values or mislead lenders, allowing brokers to profit unjustly.

Linked financing loan fraud distinctly stands out from the other options. Residential loan fraud usually pertains to an individual misrepresenting information on a mortgage application, but it doesn’t necessarily involve multiple brokers colluding in the process. True name fraud involves using the identity of legitimate individuals without their knowledge, which does not require broker collusion. Synthetic fraud schemes consist of creating fictitious identities by combining real and fictitious information, also not primarily reliant on broker collaboration. Thus, the association of colluding brokers specifically aligns with linked financing loan fraud.