What type of scheme is most likely uncovered when a loan package is sold without recourse and the broker is no longer in business?

The scenario described involves the sale of a loan package without recourse, meaning that the lender cannot seek repayment or damages from the broker after the sale, creating a risk that the broker may engage in fraudulent activities since they are shielded from liability. When a broker is no longer in business, this adds an additional layer of complexity, suggesting that the broker may have engaged in questionable practices, such as falsifying documents or misrepresenting the terms of the loans.

Brokered loan fraud specifically pertains to schemes involving brokers who manipulate loan applications, mislead lenders, or engage in other deceptive practices to secure loans for borrowers under false pretenses. Known for exploiting their position, brokers involved in this type of fraud can vanish or declare bankruptcy, leaving uncovered losses from loans that may not have been properly vetted or were entirely bogus.

In contrast, the other types of fraud listed do not align as closely with the characteristics of the scenario. Daisy chain fraud typically involves a series of transactions that create the illusion of legitimate business activity, letter of credit fraud specifically deals with misrepresentations in financing agreements, and money transfer fraud often occurs in the digital sphere without directly connecting to the issues of brokered loans. Therefore, the identification of brokered loan fraud as the correct answer