Which term refers to an international misrepresentation that causes another party to act to their detriment?

The term that refers to an international misrepresentation causing another party to act to their detriment is fraud. Fraud involves deceitful practices that lead one party to make decisions that are harmful to their interests, often based on false information provided by another party. In the context of mortgage lending and finance, this can manifest in various ways, such as deliberately misrepresenting income, assets, or property values to induce a lending decision.

For instance, if a borrower inflates their income on a loan application, they are committing fraud. This fraudulent act not only jeopardizes the relationship between the borrower and the lender once discovered, but it can also lead to significant financial repercussions for the lender and legal consequences for the borrower. Understanding the nuances of fraud is crucial for mortgage professionals, as they need to be able to identify and prevent fraudulent activities in their lending practices.

The other terms listed relate to different concepts: forbearance is a temporary postponement of loan payments, foreclosure is the legal process where a lender takes possession of a property after the borrower defaults, and funding refers to the provision of financial resources for a loan. None of these terms encapsulate the notion of intentional misrepresentation leading to detrimental actions by another party.