How many transactions must a person engage in using fraudulent tactics to be considered to have committed a pattern of residential mortgage fraud?

The correct answer is based on the legal definition of what constitutes a pattern of residential mortgage fraud. In many jurisdictions, including North Carolina, a person engages in a "pattern" of mortgage fraud typically after committing five or more fraudulent transactions. This threshold is set to ensure that the actions taken are not isolated incidents but part of a systematic effort to defraud lenders or the mortgage market.

When evaluating mortgage fraud cases, authorities look for a series of transactions that indicate a deliberate and ongoing scheme rather than sporadic or one-off actions. By defining the pattern at five or more transactions, it helps to draw a clear line between accidental or individual mistakes in the mortgage process and intentional, criminal behavior that seeks to exploit the system for economic gain. This establishes a legal basis for prosecution and more severe penalties, reflecting the seriousness of the crime.