Final answer:
A mortgage professional can use many techniques to detect fraudulent documents like searching for watermarks, comparing handwriting, and tracking document custody, but notarization doesn't verify document accuracy. To reassure a bank, a borrower can offer detailed income information, submit to credit checks, obtain a cosigner, or provide collateral.
Step-by-step explanation:
The techniques that a mortgage professional can use to detect fraudulent documents include looking for watermarks and printed fraud prevention patterns on bank statements and paystubs, comparing handwriting on an original application and supporting documentation, and tracking the chain of custody on all verifications.
However, requiring that consumers provide only notarized supporting documentation is not specifically a technique to detect fraud, as notarization only verifies the identity of the person signing the document but not the accuracy of the document’s contents.
When dealing with imperfect information about whether the borrower will repay the loan, a bank can look for reassurances like requiring the borrower to fill out forms regarding income sources, conducting a credit check on the individual's past borrowing, demanding a cosigner on the loan, or asking for collateral, such as property or equipment that can be seized if the loan isn't repaid.