If Tony omits a relevant piece of information on a mortgage application, who is legally responsible?

• A. B Tony's Sole Responsibility
• B. D It Is Solely the Client's Responsibility
• C. A Alpha Bank
• D. C Alpha Bank and Tony Jointly

Answer: (C)

When a mortgage application omits a relevant item, the lender bears the legal responsibility because it must perform proper due diligence and verify material information before approving and funding a loan. The borrower is expected to provide accurate, complete information, but the bank has a duty to assess risk, comply with responsible lending standards, and avoid funding based on incomplete data. If the bank approves or advances the loan without obtaining or confirming the full information, it can face legal or regulatory consequences for negligent lending or mis-selling. That’s why Alpha Bank is the responsible party in this scenario.