A person who is paid to use someone else's identification to obtain a loan is referred to as?

The term "straw buyer" describes an individual who is employed to use another person's identity to secure a loan or purchase property. This is often done to obscure the true identity of the real purchaser, sometimes to evade restrictions or regulations that may be in place. In real estate transactions, straw buyers may be involved in fraudulent activities, such as inflating loan amounts or bypassing credit checks. This practice is illegal and poses significant risks to lenders and the integrity of the financial system.

In contrast, a co-borrower is someone who applies for a loan alongside the primary borrower and shares responsibility for repaying the loan, both legally and financially. A proxy buyer typically refers to someone permitted to act on behalf of another in certain business dealings, but not necessarily in the context of fraud. Finally, a nominee is a person designated to act on behalf of another, usually in more legitimate contexts, such as representing someone in business or legal matters. These roles do not encompass the fraudulent connotations associated with a straw buyer.