Final answer:
The type of mortgage fraud that occurs when a loan originator submits and closes one loan application with multiple lenders is the Straw buyer scheme.
Step-by-step explanation:
The correct answer is D) Straw buyer scheme. This type of mortgage fraud occurs when a loan originator submits and closes one loan application with multiple lenders, using different straw buyers to deceive the lenders. Each lender believes they are financing a separate purchase when, in fact, it is the same property.