Other times the proprietary questionnaires will answer extra unnecessary questions which the underwriter never asked for, but if they are voluntarily disclosed, the underwriter often cannot pretend they dont see it. 

ie. pretend you are a renter and go  see some units available to rent in the same area etc.   

Buyers like it because they get to pretend to buy a house they wouldn't not otherwise be able to get (It's "pretend" until they are on title no matter what anyone tells you otherwise). 

Some wholesalers ignore the laws or pretend like they have some tricky way around them.

They pretend to compete, but nobody is ever reviewing the arguments they have so conveniently given themselves.

If they are just acting as a lockbox on your first lien payments, which is what you I think you are describing, then I do not see the need for the paper shenanigans of "pretending to loan $282,000" (as you could just do a separate lockbox agreement with them) but I also see no harm in it.  

She reneged on honoring the addendum and had someone pretend to be an attorney.

pretend you don't own the asset.

The best advice I can tell you is to stay away from the big banks (Chase, Wells, BofA, etc) and the lenders that pretend they are affiliated with the VA (USAA, Navy Fed, Veterans United). 

Unfortunately, there are a lot of inexperienced, unprofessional and crooked people out here pretending to be PM's and the investors are taking huge financial hits as a result.