[Pearls Before Swine]

I didn’t think you had to tell them what the loan was for, either.

Maybe there’s an interest rate differential if you tell them its for improvements on the home, which would have the effect of increasing the home’s value, and their cushion on the loan. If that were so, lying would be a problem.

But there are home equity lines of credit... where you just write yourself a check against the line of credit, and the lender neither knows nor cares.

[Steve_Seattle]

"Maybe there’s an interest rate differential if you tell them its for improvements on the home, which would have the effect of increasing the home’s value, and their cushion on the loan. If that were so, lying would be a problem."

If that's true, Cohen would have to be a fool to go for a lower rate by lying about the purpose of the loan. If you get a line of credit, there are generally no questions asked about what you might use the money for, so Cohen wouldn't have to say, "It's to pay off a blackmailing porn star."