Any entity granting a loan based on claimed ownership of collateral assets should be technically sophisticated enough to be able to establish that such claim to collateral asset is actually provably true.  Now, if the loan is ONLY partially reliant on such collateral, then it might be a BIG ASS, "so what," people overstate their assets all the time when applying for a loan - even though such lying could cause for cancelling of the loan or changing of the loan terms.  If here are other assets that are potential collateral, that are provable or a co-signer then those would all be relevant factors to the lender in determining how to treat such claimed assets and whether the loan is reliant on the actual ownership of such assets.