A borrower calls an MLO asking specific questions about SAR filing procedures and whether certain types of documentation irregularities would trigger reports. The borrower claims to be writing an academic paper. What should the MLO do?
Correct Answer
C) Treat this inquiry itself as potentially suspicious and document it
Under BSA regulations, inquiries about SAR filing procedures and detection methods can themselves be considered suspicious activity. MLOs should not discuss specific SAR procedures with customers and should document such inquiries as they may indicate attempts to circumvent detection systems.
Why This Is the Correct Answer
Under BSA regulations, inquiries about SAR filing procedures and detection methods can themselves be considered suspicious activity. MLOs should not discuss specific SAR procedures with customers and should document such inquiries as they may indicate attempts to circumvent detection systems.
More Ethics & Fraud Questions
A lender's mobile app prominently displays a 'pre-qualification' feature that asks for minimal information but generates loan amount estimates that are consistently 20-30% higher than what borrowers actually qualify for when they complete full applications. The app includes a disclaimer that estimates are 'subject to full underwriting.' This practice is most likely:
An MLO discovers that multiple loan applications from different borrowers contain identical handwriting in the signature sections, despite different purported signers. The applications were submitted by different real estate agents. What is the most appropriate immediate action?
A mortgage loan originator receives a lead from a real estate agent about a potential borrower. Before calling this consumer, the MLO must:
An MLO tells Asian applicants that they need larger down payments 'because that's what investors prefer for your type of loan,' while telling similarly qualified white applicants that standard down payments are acceptable. This practice represents:
A mortgage company advertises 'Guaranteed approval for all credit types!' but internally has minimum credit score requirements of 580. This advertisement is problematic because it:
People Also Study
Federal Mortgage-Related Laws
23% of exam
General Mortgage Knowledge
23% of exam
Mortgage Loan Origination Activities
25% of exam
Uniform State Test Content
12% of exam
Previous Question
A mortgage company maintains an internal do-not-call list. How long must consumer requests to be placed on this list be honored?
Next Question
A loan file shows single premium credit life insurance, mortgage disability insurance, and an auto warranty were financed into the loan amount, increasing it by $8,000. The borrower's signed disclosure shows they declined these products, but they appear in the final loan documents. This discrepancy most likely indicates: