A borrower calls to check on their loan application status, but the MLO is unsure if the caller is actually the borrower. What is the most appropriate action?
Correct Answer
B) Ask the caller to verify their identity using information from the loan application
MLOs must verify the identity of callers before discussing confidential loan information. This typically involves asking for specific information that only the borrower would know, such as Social Security number, address, or loan application details.
Why This Is the Correct Answer
MLOs must verify the identity of callers before discussing confidential loan information. This typically involves asking for specific information that only the borrower would know, such as Social Security number, address, or loan application details.
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:
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Previous Question
An MLO receives an application where the borrower's Social Security number was issued after the borrower's stated birth date by 25 years. The borrower explains they were undocumented previously. How should this be handled?
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A lender's fair lending examination reveals that African American applicants are denied at a rate of 25% while white applicants with similar credit profiles are denied at only 10%. This statistical evidence would most likely support a claim of: