A borrower emails their MLO asking for a copy of their loan application to be sent to their personal Gmail account instead of the email address used during origination. What should concern the MLO most?
Correct Answer
C) The request should be verified through a different communication method
Email accounts can be compromised, and requests for document delivery to different addresses should be verified through alternative means (phone call, in-person verification) to ensure the legitimate borrower is making the request and protect against identity theft or fraud.
Why This Is the Correct Answer
Email accounts can be compromised, and requests for document delivery to different addresses should be verified through alternative means (phone call, in-person verification) to ensure the legitimate borrower is making the request and protect against identity theft or fraud.
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:
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Previous Question
An MLO discovers that a borrower's bank statements show large, round-number deposits ($5,000, $10,000) occurring monthly for the past three months, but the borrower's pay stubs show much smaller amounts. The borrower claims these are gifts from family. What red flag does this represent?
Next Question
An MLO uses an autodialer to call consumers but always has a live agent available immediately when the call connects. The calls are made to numbers on the National Do Not Call Registry. What determines if this is a violation?