A borrower's adult child calls asking about their parent's mortgage application because the parent is in the hospital. What should the MLO do?
Correct Answer
C) Explain that information can only be shared with authorized parties and request proper documentation
Family relationships do not automatically authorize access to confidential borrower information. The MLO must follow proper procedures and may only share information with parties specifically authorized by the borrower, such as through a power of attorney or written authorization.
Why This Is the Correct Answer
Family relationships do not automatically authorize access to confidential borrower information. The MLO must follow proper procedures and may only share information with parties specifically authorized by the borrower, such as through a power of attorney or written authorization.
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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A mortgage company wants to send promotional text messages about refinancing to existing customers. Under TCPA rules, what type of consent is required for these text messages?
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Under UDAAP, an abusive practice is characterized by taking unreasonable advantage of a consumer's: