A consumer completed a mortgage application with an MLO 15 months ago but did not proceed with the loan. The consumer's number is on the National Do-Not-Call Registry. Can the MLO call this consumer about a new loan product?
Correct Answer
A) Yes, because there is an established business relationship
The TSR provides an established business relationship exception that allows calls within 18 months of an application or purchase. Since the application was completed 15 months ago, the exception still applies.
Why This Is the Correct Answer
The TSR provides an established business relationship exception that allows calls within 18 months of an application or purchase. Since the application was completed 15 months ago, the exception still applies.
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?
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A fair lending examination reveals that a lender's minimum credit score requirement of 680 disproportionately excludes minority applicants compared to non-minority applicants. To defend this practice, the lender must demonstrate that the requirement is:
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