A mortgage lender discovers that one of their loan officers has been receiving $100 payments from a title company for each referral. What should the lender do?
Correct Answer
A) Report the violation to CFPB and terminate the loan officer
RESPA Section 8 violations must be addressed immediately. The lender should report the violation to appropriate authorities and terminate the loan officer to prevent further violations and demonstrate compliance commitment.
Why This Is the Correct Answer
RESPA Section 8 violations must be addressed immediately. The lender should report the violation to appropriate authorities and terminate the loan officer to prevent further violations and demonstrate compliance commitment.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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A borrower submits a complete mortgage application on Tuesday at 2:00 PM. When is the latest the lender can deliver the Loan Estimate without violating TRID timing requirements?
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A loan servicer fails to respond to a borrower's qualified written request within the required timeframe. What is the maximum penalty the servicer may face per violation?