A real estate agent who frequently refers clients asks an MLO to provide a list of recent loan approvals with borrower names and loan amounts for marketing purposes. The agent offers to split referral fees. What should the MLO do?
Correct Answer
C) Refuse to provide any borrower information
Sharing borrower information for marketing purposes violates privacy regulations and potentially creates illegal referral fee arrangements. The MLO must refuse entirely, as this would be an improper disclosure of nonpublic personal information.
Why This Is the Correct Answer
Sharing borrower information for marketing purposes violates privacy regulations and potentially creates illegal referral fee arrangements. The MLO must refuse entirely, as this would be an improper disclosure of nonpublic personal information.
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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Previous Question
A rental property owner provides 12 months of bank deposits allegedly from tenant rent payments, but all deposits are made via mobile check deposit rather than traditional methods. Additionally, the memo lines on all deposited checks show identical handwriting. What red flag does this present?
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An MLO discovers that a colleague has been accepting cash payments from borrowers to overlook documentation discrepancies. The colleague is terminated, but no borrower has suffered financial harm. What is the SAR filing requirement?