An MLO accidentally emails a borrower's financial information to the wrong person. What is the most appropriate immediate action?
Correct Answer
B) Contact the recipient immediately to request deletion and report the incident according to company policy
Privacy breaches must be handled immediately and properly. The MLO should contact the recipient to request deletion of the information, document the incident, and report it according to company policy and applicable regulations.
Why This Is the Correct Answer
Privacy breaches must be handled immediately and properly. The MLO should contact the recipient to request deletion of the information, document the incident, and report it according to company policy and applicable regulations.
More Ethics & Fraud Questions
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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
In fair lending statistical testing, a lender shows a 2% difference in approval rates between white and Black applicants. The lender argues this small difference is not statistically significant and therefore not discriminatory. The regulatory response would MOST likely be:
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A sophisticated fraud scheme involves purchasing distressed properties, making cosmetic improvements, obtaining inflated appraisals, and selling to straw buyers with fraudulent loan applications. The properties are then abandoned. This scheme's primary characteristic indicates: