An MLO's laptop containing unencrypted borrower files is stolen from their car. Which action is NOT required under federal privacy regulations?
Correct Answer
C) File a police report about the theft
While filing a police report may be advisable for insurance purposes, it is not specifically required under federal privacy regulations like the Gramm-Leach-Bliley Act. However, breach notification, internal reporting, and documentation are required compliance actions.
Why This Is the Correct Answer
While filing a police report may be advisable for insurance purposes, it is not specifically required under federal privacy regulations like the Gramm-Leach-Bliley Act. However, breach notification, internal reporting, and documentation are required compliance actions.
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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Previous Question
An MLO consistently asks female applicants detailed questions about their family planning intentions and childcare arrangements, while not asking male applicants similar questions. The MLO explains this helps assess 'income stability for long-term loans.' This practice represents:
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Which scenario would most likely constitute disparate treatment discrimination?