During a loan application meeting, a borrower who speaks limited English brings their adult child as an interpreter. The MLO notices the child is modifying some of the borrower's responses to make them sound more favorable. What should the MLO do?
Correct Answer
C) Stop the meeting and arrange for a qualified independent interpreter
Under fair lending principles and CFPB guidance, lenders must ensure accurate communication with limited English proficient borrowers. When an interpreter is clearly modifying responses, this compromises the integrity of the application process and could lead to fair lending violations. The MLO should arrange for a qualified, independent interpreter to ensure accurate communication and compliance with fair lending laws.
Why This Is the Correct Answer
Under fair lending principles and CFPB guidance, lenders must ensure accurate communication with limited English proficient borrowers. When an interpreter is clearly modifying responses, this compromises the integrity of the application process and could lead to fair lending violations. The MLO should arrange for a qualified, independent interpreter to ensure accurate communication and compliance with fair lending laws.
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