An applicant believes they were discriminated against on 9 February 2026 and asks how long they have to complain to HUD. What are the ordinary HUD complaint and private civil-action filing periods, subject to applicable tolling rules?
Correct Answer
D) One year to file with HUD, and 2 years to bring a civil action
D. The ordinary periods are one year for HUD and two years for a private civil action. These are different procedures with different filing periods. For repeated or continuing discrimination, the HUD rule measures from the last incident; do not automatically start the clock at the first event. Scope and exceptions: The question expressly reserves applicable tolling. This is not a calculation of a person’s final filing date; continuing conduct and procedural history require separate review. Source: 24 CFR 103.35 — https://www.ecfr.gov/current/title-24/subtitle-B/chapter-I/part-103/subpart-B/section-103.35 HUD/DOJ Joint Statement, question 19 — https://www.justice.gov/crt/us-department-housing-and-urban-development
Why This Is the Correct Answer
D. The ordinary periods are one year for HUD and two years for a private civil action. These are different procedures with different filing periods. For repeated or continuing discrimination, the HUD rule measures from the last incident; do not automatically start the clock at the first event. Scope and exceptions: The question expressly reserves applicable tolling. This is not a calculation of a person’s final filing date; continuing conduct and procedural history require separate review.
Why the Other Options Are Wrong
Option A: No deadline applies, since a discrimination claim never expires
The existence of a discrimination claim does not remove filing limits.
Option B: Three years to file with HUD, matching the general limitation
Three years is not the ordinary HUD period.
Option C: Six months to file with HUD, and 1 year to bring a civil action
These periods understate both ordinary limits.
Exam Tip
Distinguish the HUD complaint route from private litigation.
More Ethics & Fraud Questions
In a closing-readiness check, a disclosure specialist sees facts tied to Appraisal Fraud Detection. What should the file reflect?
An MLO recommends a loan with a low initial payment that will increase sharply in two years. The borrower says retirement income will be fixed and asks whether the payment can change. What is the appropriate response?
An MLO alters a bank statement to make the applicant's account balance appear higher and submits it to underwriting. Which response is appropriate?
A branch manager asks about a loan file because marketing proposes a rate the company is not prepared to offer. What should happen?
A borrower wants cash for necessary home repairs. A proposed refinance provides $15,000 cash but adds $12,000 in costs and extends repayment by 15 years. What is the best next step for the MLO?
Before closing, the team discovers that an ad shows an interest rate but omits the APR presentation. What is the safest compliant answer?
The loan team is resolving Privacy and Confidentiality during a quality-control sample. Which action best fits the rule?
A house last sold for $185,000 in January. In March it changes hands 3 times in 9 days, reaching $410,000, with the same appraiser and the same closing agent on every leg. Assuming the parties colluded to inflate appraisals without improvements to support the higher prices, what fraud scheme does this pattern illustrate?
For closings involving federally related mortgage loans, a title company pays a real estate brokerage $75 for each referred client who closes. The brokerage only passes along the client’s name and number. Does this referral payment comply with RESPA Section 8?
Before closing, the team discovers that a loan officer wants different terms because of a protected applicant characteristic. What is the safest compliant answer?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
A borrower states a $290,000 purchase will be his primary residence, which prices 0.75 points better than an investment property. He signs an occupancy affidavit and rents the house out 5 weeks after closing. If evidence establishes that the borrower intended to rent the property before signing the affidavit, how should the false primary-residence claim be classified?
Next Question
A $264,000 application lists an address the credit report has never shown in 7 years, and the report carries a fraud alert asking that identity be verified by phone. What identity-verification step should the originator take in response to the fraud alert?