A mortgage team asks a quality-control reviewer about telemarketing and do-not-call controls during a consumer complaint response. Which answer should guide the file?
Correct Answer
C) Call only within permitted local calling hours
Why this is correct: The Telemarketing Sales Rule (TSR) restricts telemarketing calls to specific hours. The permitted calling hours are 8 a.m. to 9 p.m. local time at the called party's location. "Call only within permitted local calling hours" is a direct and required control to comply with this rule. Why the other choices are wrong: "Call without checking consent or registry status" violates the Do Not Call registry and consent requirements. "Treat the Telemarketing Sales Rule review as complete because the file contains a related closing disclosure note" is wrong because a closing disclosure (under TILA-RESPA) is unrelated to telemarketing compliance; each rule set must be satisfied independently. "Treat prior borrower contact as unlimited permission for future calls" is wrong because prior contact does not override Do Not Call registry restrictions or the need for consent for telemarketing. Exam tip: Memorize the telemarketing time window: 8 a.m. to 9 p.m. based on the borrower's local time.
Why This Is the Correct Answer
The correct response is "Call only within permitted local calling hours" because Telemarketing rules limit calling times, registry calls, internal do-not-call handling, and consent.
Why the Other Options Are Wrong
Option A: Call without checking consent or registry status.
Call without checking consent or registry status. is not correct because it does not apply the rule tested by this file scenario.
Option B: Treat the Telemarketing Sales Rule review as complete because the file contains a related closing disclosure note.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Option D: Treat prior borrower contact as unlimited permission for future calls.
Treat prior borrower contact as unlimited permission for future calls. is not correct because it does not apply the rule tested by this file scenario.
Memory Technique
telemarketing and do-not-call controls: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
Match the file facts to telemarketing and do-not-call controls; do not choose an exception or shortcut that skips the required rule.
Common Mistakes to Avoid
- -Choosing an internal exception instead of the governing rule
- -Treating preliminary or informal facts as a substitute for required documentation
- -Answering from a familiar but unrelated mortgage topic
More Ethics & Fraud Questions
In a file escalation meeting, the supervisor sees facts tied to RESPA Kickbacks and Referrals. What should the file reflect?
In a closing-readiness check, a disclosure specialist sees facts tied to Appraisal Fraud Detection. What should the file reflect?
At closing, an MLO adds a single-premium credit-life policy to the loan amount even though the borrower declined it and the policy is not required for approval. Which practice is the clearest concern?
A refinance eliminates a borrower's fixed-rate loan, adds substantial fees, provides no cash or lower payment, and restarts a 30-year term. What should the MLO do before recommending it?
An applicant has verified monthly income of $5,000 and monthly obligations of $4,700 after the proposed mortgage payment. The applicant expects an undocumented raise next year. What should the MLO do?
A lender bases approval entirely on the home's high appraised value and does not verify the borrower's income or existing debts. What is the central compliance concern?
A borrower agrees to a mortgage but declines an optional home-warranty plan. The final loan documents nevertheless finance a $2,400 warranty premium. What should the MLO do?
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?
To obtain approval, an MLO changes a self-employed applicant's verified monthly income from $6,000 to $9,000 without supporting documentation. How should this conduct be characterized?
A homeowner is encouraged to refinance for the third time in 18 months. Each loan generates new points and fees, while the borrower's payment and rate do not improve. Which practice is most strongly indicated?
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