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
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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?
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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?
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Before closing, the team discovers that a loan officer wants different terms because of a protected applicant characteristic. What is the safest compliant answer?
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