Before the team acts on a production meeting, a processor must address TSR Do Not Call Requirements. Which response is most defensible?
Correct Answer
B) Check consent and registry status before calling
Why this is correct: The Telemarketing Sales Rule (TSR) requires companies to check the National Do Not Call Registry and obtain prior express written consent for certain calls before making telemarketing calls. "Check consent and registry status before calling" is the most defensible action because it directly follows this mandatory compliance step. Why the other choices are wrong: "Delay the TSR Do Not Call Requirements step until a later closing disclosure review instead of acting now" is wrong because TSR compliance must be confirmed before calling, not delayed. "Ignore an internal do-not-call request after the borrower shows interest" is wrong because a company must honor its internal do-not-call list immediately. "Treat prior borrower contact as unlimited permission for future calls" is wrong because prior contact does not provide the required consent for future telemarketing calls. Exam tip: For TSR do-not-call rules, always verify consent and registry status before making a telemarketing call. Do not rely on past contact or delay this step.
Why This Is the Correct Answer
The correct response is "Check consent and registry status before calling" because Telemarketing rules limit calling times, registry calls, internal do-not-call handling, and consent.
Why the Other Options Are Wrong
Option A: Delay the TSR Do Not Call Requirements step until a later closing disclosure review instead of acting now.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Option C: Ignore an internal do-not-call request after the borrower shows interest.
Ignore an internal do-not-call request after the borrower shows interest. is not correct because it does not apply the rule tested by this file scenario.
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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