A compliance review finds that an ad shows an interest rate but omits the APR presentation. What should the MLO do next?
Correct Answer
D) State the rate as an annual percentage rate
Lines 261-265 and 273-277; 12 CFR 1026.24(c). Closed-end credit advertising rules require the finance charge rate to be stated as an annual percentage rate. Therefore, the correct response is "State the rate as an annual percentage rate".
Why This Is the Correct Answer
Lines 261-265 and 273-277; 12 CFR 1026.24(c). Closed-end credit advertising rules require the finance charge rate to be stated as an annual percentage rate. Therefore, the correct response is "State the rate as an annual percentage rate".
More Ethics & Fraud Questions
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Before the team acts on a production meeting, the MLO must address professional conduct standard to Borrowers. Which response is most defensible?
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