In a mortgage origination file, an MLO wants to pull a consumer report for curiosity before an application purpose exists. Which action should be taken?
Correct Answer
D) Use consumer reports only for a permissible credit purpose
Lines 76-80; 12 CFR Part 1022 summary. Consumer report use must connect to a permissible purpose, such as evaluating credit eligibility. Therefore, the correct response is "Use consumer reports only for a permissible credit purpose".
Why This Is the Correct Answer
Lines 76-80; 12 CFR Part 1022 summary. Consumer report use must connect to a permissible purpose, such as evaluating credit eligibility. Therefore, the correct response is "Use consumer reports only for a permissible credit purpose".
More Federal Laws Questions
During intake, a borrower sends a written request for information to the servicer-designated address. What is the best compliant response?
Parker is training a new MLO on Fair Housing Act compliance Act compliance. Which statement is accurate?
Hayden is training a new MLO on Homeowners Protection Act PMI rules. Which statement is accurate?
Lane receives conflicting instructions about TRID Loan Estimate timing timing. Which instruction should control?
A branch manager asks about a loan file because a compliance analyst asks why covered mortgage application data is collected. What should happen?
Before closing, the team discovers that a compliance analyst asks why covered mortgage application data is collected. What is the safest compliant answer?
During intake, the loan schedule reaches the automatic PMI termination point. What is the best compliant response?
A renewal specialist is reviewing a mortgage file during a disciplinary-risk review. Which statement correctly handles GLBA privacy requirements?
Indigo receives conflicting instructions about BSA / AML Requirements. Which instruction should control?
Before the loan advances, a sponsorship reviewer must resolve a TILA advertising issue in an MLO sponsorship update. What should happen?
People Also Study
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam