Before the loan advances, an audit analyst must resolve an advertising and consumer-protection controls issue in an NMLS filing review. What should happen?
Correct Answer
C) Explain material risks before the borrower proceeds
predatory-lending concerns include unaffordable loans, equity stripping, flipping, and abusive high-cost features. This item uses an exam-style scenario; any file details in the stem are illustrative and the governing rule controls the compliant response. The best answer is "Explain material risks before the borrower proceeds".
Why This Is the Correct Answer
predatory-lending concerns include unaffordable loans, equity stripping, flipping, and abusive high-cost features. This item uses an exam-style scenario; any file details in the stem are illustrative and the governing rule controls the compliant response. The best answer is "Explain material risks before the borrower proceeds".
More Ethics & Fraud Questions
In a mortgage origination file, a title company offers a gift card for each borrower referral. Which action should be taken?
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In a training scenario, a loan officer wants different terms because of a protected applicant characteristic. What action best follows the rule?
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A processor asks how to handle a file where a title company offers a gift card for each borrower referral. Which response is most accurate?
In a training scenario, a title company offers a gift card for each borrower referral. What action best follows the rule?
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