An MLO is reviewing procedures for a case where a settlement provider asks to be paid for a task it did not actually perform. What is the proper handling?
Correct Answer
C) Pay only for actual, necessary, distinct services performed
Lines 267-269; 12 CFR 1024.14(g). The ethical and legal distinction is payment for real services, not a label or customary amount. Therefore, the correct response is "Pay only for actual, necessary, distinct services performed".
Why This Is the Correct Answer
Lines 267-269; 12 CFR 1024.14(g). The ethical and legal distinction is payment for real services, not a label or customary amount. Therefore, the correct response is "Pay only for actual, necessary, distinct services performed".
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