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Ethics & Fraudmedium18% of exam

A quality-control reviewer flags a case because a settlement provider asks to be paid for a task it did not actually perform. What correction is appropriate?

Correct Answer

D) 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".

Answer Options
A
Treat prior mortgage experience as a substitute for the required compliance condition.
B
Use a generic national checklist instead of the requirement in this license-status check.
C
Document that professional conduct was reviewed, but take no required corrective action.
D
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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