A mortgage file is paused during a risk-control review because of FTC Telemarketing Sales Rule. Which answer should avoid a shortcut that would misapply the rule?
Correct Answer
B) Call only within permitted local calling hours
Why this is correct: The FTC Telemarketing Sales Rule (TSR) establishes specific restrictions on telemarketing calls. One clear rule is that calls must be made only during permitted calling hours, which are generally 8 a.m. to 9 p.m. local time at the called party's location. "Call only within permitted local calling hours" is a direct application of this rule and avoids a violation. Why the other choices are wrong: Calling without checking consent or registry status is wrong because the TSR requires checking the National Do-Not-Call Registry and honoring company-specific do-not-call requests. Ignoring an internal do-not-call request after the borrower shows interest is wrong because internal requests must be honored even if the borrower previously showed interest. Using the refinance benefit standard to decide the TSR issue is wrong because the TSR has its own specific requirements unrelated to loan benefits. Exam tip: For telemarketing, remember the three key restrictions: time of day, the National DNC Registry, and internal DNC requests.
Why This Is the Correct Answer
The correct response is "Call only within permitted local calling hours" because Telemarketing rules limit calling times, registry calls, internal do-not-call handling, and consent.
Why the Other Options Are Wrong
Option A: Call without checking consent or registry status.
Call without checking consent or registry status. is not correct because it does not apply the rule tested by this file scenario.
Option C: Ignore an internal do-not-call request after the borrower shows interest.
Ignore an internal do-not-call request after the borrower shows interest. is not correct because it does not apply the rule tested by this file scenario.
Option D: Use the refinance benefit standard to decide the FTC Telemarketing Sales Rule issue before confirming the trigger facts.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Memory Technique
telemarketing and do-not-call controls: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
Match the file facts to telemarketing and do-not-call controls; do not choose an exception or shortcut that skips the required rule.
Common Mistakes to Avoid
- -Choosing an internal exception instead of the governing rule
- -Treating preliminary or informal facts as a substitute for required documentation
- -Answering from a familiar but unrelated mortgage topic
More Ethics & Fraud Questions
In a closing-readiness check, a disclosure specialist sees facts tied to Appraisal Fraud Detection. What should the file reflect?
An MLO recommends a loan with a low initial payment that will increase sharply in two years. The borrower says retirement income will be fixed and asks whether the payment can change. What is the appropriate response?
An MLO alters a bank statement to make the applicant's account balance appear higher and submits it to underwriting. Which response is appropriate?
A branch manager asks about a loan file because marketing proposes a rate the company is not prepared to offer. What should happen?
A borrower wants cash for necessary home repairs. A proposed refinance provides $15,000 cash but adds $12,000 in costs and extends repayment by 15 years. What is the best next step for the MLO?
Before closing, the team discovers that an ad shows an interest rate but omits the APR presentation. What is the safest compliant answer?
The loan team is resolving Privacy and Confidentiality during a quality-control sample. Which action best fits the rule?
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For closings involving federally related mortgage loans, a title company pays a real estate brokerage $75 for each referred client who closes. The brokerage only passes along the client’s name and number. Does this referral payment comply with RESPA Section 8?
Before closing, the team discovers that a loan officer wants different terms because of a protected applicant characteristic. What is the safest compliant answer?
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