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Ethics & Fraudmedium18% of exam

Lane receives conflicting instructions about professional conduct and Professional Responsibility. Which instruction should control?

Correct Answer

A) Decline prohibited compensation and document the issue

professional conduct requires honesty, confidentiality, no prohibited compensation, and fair dealing. 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 "Decline prohibited compensation and document the issue".

Answer Options
A
Decline prohibited compensation and document the issue
B
Rely on sales practice rather than required verification, disclosure, or documentation.
C
Use a manager exception instead of the required federal mortgage rule.
D
Treat the requirement as satisfied by experience rather than the rule that governs the file.

Why This Is the Correct Answer

professional conduct requires honesty, confidentiality, no prohibited compensation, and fair dealing. 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 "Decline prohibited compensation and document the issue".

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