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?
Correct Answer
C) Refuse the referral fee because no service is performed
Lines 244-249; 12 CFR 1024.14(b). A thing of value for a referral is prohibited even if the borrower charge does not increase. Therefore, the correct response is "Refuse the referral fee because no service is performed".
Why This Is the Correct Answer
Lines 244-249; 12 CFR 1024.14(b). A thing of value for a referral is prohibited even if the borrower charge does not increase. Therefore, the correct response is "Refuse the referral fee because no service is performed".
More Ethics & Fraud Questions
The loan team is resolving Privacy and Confidentiality during a quality-control sample. Which action best fits the rule?
Before the team acts on a branch training session, the loan team must address UDAAP Unfair Deceptive Practices. Which response is most defensible?
Before the loan advances, a sponsorship reviewer must resolve an predatory-lending controls issue in an NMLS filing review. What should happen?
A disclosure specialist compares the file facts with Fraud Detection and Reporting during a new-hire scenario. Which conclusion is accurate?
Before the team acts on a production meeting, the MLO must address professional conduct standard to Borrowers. Which response is most defensible?
A processor compares the file facts with Fraud Detection and Prevention during an underwriting condition review. Which conclusion is accurate?
A risk reviewer is resolving Fair Lending Ethics during a quality-control sample. Which action best fits the rule?
During intake, a title company offers a gift card for each borrower referral. What is the best compliant response?
A compliance review finds that a title company offers a gift card for each borrower referral. What should the MLO do next?
In a training scenario, a title company offers a gift card for each borrower referral. What action best follows the rule?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
A team member asks about Due Diligence Requirements in an investor-delivery review while trying to resolve the issue before the file moves forward. Which response should a disclosure specialist use?
Next Question
Before the loan advances, a compliance manager must resolve an telemarketing and do-not-call controls issue in a branch onboarding review. What should happen?