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?
Correct Answer
B) Honor the do-not-call request under telemarketing rules
Why this is correct: The Telemarketing Sales Rule (TSR) and the Telephone Consumer Protection Act (TCPA) establish strict rules for telemarketing, including maintaining a company-specific do-not-call list. When a consumer makes a do-not-call request, the company must honor it. "Honor the do-not-call request under telemarketing rules" is the definitive, compliant action required when such a controls issue is identified during onboarding. Why the other choices are wrong: "Call without checking consent or registry status" is wrong because it violates the foundational rules requiring prior express written consent or checking the National Do-Not-Call Registry. "Treat the Telemarketing Sales Rule review as complete because the file contains a related closing disclosure note" is wrong because a note on an unrelated topic (closing disclosure) does not satisfy specific telemarketing consent and do-not-call obligations. "Treat prior borrower contact as unlimited permission for future calls" is wrong because prior contact does not constitute ongoing consent; a do-not-call request must be honored regardless of past contact. Exam tip: For do-not-call rules, remember that a consumer's request to be placed on your internal do-not-call list must be honored immediately. Prior contact is irrelevant.
Why This Is the Correct Answer
The correct response is "Honor the do-not-call request under telemarketing rules" 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: Treat the Telemarketing Sales Rule review as complete because the file contains a related closing disclosure note.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Option D: Treat prior borrower contact as unlimited permission for future calls.
Treat prior borrower contact as unlimited permission for future calls. is not correct because it does not apply the rule tested by this file scenario.
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?
A house last sold for $185,000 in January. In March it changes hands 3 times in 9 days, reaching $410,000, with the same appraiser and the same closing agent on every leg. Assuming the parties colluded to inflate appraisals without improvements to support the higher prices, what fraud scheme does this pattern illustrate?
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?
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 processor asks how to handle a file where a title company offers a gift card for each borrower referral. Which response is most accurate?
Next Question
A borrower signs an occupancy affidavit for a $340,000 purchase, then tells the originator in an email that she will rent it out from day 1. What must the originator conclude about proceeding with the loan as an owner-occupied transaction?