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Ethics & Fraudhard18% of exam

A branch manager asks about a loan file because marketing proposes a rate the company is not prepared to offer. What should happen?

Correct Answer

A) Advertise only credit terms actually available

Lines 261-265 and 273-277; 12 CFR 1026.24(a). Specific advertised terms must be terms the creditor actually is or will be prepared to offer. Therefore, the correct response is "Advertise only credit terms actually available".

Answer Options
A
Advertise only credit terms actually available
B
Treat prior mortgage experience as a substitute for the required compliance condition.
C
Use a generic national checklist instead of the requirement in this staff training note.
D
Document that advertising and consumer protection was reviewed, but take no required corrective action.

Why This Is the Correct Answer

Lines 261-265 and 273-277; 12 CFR 1026.24(a). Specific advertised terms must be terms the creditor actually is or will be prepared to offer. Therefore, the correct response is "Advertise only credit terms actually available".

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