A compliance review finds that a borrower asks whether the company will file a suspicious activity report. What should the MLO do next?
Correct Answer
D) Do not tell the borrower that a SAR may be filed
Lines 255-260; 31 CFR 1029.320 and final rule discussion of reports of suspicious transactions. SAR rules include confidentiality; the borrower should not be tipped off about a SAR filing or potential filing. Therefore, the correct response is "Do not tell the borrower that a SAR may be filed".
Why This Is the Correct Answer
Lines 255-260; 31 CFR 1029.320 and final rule discussion of reports of suspicious transactions. SAR rules include confidentiality; the borrower should not be tipped off about a SAR filing or potential filing. Therefore, the correct response is "Do not tell the borrower that a SAR may be filed".
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During a state-law refresher, an audit analyst identifies an issue involving mortgage-fraud types. Which response is most compliant?
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