Parker is training a new MLO on predatory-lending controls. Which statement is accurate?
Correct Answer
B) Explain material risks before the borrower proceeds
Predatory-lending concerns include unaffordable loans, equity stripping, flipping, and abusive high-cost features. The best answer is "Explain material risks before the borrower proceeds".
Why This Is the Correct Answer
Predatory-lending concerns include unaffordable loans, equity stripping, flipping, and abusive high-cost features. The best answer is "Explain material risks before the borrower proceeds".
More Ethics & Fraud Questions
A mortgage team asks a branch supervisor about fraud red flags during a mortgage operations checklist. Which answer should guide the file?
Before the file moves forward, Gray must resolve an issue involving borrower privacy and confidentiality. What should happen?
An internal audit flags fair-lending enforcement risk. Which response best protects compliance?
A loan team is about to close a file involving conflicts of interest. Which action should occur first?
A training manager is reviewing a mortgage file during a state-law refresher. Which statement correctly handles predatory-lending controls?
A policy analyst is reviewing a mortgage file during a training scenario. Which statement correctly handles mortgage-fraud types?
During quality control, Noel finds a file issue involving conflicts of interest. Which action is most appropriate?
Morgan notices a compliance issue tied to telemarketing and do-not-call controls. What is the best next step?
During intake, a title company offers a gift card for each borrower referral. What is the best compliant response?
A borrower scenario raises a question about fraud red flags. Which answer should Emery rely on?
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 branch manager asks about a loan file because a borrower asks whether the company will file a suspicious activity report. What should happen?
Next Question
A processor asks how to handle a file where marketing proposes a rate the company is not prepared to offer. Which response is most accurate?