EstatePass
Ethics & Fraudmedium18% of exam

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?

Correct Answer

C) 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
Continue the activity because the borrower appears willing to proceed.
B
Ignore the consumer-protection issue unless the borrower complains.
C
Advertise only credit terms actually available
D
Document the issue later instead of correcting the compliance problem first.

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".

Was this explanation helpful?

More Ethics & Fraud Questions

People Also Study

Related Study Resources

Practice More MLO Questions

Access all practice questions with progress tracking and adaptive difficulty to pass your SAFE MLO exam.

Start Practicing