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Ethics & Fraudmedium18% of exam

Casey notices a compliance issue tied to conflicts of interest and RESPA — Affiliated Business Arrangements. What is the best next step?

Correct Answer

A) Disclose and manage the conflict before proceeding

conflicts must be disclosed, managed, and kept free of referral compensation or steering incentives. This item uses an exam-style scenario; any file details in the stem are illustrative and the governing rule controls the compliant response. The best answer is "Disclose and manage the conflict before proceeding".

Answer Options
A
Disclose and manage the conflict before proceeding
B
Rely on sales practice rather than required verification, disclosure, or documentation.
C
Use a manager exception instead of the required federal mortgage rule.
D
Treat the requirement as satisfied by experience rather than the rule that governs the file.

Why This Is the Correct Answer

conflicts must be disclosed, managed, and kept free of referral compensation or steering incentives. This item uses an exam-style scenario; any file details in the stem are illustrative and the governing rule controls the compliant response. The best answer is "Disclose and manage the conflict before proceeding".

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