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Ethics & Fraudmedium18% of exam

Avery is reviewing a mortgage file involving fair lending enforcement and ECOA — Valuations Rule. Which response best follows the governing rule?

Correct Answer

C) Investigate and correct the disparate treatment pattern

fair-lending review looks for discriminatory treatment, disparate impact, and redlining risks. 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 "Investigate and correct the disparate treatment pattern".

Answer Options
A
Ignore the issue if the borrower orally agrees to continue.
B
Proceed based only on borrower preference and document the file later.
C
Investigate and correct the disparate treatment pattern
D
Rely on sales practice rather than required verification, disclosure, or documentation.

Why This Is the Correct Answer

fair-lending review looks for discriminatory treatment, disparate impact, and redlining risks. 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 "Investigate and correct the disparate treatment pattern".

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