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Ethics & Fraudmedium18% of exam

A branch supervisor is training staff on financial responsibility using a record-retention audit. Which statement is accurate?

Correct Answer

A) Remove the protected-class or redlining factor

fair lending requires equal treatment and credit-related standards without prohibited-basis discrimination. 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 "Remove the protected-class or redlining factor".

Answer Options
A
Remove the protected-class or redlining factor
B
Proceed based only on borrower preference and document the file later.
C
Rely on sales practice rather than required verification, disclosure, or documentation.
D
Use a manager exception instead of the required federal mortgage rule.

Why This Is the Correct Answer

fair lending requires equal treatment and credit-related standards without prohibited-basis discrimination. 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 "Remove the protected-class or redlining factor".

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