A licensing coordinator compares the file facts with Telemarketing Sales Rule during a borrower follow-up call. Which conclusion is accurate?
Correct Answer
C) Honor the do-not-call request under telemarketing rules
Why this is correct: Under the Telemarketing Sales Rule (TSR) and the Telephone Consumer Protection Act (TCPA), if a consumer makes an internal do-not-call request (asking a specific company not to call), the company must honor that request. This requirement is separate from the National Do-Not-Call Registry. The correct answer, "Honor the do-not-call request under telemarketing rules," is a direct and mandatory compliance step. Why the other choices are wrong: "Resolve the Telemarketing Sales Rule issue with the closing disclosure exception that does not fit the facts" is wrong because a closing disclosure exception is unrelated to telemarketing call rules; applying the wrong exception is non-compliant. "Ignore an internal do-not-call request after the borrower shows interest" is wrong because showing interest does not override a subsequent do-not-call request; the request must be honored. "Treat prior borrower contact as unlimited permission for future calls" is wrong because prior contact does not create unlimited permission, and it certainly does not override a direct do-not-call request. Exam tip: An internal do-not-call request must be recorded and honored immediately. It applies even if the number is not on the National DNC Registry.
Why This Is the Correct Answer
The correct response is "Honor the do-not-call request under telemarketing rules" because Telemarketing rules limit calling times, registry calls, internal do-not-call handling, and consent.
Why the Other Options Are Wrong
Option A: Resolve the Telemarketing Sales Rule issue with the closing disclosure exception that does not fit the facts.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Option B: Ignore an internal do-not-call request after the borrower shows interest.
Ignore an internal do-not-call request after the borrower shows interest. is not correct because it does not apply the rule tested by this file scenario.
Option D: Treat prior borrower contact as unlimited permission for future calls.
Treat prior borrower contact as unlimited permission for future calls. is not correct because it does not apply the rule tested by this file scenario.
Memory Technique
telemarketing and do-not-call controls: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
Match the file facts to telemarketing and do-not-call controls; do not choose an exception or shortcut that skips the required rule.
Common Mistakes to Avoid
- -Choosing an internal exception instead of the governing rule
- -Treating preliminary or informal facts as a substitute for required documentation
- -Answering from a familiar but unrelated mortgage topic
More Ethics & Fraud Questions
In a closing-readiness check, a disclosure specialist sees facts tied to Appraisal Fraud Detection. What should the file reflect?
An MLO recommends a loan with a low initial payment that will increase sharply in two years. The borrower says retirement income will be fixed and asks whether the payment can change. What is the appropriate response?
An MLO alters a bank statement to make the applicant's account balance appear higher and submits it to underwriting. Which response is appropriate?
A branch manager asks about a loan file because marketing proposes a rate the company is not prepared to offer. What should happen?
A borrower wants cash for necessary home repairs. A proposed refinance provides $15,000 cash but adds $12,000 in costs and extends repayment by 15 years. What is the best next step for the MLO?
Before closing, the team discovers that an ad shows an interest rate but omits the APR presentation. What is the safest compliant answer?
The loan team is resolving Privacy and Confidentiality during a quality-control sample. Which action best fits the rule?
A house last sold for $185,000 in January. In March it changes hands 3 times in 9 days, reaching $410,000, with the same appraiser and the same closing agent on every leg. Assuming the parties colluded to inflate appraisals without improvements to support the higher prices, what fraud scheme does this pattern illustrate?
For closings involving federally related mortgage loans, a title company pays a real estate brokerage $75 for each referred client who closes. The brokerage only passes along the client’s name and number. Does this referral payment comply with RESPA Section 8?
Before closing, the team discovers that a loan officer wants different terms because of a protected applicant characteristic. What is the safest compliant answer?
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Previous Question
A mortgage marketer subject to the FTC Telemarketing Sales Rule buys 500 homeowner leads for interstate sales calls. No established relationship, consent or exemption applies. What do-not-call screening should precede the campaign?
Next Question
For federally related mortgage loans, an originator promises a real estate agent $75 in restaurant vouchers for each referred buyer whose loan closes. Fourteen referred loans close. Are these vouchers prohibited referral compensation under RESPA Section 8?