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Ethics & Fraudhard18% of exam

An internal audit flags fair lending enforcement and Fair Housing Act discrimination. Which response best protects compliance?

Correct Answer

C) Apply fair-lending controls consistently

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 "Apply fair-lending controls consistently".

Answer Options
A
Rely on sales practice rather than required verification, disclosure, or documentation.
B
Use a manager exception instead of the required federal mortgage rule.
C
Apply fair-lending controls consistently
D
Treat the requirement as satisfied by experience rather than the rule that governs the file.

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 "Apply fair-lending controls consistently".

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