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Ethics & Fraudmedium18% of exam

The file reviewer is resolving RESPA Kickbacks and Referrals during an internal audit sample. Which action best fits the rule?

Correct Answer

A) Disclose and manage the conflict before proceeding

Conflicts must be disclosed, managed, and kept free of referral compensation or steering incentives. The best answer is "Disclose and manage the conflict before proceeding".

Answer Options
A
Disclose and manage the conflict before proceeding
B
Apply the correct general concept to the wrong privacy notice stage rather than the RESPA Kickbacks and Referrals rule.
C
Ignore the consumer-protection issue unless the borrower complains.
D
Document the issue later instead of correcting the compliance problem first.

Why This Is the Correct Answer

Conflicts must be disclosed, managed, and kept free of referral compensation or steering incentives. The best answer is "Disclose and manage the conflict before proceeding".

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