A quality-control reviewer flags a case because a borrower asks whether the company will file a suspicious activity report. What correction is appropriate?
Correct Answer
D) Do not tell the borrower that a SAR may be filed
Lines 255-260; 31 CFR 1029.320 and final rule discussion of reports of suspicious transactions. SAR rules include confidentiality; the borrower should not be tipped off about a SAR filing or potential filing. Therefore, the correct response is "Do not tell the borrower that a SAR may be filed".
Why This Is the Correct Answer
Lines 255-260; 31 CFR 1029.320 and final rule discussion of reports of suspicious transactions. SAR rules include confidentiality; the borrower should not be tipped off about a SAR filing or potential filing. Therefore, the correct response is "Do not tell the borrower that a SAR may be filed".
More Ethics & Fraud Questions
The loan team is resolving Privacy and Confidentiality during a quality-control sample. Which action best fits the rule?
Before the team acts on a branch training session, the loan team must address UDAAP Unfair Deceptive Practices. Which response is most defensible?
Before the loan advances, a sponsorship reviewer must resolve an predatory-lending controls issue in an NMLS filing review. What should happen?
A disclosure specialist compares the file facts with Fraud Detection and Reporting during a new-hire scenario. Which conclusion is accurate?
Before the team acts on a production meeting, the MLO must address professional conduct standard to Borrowers. Which response is most defensible?
A processor compares the file facts with Fraud Detection and Prevention during an underwriting condition review. Which conclusion is accurate?
A risk reviewer is resolving Fair Lending Ethics during a quality-control sample. Which action best fits the rule?
During intake, a title company offers a gift card for each borrower referral. What is the best compliant response?
A compliance review finds that a title company offers a gift card for each borrower referral. What should the MLO do next?
A processor asks how to handle a file where a title company offers a gift card for each borrower referral. Which response is most accurate?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Uniform State Test Content
11% of exam