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Ethics & Fraudmedium18% of exam

A mortgage file is paused during a policy refresh meeting because of Ethics and Professional Conduct. Which answer should avoid a shortcut that would misapply the rule?

Correct Answer

D) 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
Apply the rate-lock timing rule even though the file is testing Ethics and Professional Conduct.
B
Ignore the consumer-protection issue unless the borrower complains.
C
Document the issue later instead of correcting the compliance problem first.
D
Disclose and manage the conflict before proceeding

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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