Morgan notices a compliance issue tied to professional conduct and Fraud Detection and Reporting. What is the best next step?
Correct Answer
B) Decline prohibited compensation and document the issue
professional conduct requires honesty, confidentiality, no prohibited compensation, and fair dealing. 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 "Decline prohibited compensation and document the issue".
Why This Is the Correct Answer
professional conduct requires honesty, confidentiality, no prohibited compensation, and fair dealing. 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 "Decline prohibited compensation and document the issue".
More Ethics & Fraud Questions
In a mortgage origination file, a title company offers a gift card for each borrower referral. Which action should be taken?
A processor asks how to handle a file where a loan officer wants different terms because of a protected applicant characteristic. Which response is most accurate?
In a training scenario, a loan officer wants different terms because of a protected applicant characteristic. What action best follows the rule?
A branch manager asks about a loan file because a loan officer wants different terms because of a protected applicant characteristic. What should happen?
A processor asks how to handle a file where an ad shows an interest rate but omits the APR presentation. Which response is most accurate?
In a training scenario, an ad shows an interest rate but omits the APR presentation. What action best follows 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?
In a training scenario, a title company offers a gift card for each borrower referral. What action best follows the rule?
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