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Ethics & Fraudmedium18% of exam

Kai is reviewing a mortgage file involving professional conduct and professional conduct standard to Borrower. Which response best follows the governing rule?

Correct Answer

C) 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".

Answer Options
A
Ignore the issue if the borrower orally agrees to continue.
B
Proceed based only on borrower preference and document the file later.
C
Decline prohibited compensation and document the issue
D
Rely on sales practice rather than required verification, disclosure, or documentation.

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".

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