EstatePass
Ethics & Fraudmedium18% of exam

A branch manager asks about a loan file because a loan officer wants different terms because of a protected applicant characteristic. What should happen?

Correct Answer

C) Evaluate the file without prohibited-basis factors

Lines 250-254; 12 CFR 1002.4(a). Credit decisions and treatment must not turn on prohibited-basis factors. Therefore, the correct response is "Evaluate the file without prohibited-basis factors".

Answer Options
A
Continue processing without correcting the disclosure, licensing, compensation, or consumer-protection issue.
B
Ignore the issue if the borrower orally agrees to continue.
C
Evaluate the file without prohibited-basis factors
D
Proceed based only on borrower preference and document the file later.

Why This Is the Correct Answer

Lines 250-254; 12 CFR 1002.4(a). Credit decisions and treatment must not turn on prohibited-basis factors. Therefore, the correct response is "Evaluate the file without prohibited-basis factors".

Was this explanation helpful?

More Ethics & Fraud Questions

People Also Study

Related Study Resources

Practice More MLO Questions

Access all practice questions with progress tracking and adaptive difficulty to pass your SAFE MLO exam.

Start Practicing