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".
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".
More Ethics & Fraud Questions
The loan team is resolving Privacy and Confidentiality during a quality-control sample. Which action best fits the rule?
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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?
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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?
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Previous Question
A mortgage file is paused during a policy refresh meeting because of professional conduct standard. Which answer should apply the requirement without relying on borrower preference?
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A disclosure specialist compares the file facts with UDAAP Abusive Practices during a borrower follow-up call. Which conclusion is accurate?