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Ethics & Fraudhard18% of exam

Before closing, the team discovers that a loan officer wants different terms because of a protected applicant characteristic. What is the safest compliant answer?

Correct Answer

D) 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
Let production goals override the required verification, disclosure, license, or record step.
B
Apply the rule only after a regulator asks specifically about financial responsibility.
C
Treat the rule as waived because all parties want the file to move faster.
D
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".

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