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Ethics & Fraudeasy18% of exam

During intake, a settlement provider asks to be paid for a task it did not actually perform. What is the best compliant response?

Correct Answer

C) Pay only for actual, necessary, distinct services performed

Lines 267-269; 12 CFR 1024.14(g). The ethical and legal distinction is payment for real services, not a label or customary amount. Therefore, the correct response is "Pay only for actual, necessary, distinct services performed".

Answer Options
A
Proceed based only on borrower preference and document the file later.
B
Rely on sales practice rather than required verification, disclosure, or documentation.
C
Pay only for actual, necessary, distinct services performed
D
Use a manager exception instead of the required federal mortgage rule.

Why This Is the Correct Answer

Lines 267-269; 12 CFR 1024.14(g). The ethical and legal distinction is payment for real services, not a label or customary amount. Therefore, the correct response is "Pay only for actual, necessary, distinct services performed".

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