A team member asks about Fraud and Deceptive Practices in a compliance desk review while trying to explain the required action to the team. Which response should a licensing coordinator use?
Correct Answer
D) Verify repayment ability before recommending the loan
Predatory-lending concerns include unaffordable loans, equity stripping, flipping, and abusive high-cost features. The best answer is "Verify repayment ability before recommending the loan".
Why This Is the Correct Answer
Predatory-lending concerns include unaffordable loans, equity stripping, flipping, and abusive high-cost features. The best answer is "Verify repayment ability before recommending the loan".
More Ethics & Fraud Questions
The loan team is resolving Privacy and Confidentiality during a quality-control sample. Which action best fits the rule?
Before the team acts on a branch training session, the loan team must address UDAAP Unfair Deceptive Practices. Which response is most defensible?
Before the loan advances, a sponsorship reviewer must resolve an predatory-lending controls issue in an NMLS filing review. What should happen?
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?
A processor compares the file facts with Fraud Detection and Prevention during an underwriting condition review. Which conclusion is accurate?
A risk reviewer is resolving Fair Lending Ethics during a quality-control sample. Which action best fits the rule?
During intake, a title company offers a gift card for each borrower referral. What is the best compliant response?
A compliance review finds that a title company offers a gift card for each borrower referral. What should the MLO do next?
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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