EstatePass
Ethics & Fraudhard18% of exam

An internal audit flags fraud red flags and Appraisal Independence Requirements. Which response best protects compliance?

Correct Answer

D) Stop processing until the inconsistency is resolved

fraud red flags require verification, documentation, and escalation before reliance. This item uses an exam-style scenario; any file details in the stem are illustrative and the governing rule controls the compliant response. The best answer is "Stop processing until the inconsistency is resolved".

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
Use a manager exception instead of the required federal mortgage rule.
D
Stop processing until the inconsistency is resolved

Why This Is the Correct Answer

fraud red flags require verification, documentation, and escalation before reliance. This item uses an exam-style scenario; any file details in the stem are illustrative and the governing rule controls the compliant response. The best answer is "Stop processing until the inconsistency is resolved".

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