A team member asks about Do Not Call Registry Compliance in a consumer complaint triage while trying to match the file facts to the correct rule. Which response should the branch manager use?
Correct Answer
D) Check consent and registry status before calling
Why this is correct: The governing concept is compliance with the Telephone Consumer Protection Act (TCPA) and the National Do Not Call (DNC) Registry rules. Before making telemarketing calls, a caller must (1) scrub the call list against the national DNC registry (unless an exception applies) and (2) have the consumer's prior express written consent for certain calls. The compliant step is always to check both consent and registry status. Why the other choices are wrong: "Call without checking consent or registry status" is a direct violation of telemarketing rules. "Ignore an internal do-not-call request after the borrower shows interest" is wrong because a company must honor its own internal DNC requests even if the consumer is on the national registry. "Treat prior borrower contact as unlimited permission for future calls" is wrong because prior contact does not equate to ongoing consent for telemarketing. Exam tip: Before any business development call, remember the two checks: 1) National DNC List, and 2) Consumer Consent. Missing either can lead to significant penalties.
Why This Is the Correct Answer
The correct response is "Check consent and registry status before calling" because Telemarketing rules limit calling times, registry calls, internal do-not-call handling, and consent.
Why the Other Options Are Wrong
Option A: Call without checking consent or registry status.
Call without checking consent or registry status. is not correct because it does not apply the rule tested by this file scenario.
Option B: Ignore an internal do-not-call request after the borrower shows interest.
Ignore an internal do-not-call request after the borrower shows interest. is not correct because it does not apply the rule tested by this file scenario.
Option C: Treat prior borrower contact as unlimited permission for future calls.
Treat prior borrower contact as unlimited permission for future calls. is not correct because it does not apply the rule tested by this file scenario.
Memory Technique
telemarketing and do-not-call controls: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
Match the file facts to telemarketing and do-not-call controls; do not choose an exception or shortcut that skips the required rule.
Common Mistakes to Avoid
- -Choosing an internal exception instead of the governing rule
- -Treating preliminary or informal facts as a substitute for required documentation
- -Answering from a familiar but unrelated mortgage topic
More Ethics & Fraud Questions
In a closing-readiness check, a disclosure specialist sees facts tied to Appraisal Fraud Detection. What should the file reflect?
An MLO recommends a loan with a low initial payment that will increase sharply in two years. The borrower says retirement income will be fixed and asks whether the payment can change. What is the appropriate response?
An MLO alters a bank statement to make the applicant's account balance appear higher and submits it to underwriting. Which response is appropriate?
A branch manager asks about a loan file because marketing proposes a rate the company is not prepared to offer. What should happen?
A borrower wants cash for necessary home repairs. A proposed refinance provides $15,000 cash but adds $12,000 in costs and extends repayment by 15 years. What is the best next step for the MLO?
Before closing, the team discovers that an ad shows an interest rate but omits the APR presentation. What is the safest compliant answer?
The loan team is resolving Privacy and Confidentiality during a quality-control sample. Which action best fits the rule?
A house last sold for $185,000 in January. In March it changes hands 3 times in 9 days, reaching $410,000, with the same appraiser and the same closing agent on every leg. Assuming the parties colluded to inflate appraisals without improvements to support the higher prices, what fraud scheme does this pattern illustrate?
For closings involving federally related mortgage loans, a title company pays a real estate brokerage $75 for each referred client who closes. The brokerage only passes along the client’s name and number. Does this referral payment comply with RESPA Section 8?
Before closing, the team discovers that a loan officer wants different terms because of a protected applicant characteristic. What is the safest compliant answer?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
A company charges a $95 "wire coordination fee" on files where the wire is sent by the closing agent and the company does nothing but receive confirmation. What is the correct treatment?
Next Question
For consumer credit secured by a principal dwelling, an underwriter sees that an appraisal uses three comparables more than 1.2 miles away. A sale closed two weeks ago on the same street. May she neutrally ask the appraiser to consider that sale as potentially relevant information, without demanding a particular value?