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Ethics & Fraudeasy18% of exam

Alex is reviewing a mortgage file involving advertising compliance and Advertising Compliance Requirements. Which response best follows the governing rule?

Correct Answer

C) Substantiate advertised terms before publication

mortgage advertising must avoid misleading claims and satisfy APR/trigger-term rules. 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 "Substantiate advertised terms before publication".

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
Substantiate advertised terms before publication
D
Use a manager exception instead of the required federal mortgage rule.

Why This Is the Correct Answer

mortgage advertising must avoid misleading claims and satisfy APR/trigger-term rules. 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 "Substantiate advertised terms before publication".

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