In a mortgage origination file, a loan officer wants different terms because of a protected applicant characteristic. Which action should be taken?
Correct Answer
B) Evaluate the file without prohibited-basis factors
Lines 250-254; 12 CFR 1002.4(a). Credit decisions and treatment must not turn on prohibited-basis factors. Therefore, the correct response is "Evaluate the file without prohibited-basis factors".
Why This Is the Correct Answer
Lines 250-254; 12 CFR 1002.4(a). Credit decisions and treatment must not turn on prohibited-basis factors. Therefore, the correct response is "Evaluate the file without prohibited-basis factors".
More Ethics & Fraud Questions
In a mortgage origination file, a title company offers a gift card for each borrower referral. Which action should be taken?
A processor asks how to handle a file where a loan officer wants different terms because of a protected applicant characteristic. Which response is most accurate?
In a training scenario, a loan officer wants different terms because of a protected applicant characteristic. What action best follows the rule?
A branch manager asks about a loan file because a loan officer wants different terms because of a protected applicant characteristic. What should happen?
A processor asks how to handle a file where an ad shows an interest rate but omits the APR presentation. Which response is most accurate?
In a training scenario, an ad shows an interest rate but omits the APR presentation. What action best follows 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?
In a training scenario, a title company offers a gift card for each borrower referral. What action best follows the rule?
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 licensing coordinator is training staff on advertising and consumer-protection controls using an MLO sponsorship update. Which statement is accurate?
Next Question
During quality control, Elliot finds a file issue involving fair lending and ECOA — Disparate Impact. Which action is most appropriate?