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Ethics & Fraudmedium18% of exam

A company policy update raises a question about mortgage advertising compliance. Which action should the state compliance officer recommend?

Correct Answer

B) Use truthful advertising with required APR disclosures

Mortgage advertising must avoid misleading claims and satisfy APR/trigger-term rules. The best answer is "Use truthful advertising with required APR disclosures".

Answer Options
A
Continue the activity because the borrower appears willing to proceed.
B
Use truthful advertising with required APR disclosures
C
Resolve the Fair Advertising Practices issue with the branch licensing exception that does not fit the facts.
D
Document the issue later instead of correcting the compliance problem first.

Why This Is the Correct Answer

Mortgage advertising must avoid misleading claims and satisfy APR/trigger-term rules. The best answer is "Use truthful advertising with required APR disclosures".

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