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Ethics & Fraudeasy18% of exam

An audit analyst compares the file facts with Conflicts of Interest during an underwriting condition review. Which conclusion is accurate?

Correct Answer

A) Transfer the file if objectivity is compromised

Conflicts must be disclosed, managed, and kept free of referral compensation or steering incentives. The best answer is "Transfer the file if objectivity is compromised".

Answer Options
A
Transfer the file if objectivity is compromised
B
Continue the activity because the borrower appears willing to proceed.
C
Ignore the consumer-protection issue unless the borrower complains.
D
Assume the Conflicts of Interest condition is met because the borrower satisfied the separate flood insurance requirement.

Why This Is the Correct Answer

Conflicts must be disclosed, managed, and kept free of referral compensation or steering incentives. The best answer is "Transfer the file if objectivity is compromised".

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