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The DFPI discovers that a CRMLA licensee has been steering borrowers into higher-cost loans to earn larger commissions. What enforcement action can the DFPI take?

Correct Answer

A) Suspend or revoke the lender's CRMLA license and impose civil penalties

The DFPI has authority to suspend or revoke a CRMLA license and impose civil penalties for violations such as loan steering. Steering borrowers into inappropriate loans for personal gain is a serious violation of consumer protection requirements.

Answer Options
A
Suspend or revoke the lender's CRMLA license and impose civil penalties
B
Refer the matter to the local Better Business Bureau
C
Issue a verbal warning with no further action required
D
Require the lender to attend a one-hour ethics seminar

Why This Is the Correct Answer

The DFPI has authority to suspend or revoke a CRMLA license and impose civil penalties for violations such as loan steering. Steering borrowers into inappropriate loans for personal gain is a serious violation of consumer protection requirements.

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