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A California MLO discovers that their employing mortgage company has been charging borrowers for services that were never provided. Under CRMLA, what is the MLO's primary obligation?

Correct Answer

C) Report the violation to the DFPI immediately

Under CRMLA, MLOs have a duty to report violations of mortgage lending laws to the DFPI. Charging for services not provided constitutes fraud and must be reported immediately.

Answer Options
A
Document the violations but take no further action
B
Discuss the issue with company management first
C
Report the violation to the DFPI immediately
D
Resign from the company to avoid liability

Why This Is the Correct Answer

Under CRMLA, MLOs have a duty to report violations of mortgage lending laws to the DFPI. Charging for services not provided constitutes fraud and must be reported immediately.

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