Under fair lending regulations, which action would require immediate corrective measures during an examination?
Correct Answer
B) Evidence of loan officers making discriminatory statements to applicants
Direct evidence of discriminatory statements or conduct by loan officers represents overt discrimination that violates ECOA and the Fair Housing Act. Such violations require immediate corrective action, including retraining, disciplinary measures, and potentially remediation for affected borrowers.
Why This Is the Correct Answer
Direct evidence of discriminatory statements or conduct by loan officers represents overt discrimination that violates ECOA and the Fair Housing Act. Such violations require immediate corrective action, including retraining, disciplinary measures, and potentially remediation for affected borrowers.
More Ethics & Fraud Questions
A lender's mobile app prominently displays a 'pre-qualification' feature that asks for minimal information but generates loan amount estimates that are consistently 20-30% higher than what borrowers actually qualify for when they complete full applications. The app includes a disclaimer that estimates are 'subject to full underwriting.' This practice is most likely:
An MLO discovers that multiple loan applications from different borrowers contain identical handwriting in the signature sections, despite different purported signers. The applications were submitted by different real estate agents. What is the most appropriate immediate action?
A mortgage loan originator receives a lead from a real estate agent about a potential borrower. Before calling this consumer, the MLO must:
An MLO tells Asian applicants that they need larger down payments 'because that's what investors prefer for your type of loan,' while telling similarly qualified white applicants that standard down payments are acceptable. This practice represents:
A mortgage company advertises 'Guaranteed approval for all credit types!' but internally has minimum credit score requirements of 580. This advertisement is problematic because it:
People Also Study
Federal Mortgage-Related Laws
23% of exam
General Mortgage Knowledge
23% of exam
Mortgage Loan Origination Activities
25% of exam
Uniform State Test Content
12% of exam