Which federal agency is primarily responsible for receiving Suspicious Activity Reports (SARs) related to mortgage fraud?
Correct Answer
B) Financial Crimes Enforcement Network (FinCEN)
FinCEN (Financial Crimes Enforcement Network), a bureau of the U.S. Treasury Department, is the primary agency that receives and analyzes SARs filed by financial institutions under the Bank Secrecy Act.
Why This Is the Correct Answer
FinCEN (Financial Crimes Enforcement Network), a bureau of the U.S. Treasury Department, is the primary agency that receives and analyzes SARs filed by financial institutions under the Bank Secrecy Act.
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
Previous Question
Under the ECOA Valuations Rule, if a lender takes adverse action on a credit application, the applicant must receive a copy of any appraisal within:
Next Question
An MLO's company has a policy requiring use of a specific credit reporting agency that provides volume discounts. A borrower asks to use a different credit agency. How should the MLO respond?