Which of the following is NOT one of the three main categories of prohibited conduct under UDAAP?
Correct Answer
D) Discriminatory practices
UDAAP specifically prohibits Unfair, Deceptive, or Abusive Acts or Practices. Discriminatory practices are prohibited under separate laws such as the Fair Housing Act and Equal Credit Opportunity Act, not UDAAP.
Why This Is the Correct Answer
UDAAP specifically prohibits Unfair, Deceptive, or Abusive Acts or Practices. Discriminatory practices are prohibited under separate laws such as the Fair Housing Act and Equal Credit Opportunity Act, not UDAAP.
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Previous Question
A bank's policy requires a minimum credit score of 720 for all mortgage applicants. Statistical analysis shows this policy disproportionately affects Hispanic applicants, even though the policy is applied equally to all applicants. This scenario represents:
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During a loan application review, an MLO notices that a borrower's debt-to-income ratio will likely result in loan denial. The borrower mentions they have additional unreported income from a side business. What is the MLO's ethical obligation?