Which statement about mortgage advertising compliance is most accurate?
Correct Answer
B) Advertisements must include the MLO's NMLS ID number
The SAFE Act requires that mortgage loan originators include their unique NMLS identifier in all advertisements and promotional materials. This applies to all MLOs regardless of licensing type.
Why This Is the Correct Answer
The SAFE Act requires that mortgage loan originators include their unique NMLS identifier in all advertisements and promotional materials. This applies to all MLOs regardless of licensing type.
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:
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Previous Question
A borrower asks an MLO to recommend whether they should pay points to buy down their interest rate or use that money for a larger down payment. The MLO will earn higher compensation if the borrower pays points. How should the MLO respond?
Next Question
During a fair lending examination, regulators find that a bank's branch in a predominantly Asian neighborhood has different loan products available than branches in other areas, with generally less favorable terms. The bank claims this reflects local market conditions and customer preferences. This practice would MOST likely be: