A loan applicant purchased a property a year ago but stated she’s buying the fixer-upper property next door and will live in it full-time. If the MLO suspects fraud, what type of fraud is this?
Occupancy fraud
An individual calls a consumer and states he’s an employee at the consumer’s bank. Unfortunately, this is a scam attempt. The caller tries to get the consumer to give him nonpublic personal information. What’s this action called per the GLBA?
Pretexting
Under RESPA, which of the following fees and compensation are permitted?
A salary paid to an MLO for loan originating activities is permitted.
A telemarketing campaign involves reverse mortgages. The telemarketers contact consumers who aren’t on the Do Not Call Registry and tell them they’ll eliminate all their monthly payments if they get a reverse mortgage with their offer. The telemarketers figure that consumers know they must still pay homeowners insurance and taxes. How would the TSR define the telemarketer’s conduct?
Deceptive
What does RESPA prohibit to protect borrowers from overcharges in a mortgage loan closing?
Kickbacks
For what reason may an MLO request a loan applicant’s credit report?
To check the applicant’s credit report specific to the loan application.
Which of the following may be used as a guiding principle for creating compliant advertising?
Employ truth in advertising.
Mack is a loan processor. A borrower handed him his filled-out mortgage loan application but said that he had a couple of questions he needed help answering and had a question about the interest rate. Which of the following, if any, may Mack do?
Accept the application, loan processors are prohibited from doing anything that requires a license, such as answering loan application-related questions and negotiating. A loan processor may accept an application from a borrower, which is an administrative task.
Which category of real estate transactions is covered under the federal Fair Housing Act’s anti-discrimination provisions?
Residential property financing, the federal FHA prohibits discrimination based on a protected class in any residential real estate transaction.
Which of the following is a red-flag category that may share identity theft red flags through alerts, notifications, or warnings, such as a credit freeze notice?
Consumer reporting agencies, consumer reporting agencies are a red-flag category that may share identity theft red flags through alerts, notifications, or warnings, such as credit report freeze notices and fraud alerts.
Which of the following is a Missouri MLO prohibited from doing mortgage loan appraisals?
Encouraging a more favorable valuation by offering compensation
Which of the following is NOT a consumer protection resource for making complaints related to mortgages?
National Association of REALTORS®
Which of the following makes up a good portion of an MLO’s job?
Delivering customer service, MLOs must be knowledgeable about mortgages and the industry in general, but a good portion of the job is delivering customer service to borrowers. MLOs may serve as the “face” of the mortgage process, so borrowers rely on them for guidance and help in get all their questions answered.
An MLO found a discrepancy between what a borrower reported on his loan application and the borrower’s documentation. What must the MLO do?
Take the loan file to a supervisor, In this scenario, if an MLO found a discrepancy between documents and what the borrower reported, the MLO must investigate the discrepancy, then take the loan file to a senior person or supervisor for advisement on how to handle the situation. An MLO may not call a borrower and make accusations of fraud.
Which of the following may be used as a guiding principle for creating compliant advertising?
Employ truth in advertising
