(11) Ethical issues and behavior related to loan origination activities

11.1- What is the Gramm-Leach Bailey Act? What are Prohibited Acts? Explain the consequences of Violations of Gramm-Leach Bliley Act

11.2- What is "redlining"? Give Examples of “redlining”

11.3- What is RESPA? What are Acceptable/non-acceptable practices under RESPA? Give Examples of prohibited acts

11.4- What are acceptable Requests for personal information?

11.5- What are "kickbacks"? Give some Examples of “kickbacks”

11.6- What are the Duties a loan processor may/may not perform?

11.7- What is Predatory lending and steering?

11.8- Explain "Fairness Lending"

11.9- What is the Definition of a "referral" and the required associated disclosures, and when are they necessary?

11.10- What is Coersion? Explain Coercion scenarios

11.11- Explain Scenarios where the appraiser has a conflict of interest

11.12- Explain Discriminating against a loan applicant

11.13- What are the Requirement to treat all applicants with the same level of fairness?

11.14- How is Truth in marketing and advertising conducted?

11.15- Explain Scenarios where information is misleading within an advertisement

11.16- What is Bait and Switch? Give a few Bait and switch scenarios

11.17- What is due deligence? What is the importance of Performing a due diligence review of advertisements prior to publication? Explain Scenarios where “unfair, deceptive, or abusive acts” are undertaken

11.18- Give Examples of lawful advertising. What are Types of advertisements that are subject to federal regulations? What are the Rules surrounding contact (e.g., “Established business relationship”)? What are Permissible statements/phrases within an advertisement?

11.19- How is the Borrower education conducted? How is Fraud detected?

11.20- What is Asset fraud?

11.21- What are Red flags on a sales contract?

11.22- What are red flags on an Application?

11.23- How is fraudulent information verified on a loan application? (Income Fraud, Occupancy Fraud, consumer's bank activity )?

11.24- Explain some General red flags that could represent fraud

11.25- Explain Scenarios surrounding a consumer’s bank activity

11.26- Explain Scenarios where information is not provided to a borrower

11.27- Explain Employment fraud, Liability fraud, Suspicious activity

11.28- What are Permitted fees, payments, and compensation (e.g., Loan Estimate)?

11.29- What are the Fees that may not increase due to changed circumstances ?

11.30- How are the fees handled based on the Loan Estimate

11.31- Explain Closing cost scenarios

11.32- Explain Settlement scenarios where monies are missing or misused

11.33- Explain Scenarios surrounding referral fees, Splitting fees

11.34- How are consumer complaints handled? What are Mortgage company compliance requirements? What are Acceptable practices when acting on behalf of a lender

11.35- What are Acceptable practices regarding appraisals?

11.36- Explain Scenarios when an MLO discovers material information that should be conveyed to the lender

11.37- Explain Scenarios surrounding the information supplied by employers

11.38- Explain Requirements for MLOs regarding Relationship with consumers, Ethical handling of a customer’s personal information, Down payment scenarios, Interest rate adjustment scenarios, Power of Attorney (POA) scenarios, Permissible reasons for requesting a credit report, Scenarios of notifying the underwriter of a change in the borrower’s application or status

11.39- Explain Proper disclosures by MLOs if there is a potential conflict of interest, Scenarios surrounding situations with borrower’s and co-borrower’s

11.40- Explain Permissible acts of MLOs regarding the appraisal of a client’s property, Scenarios surrounding situations with borrower’s undisclosed income, Permissible acts after discovering deposits inconsistent with borrower’s income included on application, Scenarios involving a gift received by the borrower,

11.41- Explain Scenarios of notifying a loan officer if a borrower has applied with other companies for additional mortgages, Scenarios surrounding a borrower providing information on income,

11.42- Explain Cybersecurity scenarios , General business ethics, Scenarios where borrower has provided false information, Scenarios where borrower is seeking advice,

11.43- Explain Scenarios where the MLO is falsifying information on behalf of a borrower, Providing suitable unsolicited advice to a borrower, Scenarios where outside parties/individuals to the loan attempt to obtain information on a loan or about a borrower

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