SAFE MLO Test - Ethics Questions and Answers Already Passed
Chunking - Answers An investor is pitching the sale of properties as opportunities to new real
estate investors, promising improbably high returns and loan risks, this could be considered:
Disparate Impact - Answers A lender has a minimum loan amount that they will lend on, that
minimum loan amount is $150,000. The average home value to a minority in the neighborhood
is $100,000, so the lender does not help anyone in that minority lender, this would be:
illegal and unethical - Answers You have completed the necessary Pre-licensure education,
testing, and application requirements to obtain your mortgage license. You have been hired by a
brokerage and expect your background check to clear shortly. You have a friend who is eager to
proceed with a loan application and your manager at the brokerage has said that you can start
the file under his/her name, then switch it back to your name once your license arrives. This
action is:
legal but unethical - Answers You have been working with a client for the past six months who
has finally been approved by the lender and is ready to close. Two days before closing, interest
rates drop and you explain to your customer that you are unable to go with a different lender at
the better rate because of the standing commitment to the current lender. You also inform your
client that breaking a rate with a lender is very damaging to the broker-lender relationship. After
explaining the situation, your client still chooses to back out of the loan and go with a different
loan officer. Your client's action in this situation is:
illegal and unethical - Answers You are working with a customer who has disclosed they have
new payment obligations that do not appear on their credit report. You realize that your
customer qualifies for a loan based on figures calculated using only payment obligations
reported on their credit. In order to ensure your client qualifies, you decide to exclude the
payment obligations that do not appear on the credit report. This action is:
Overt discrimination - Answers A credit card company has a written policy that anyone between
the age of 21-27 can only have a credit limit of $1,000 and anyone over 30 automatically gets a
credit limit of $5,000. This is an example of:
When the information supplied by the applicant appears fraudulent - Answers When is a loan
officer authorized to refuse to accept a loan application?
Illegal Property Flipping - Answers A transaction where the buyers have signed a contract to
purchase real property, but have the intention of immediately selling it to another buyer can be a
sign of:
The MARS Rule - Answers What rule made it illegal to charge upfront fees and requires
disclosures in ads for mortgage assistance relief providers?
proceed; it is ok to for you to pay for their meals - Answers You just closed a loan with a
Chunking - Answers An investor is pitching the sale of properties as opportunities to new real
estate investors, promising improbably high returns and loan risks, this could be considered:
Disparate Impact - Answers A lender has a minimum loan amount that they will lend on, that
minimum loan amount is $150,000. The average home value to a minority in the neighborhood
is $100,000, so the lender does not help anyone in that minority lender, this would be:
illegal and unethical - Answers You have completed the necessary Pre-licensure education,
testing, and application requirements to obtain your mortgage license. You have been hired by a
brokerage and expect your background check to clear shortly. You have a friend who is eager to
proceed with a loan application and your manager at the brokerage has said that you can start
the file under his/her name, then switch it back to your name once your license arrives. This
action is:
legal but unethical - Answers You have been working with a client for the past six months who
has finally been approved by the lender and is ready to close. Two days before closing, interest
rates drop and you explain to your customer that you are unable to go with a different lender at
the better rate because of the standing commitment to the current lender. You also inform your
client that breaking a rate with a lender is very damaging to the broker-lender relationship. After
explaining the situation, your client still chooses to back out of the loan and go with a different
loan officer. Your client's action in this situation is:
illegal and unethical - Answers You are working with a customer who has disclosed they have
new payment obligations that do not appear on their credit report. You realize that your
customer qualifies for a loan based on figures calculated using only payment obligations
reported on their credit. In order to ensure your client qualifies, you decide to exclude the
payment obligations that do not appear on the credit report. This action is:
Overt discrimination - Answers A credit card company has a written policy that anyone between
the age of 21-27 can only have a credit limit of $1,000 and anyone over 30 automatically gets a
credit limit of $5,000. This is an example of:
When the information supplied by the applicant appears fraudulent - Answers When is a loan
officer authorized to refuse to accept a loan application?
Illegal Property Flipping - Answers A transaction where the buyers have signed a contract to
purchase real property, but have the intention of immediately selling it to another buyer can be a
sign of:
The MARS Rule - Answers What rule made it illegal to charge upfront fees and requires
disclosures in ads for mortgage assistance relief providers?
proceed; it is ok to for you to pay for their meals - Answers You just closed a loan with a
