Uniform State Content (SAFE Act)Question 392 of 400
Which of the following would most likely be considered prohibited conduct subject to disciplinary action under the SAFE Act?
a.Referring a borrower to a licensed real estate agent
b.Disclosing all fees the borrower will pay at closing
c.Recommending that the borrower shop and compare multiple loan offers
d.Instructing a borrower to falsify income information on a loan application
Explanation
Instructing or helping a borrower to falsify information on a loan application is fraud and a clear violation subject to disciplinary action. The other choices, such as referrals, full fee disclosure, and encouraging comparison shopping, are legitimate, consumer-friendly practices.
Law Reference: SAFE ActPractice all 400 questions free — no signup required.
Related questions on this topic
- Which federal agency was given rulemaking authority over the SAFE Act after passage of the Dodd-Frank Act?
- A licensed MLO in State A wishes to originate loans for borrowers purchasing homes in State B. Under the SAFE Act, the MLO must:
- Under the SAFE Act, an MLO must report certain changes to NMLS, such as a new criminal charge or a change of address, in order to:
- The pre-licensing education requirement under the SAFE Act must be completed through:
- Which of the following individuals is acting as a mortgage loan originator and would generally need to be licensed or registered?
- What is the purpose of requiring MLOs to disclose their unique identifier to consumers?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review