CRAM ARCADE Open App

Which of the following actions by an MLO would most clearly constitute prohibited conduct under state mortgage law?

Uniform State Test (UST) · 11% of the SAFE exameasy

Show the answer and explanation

Correct answer: Making a false statement on a mortgage loan application with the intent to deceive

Making false statements on mortgage loan applications with the intent to deceive is prohibited conduct under state mortgage law and is also a federal crime under 18 U.S.C. § 1014. This is among the most serious violations an MLO can commit. "Recommending a borrower work with a particular real..." is incorrect because recommending a real estate agent, while subject to RESPA if compensation is exchanged, is not itself prohibited conduct simply because of a prior business relationship. "Making a false statement on a mortgage loan applicat..." is incorrect because fee differences alone, within legal limits, are not prohibited. "s employer does not offer" is incorrect because declining to offer certain products is a business decision, not prohibited conduct.

Drill 2,078 more questions like this, free

CRAM ARCADE has the full NMLS question bank, timed practice exams, focus drills on your weakest category, flashcards and spaced repetition. No credit card.

Start studying free