Under which regulation is a Mortgage Loan Officer required to report fraudulent disclosures made by a borrower?

Under which regulation is a Mortgage Loan Officer required to report fraudulent disclosures made by a borrower?

• A. Financial Crimes Enforcement Network (FINCEN)
• B. Fair Housing Act (FH Act)
• C. Federal Trade Commission (FTC)
• D. Telemarketing Sales Rule

Answer: (D)

A Mortgage Loan Officer is required to report fraudulent disclosures made by a borrower under the Financial Crimes Enforcement Network (FINCEN) regulation. FINCEN is part of the U.S. Department of the Treasury and is primarily responsible for detecting and preventing money laundering and other financial crimes. It requires reporting certain suspicious activities that may indicate fraudulent behavior, including the submission of false information during mortgage transactions. In the context of mortgage lending, if a loan officer identifies any fraudulent disclosures, they are obligated to report these through the appropriate channels mandated by FINCEN. This reporting helps ensure the integrity of the financial system and protects consumers from deceitful practices. The other options listed, such as the Fair Housing Act, the Federal Trade Commission, and the Telemarketing Sales Rule, deal with various aspects of consumer protection, discrimination, and telemarketing practices but do not specifically pertain to the reporting of fraudulent disclosures by borrowers in the mortgage industry. Thus, they would not be the appropriate regulations under which a Mortgage Loan Officer would fulfill their duty to report such fraudulent activity.

A Mortgage Loan Officer is required to report fraudulent disclosures made by a borrower under the Financial Crimes Enforcement Network (FINCEN) regulation. FINCEN is part of the U.S. Department of the Treasury and is primarily responsible for detecting and preventing money laundering and other financial crimes. It requires reporting certain suspicious activities that may indicate fraudulent behavior, including the submission of false information during mortgage transactions.

In the context of mortgage lending, if a loan officer identifies any fraudulent disclosures, they are obligated to report these through the appropriate channels mandated by FINCEN. This reporting helps ensure the integrity of the financial system and protects consumers from deceitful practices.

The other options listed, such as the Fair Housing Act, the Federal Trade Commission, and the Telemarketing Sales Rule, deal with various aspects of consumer protection, discrimination, and telemarketing practices but do not specifically pertain to the reporting of fraudulent disclosures by borrowers in the mortgage industry. Thus, they would not be the appropriate regulations under which a Mortgage Loan Officer would fulfill their duty to report such fraudulent activity.