Mortgage Loan Originator Ethics

1.Luis Ortega qualifies for a 30-year loan at 6.25% with no points. Originator Mara Ellison is paid an extra $1,800 if he takes a 7.10% loan instead. She prints only the 7.10% option and tells Luis it is the one for him. What should Mara do?

2.Priya Shah qualifies for a 6.10% loan and a 6.50% loan with a lender credit. She told originator Devon Hale she will keep the loan long enough that 6.10% costs her less. Devon earns more on the 6.50% loan and pushes it because everyone takes the credit. What should Devon do?

3.Jonah Reed told originator Anita Brooks he wants the lowest payment he qualifies for and expects to move in three years. He qualifies for a lower-payment adjustable loan and a higher-rate fixed loan. The fixed loan raises Anita's pay, and she locks it. What should Anita have done?

4.Naomi Park is approved by Lender A at 6.40% and also qualifies at Lender B at 6.95%. Originator Chris Daley earns more at Lender B. He tells Naomi the 6.40% approval is not really available. What should Chris do?

5.Marcus Webb is approved by Harbor Bank at 6.30% and by Northline at 6.85%. Wholesale originator Helen Cho is paid more when Northline funds the loan. She sends the file to Northline and never mentions Harbor. What should Helen do?

6.Underwriting has approved Grace Lin for a 6.15% loan. Originator Omar Farid also has a 7.00% loan that raises his bonus. He tells Grace she qualifies only for the 7.00% loan. What should Omar do?

7.Evan Brooks selected a 6.20% loan he qualifies for. Before the lock, originator Ruth Keller learns her branch bonus is higher on a 6.90% loan that is still offered. She changes the lock and tells Evan the cheaper loan fell off the sheet. What should Ruth do?

8.Sandra Ortiz qualifies for a lower-cost loan and a higher-cost loan. The higher-cost loan pays originator Paul Nguyen more. Paul says the cheaper program is only for people who shop around, then starts the costlier application. What should Paul do?

9.Colin Briggs qualifies for a 15-year loan at 5.70% and a 30-year loan at 6.60%. He asked for the lowest rate whose payment he can afford, and the 15-year payment fits his budget. Originator Inez Ward earns more on the 30-year loan and prepares only that application. What should Inez do?

10.Rosa Nguyen and Adam Keller each have a 730 score, the same income, and the same down payment. Originator Felix Grant quotes Adam 6.25%. After noting Rosa's national origin on the call sheet, he quotes her 6.90%. What should Felix do?

11.Hannah Cole and Mark Ito have the same credit, income, and job history. Hannah is pregnant and has planned a short leave. Originator Denise Shaw demands extra employer letters from Hannah that she did not ask Mark for, and she delays only Hannah's file. What should Denise do?

12.Ben Ortiz receives disability income that is documented and expected to continue. Carla Voss earns wages. Their scores, debts, and loan amounts match. Originator Neil Abbott takes Carla's application and tells Ben not to bother applying. What should Neil do?

13.Irene Walsh is 71 and Kyle Trent is 34. They present the same credit, income, and down payment. Originator Lila Morse gives Kyle a 45-day lock at the posted price and offers Irene only a 10-day lock at a higher price. What should Lila do?

14.Unmarried partners Nina Shah and Paul Ruiz have the same scores and income as married applicants June and Eli Hart. Originator Tom Becker charges the partners a higher origination fee and waives that increase for the married couple. What should Tom do?

15.Andre Lewis and Steven Clark have matching credit, income, and assets. Originator Gina Holt issues Andre a same-day preapproval. After writing Steven's race on the intake form, she tells Steven to come back with a cosigner. What should Gina do?

16.Maya Chen and Alan Price have the same credit and income and want the same loan size. Originator Brad Solis notes the racial makeup of Maya's neighborhood, offers her only a higher-cost loan, and offers Alan a prime loan. What should Brad do?

17.Samir Haddad and Greg Allen qualify on the same numbers. During the application, originator Cathy Nguyen asks Samir about his religion, writes down the answer, and then prices his loan worse than Greg's. What should Cathy do?

18.Emily Frost and Nathan Boyd have the same score, income, employment, and down payment. Originator Victor Lang gives Nathan the rate he qualifies for and tells Emily that program is closed. His notes mention her sex and no credit problem. What should Victor do?

19.Originator Holly Grant advertises her private shop as the Official Home Loan Desk beside a seal that looks like a federal agency mark. The ad never says she is a private originator. What should Holly change?

20.Originator Craig Benton mails a postcard that says the reader was selected by the Housing Department. His private company appears only as a return address. He holds no government appointment. What should Craig do?

21.A billboard originator Fiona Walsh bought quotes 4.25%. That rate requires two discount points, a 740 score, and 40% down. Typical readers of the board cannot meet those terms, and the board states none of them. What should Fiona do?

22.Originator Derek Sloan emails a subject line that reads like an FHA notice saying the recipient's payment is approved. Derek is a broker, not a government office, and no payment has been approved. What should Derek do?

23.Originator Yara Simmons posts a banner reading Government-backed rate: 3.99%. That figure was a one-day jumbo quote for a borrower with relationship pricing. Visitors who match the ad cannot get 3.99%. What should Yara do?

24.On a radio spot, originator Glenn Parker says mortgage rates are as low as 5%. His sheet that day starts at 6.40% unless the borrower pays a buydown the ad never mentions. The sample borrower in the ad could not pay that fee. What should Glenn do?

25.Originator Pamela Ortiz prints flyers under the name U.S. Mortgage Authority with an eagle mark. The flyer never says her company is private. Borrowers have asked whether she works for the government. What should Pamela do?

26.Originator Ivan Petrov advertises a VA rate of 4.50% for all veterans. That price is a 15-year loan with points. The VA 30-year loan his ad appears to offer is priced at 6.10%. What should Ivan do?

27.Originator June Harlow mails a piece that looks like a government refund check. Inside, she quotes 5.10%. That figure expired last month and was never available at the credit tier of the people on her list. What should June do?

28.Pete Alvarez told originator Cindy Brooks to stop calling him. She plans one more confirmation call and leaves his printed application, with his Social Security number showing, on a desk other staff share. What should Cindy do?

29.Nora Blake asked originator Seth Klein to remove her number from the dialer. Seth leaves her open file on the front counter, where the next appointment can see her income and account numbers. What should Seth do?

30.Past client Ellen Cho texted originator Malik Rowe and said not to call her again. Malik sets her paper application on the reception desk and adds her to a callback list for a new rate. What should Malik do?

31.Jordan Hale's spouse told originator Amy Duarte not to call the household. Amy leaves their joint application face up in a conference room that other clients use between appointments. What should Amy do?

32.Originator Brett Cole's office list shows that Dana Ruiz asked yesterday not to be called. Brett dials anyway and clips Dana's application to a cubicle wall where walk-up clients can read her income. What should Brett do?

33.At an open house, Wesley Park told originator Nina Feldman not to call him. Nina leaves his clipboard application on the display table and later dials the number written on it. What should Nina do?

34.On a recorded line, Aisha Grant told originator Colin Wright to take her off his list. Colin prints her application, leaves it beside the shared copier, and schedules a follow-up call. What should Colin do?

35.A realtor's client, Omar Vidal, told originator Paige Howell not to call him again. Paige puts his unsigned application in the shared printer tray and plans to call that evening about a rate lock. What should Paige do?

36.Borrower Keisha Lane emailed originator Rob Stein and asked him not to phone. Rob leaves her full application on an unlocked desk overnight and asks a colleague to call her in the morning. What should Rob do?

37.A friend asks originator Carla Diaz to put the friend's cousin on a purchase loan. The cousin will not live in the house or make the payments. The real buyer has weak credit and will quietly repay the cousin. What should Carla do?

38.Builder Aaron Pike asks originator Melissa Tran to have his employee Greg sign as buyer of a spec house. Aaron says he will take the house back after closing, and Greg will never move in. What should Melissa do?

39.Investor Lila Chen asks originator Benito Cruz to make Lila's niece the borrower on a rental. The niece has clean credit, will not pay, and will not manage the property. Lila will collect the rent and send the payments. What should Benito do?

40.A colleague offers originator Dana Shah a fee to open a loan on a vacant-lot address. The named applicant is invented, no buyer exists, and the loan would draw on a warehouse line. What should Dana do?

41.Someone offers originator Kyle Ito cash to submit a loan on a house that is not for sale. The person named as borrower does not know a loan is being opened. What should Kyle do?

42.Originator Priya Nair is offered a cash bonus to reuse a closed borrower's identity on a new application. The house has no purchase contract, and nobody has contacted that person about a new loan. What should Priya do?

43.Borrower Nate Ellis asks originator Sandra Pell to type monthly income of $9,400. His pay stubs show $6,100, and he has no other documented pay. He says to type the higher figure so the ratio will pass. What should Sandra do?

44.A realtor tells originator Malik Rowe to add a $2,000 monthly bonus for borrower Tess Calder. The employer letter does not show that bonus, and Tess has no history of receiving it. What should Malik do?

45.Processor Alan tells originator Hope Griffin to type the higher income borrower Camille Dunn stated on the phone. The documents show less, and Alan says underwriting will not notice the difference. What should Hope do?

46.Originator Gail Horton has refinanced widow Ruth Pellam every eight months. Each new loan rolls fresh fees into the balance. The rate barely changes, and Ruth's equity keeps falling. Gail wants to start another refinance. What should Gail do?

47.Borrower Owen Blake declined credit life and a home warranty. Originator Carla Diaz adds both costs to the loan amount and does not mention them before Owen signs. What should Carla do?

48.Borrower Henry Moss has substantial equity and a tight budget. Originator Denise Shaw builds a high-fee cash-out that pays off no debt Henry named. The fees consume the cash, and Denise knows he cannot sustain the new payment. What should Denise do?

49.This is borrower Nadine Cole's third refinance in fourteen months with originator Tom Becker. She wanted a small rate drop. Each loan added points and a new origination fee that erased the savings and cut her equity. Tom is preparing a fourth. What should Tom do?

50.On the phone, borrower Andre Lewis declined optional credit insurance. At the table, originator Gina Holt checks the box that adds the premium to the loan and rushes him to sign. What should Gina do?

51.Originator Victor Lang knows borrower Emily Frost will struggle with the new payment. The refinance pulls equity out to pay his fee and a payoff charge on the old loan. She did not ask for cash, and she would have less cushion than she has now. What should Victor do?

52.Originator Yara Simmons adds an optional rate-lock protection fee and a discount-club membership that borrower Samir Haddad never requested. Both amounts are financed into the loan. What should Yara do?

53.Each time rates dip slightly, originator Ivan Petrov calls borrower Pamela Ortiz and rewrites her loan. The new fees exceed the interest she saves, and her equity drops at every closing. He wants to rewrite it again this week. What should Ivan do?

54.Originator June Harlow's refinance for borrower Glenn Parker adds a debt-protection product he did not request. It cashes out just enough to pay her fee. His rate stays the same, and his equity falls. What should June do?

55.Title representative Lena Ortiz tells originator Pete Alvarez she will pay him $300 for every borrower file he sends to her company. The borrowers do not know about the offer. What should Pete do?

56.Appraiser Noah Blake offers originator Cindy Brooks tickets to a sold-out game for every appraisal she orders from him. The number of tickets follows the number of orders. What should Cindy do?

57.A title representative offers originator Seth Klein a monthly marketing stipend. The stipend is paid only in months when Seth's referrals reach a set count. What should Seth do?

58.An appraisal firm offers to cut the rent on originator Amy Duarte's office if she sends the firm every purchase appraisal. The discount grows as her referral count grows. What should Amy do?

59.Title company Harbor View offers to pay for originator Brett Cole's conference trip if he sends the company ten closings a month. The trip is not a class the title company offers to the public. What should Brett do?

60.After each appraisal order, appraiser Dana Ruiz hands originator Nina Feldman a gift card. Dana says the cards are a thank-you for keeping the assignments coming. What should Nina do?

61.A title company offers to pay the salary of originator Colin Wright's assistant if Colin sends the company all of his title work. What should Colin do?

62.An appraisal contact offers originator Paige Howell a percentage of each appraisal fee on files she assigns to that contact. What should Paige do?

63.Title representative Omar Vidal tells originator Rob Stein the company will erase the title fees on Rob's own refinance if Rob keeps sending borrower files there. What should Rob do?

64.Borrower Keisha Lane's debt ratio sits just over the limit because of a $420 monthly car payment. Originator Gail Horton tells her to leave that car off the application. The loan is in Keisha's name and she pays it every month. What should Gail do?

65.Borrower Henry Moss has a private student loan that a quick credit pull does not display. He tells originator Tom Becker the monthly payment. Tom tells him to leave it off so the file stays inside the ratio. What should Tom do?

66.Borrower Nadine Cole says she pays a credit card that is in her name and not yet on the credit report. Originator Victor Lang tells her to keep it off the form because the file should count only what the report shows. What should Victor do?

67.Borrower Owen Blake cosigned an auto loan. He is liable for it, and he has no proof that the other driver will keep paying. Originator Yara Simmons tells him not to list the loan. What should Yara do?

68.Borrower Camille Dunn pays monthly child support under a court order. Originator Hope Griffin tells her to leave that support off the application so the debt ratio will qualify. What should Hope do?

69.Borrower Nate Ellis pays his uncle $250 a month under a written personal loan. Originator Sandra Pell tells Nate the family loan is not a real debt and should stay off the application. What should Sandra do?

70.Last week borrower Tess Calder signed an auto lease that is not on her credit report yet. She tells originator Malik Rowe the payment. Malik tells her not to mention the lease on the application. What should Malik do?

71.Borrower Andre Lewis pays a furniture-store account every month. He has already told originator Gina Holt the balance and the payment. Gina tells him not to write that account on the application. What should Gina do?

72.Borrower Emily Frost personally guaranteed a business loan and pays it each month from her own account. Originator Ivan Petrov tells her to keep that debt off the home-loan application. What should Ivan do?

73.Originator Pete Alvarez owns 40% of a title agency. He sends borrower Keisha Lane there and never says he is an owner. Keisha asks who owns the agency. What should Pete do?

74.Originator Cindy Brooks's spouse owns the title company she uses on every purchase. Borrower Henry Moss does not know about the marriage or the ownership. Cindy emails him the company's link. What should Cindy do?

75.Originator Seth Klein owns and manages the title office in his building. He tells borrower Nadine Cole she has to use that office. He does not mention that he owns it. What should Seth do?

76.Originator Amy Duarte owns Harbor Title through a holding company. She refers borrower Owen Blake there. Neither Amy nor the loan papers mention the tie. What should Amy do?

77.Originator Brett Cole explains the rate and the lender fees, then requires his own title company for borrower Camille Dunn. She asks whether he has any stake in that company. He says no. He does own it. What should Brett do?

78.Originator Nina Feldman tells borrower Nate Ellis that her partner handles title, then sends his file to a company she owns. She never says she is the owner or that he may choose someone else. What should Nina do?

79.Originator Colin Wright's email signature sends borrowers to his own title company through a referral link. The signature shows his phone number and no ownership note. Borrower Tess Calder is about to use the link. What should Colin do?

80.At application, originator Paige Howell checks a box sending title work to a company she owns. Borrower Andre Lewis asks if she has a stake. She answers no. What should Paige do?

81.Originator Rob Stein owns the title company he recommends to borrower Emily Frost. He tells her other title companies are not approved, which is not true, and he never discloses his ownership. What should Rob do?

82.Closing for borrower Keisha Lane is set for Friday. A required written disclosure of changed loan terms is not ready. Originator Gail Horton tells the processor to close Friday and send that disclosure on Monday. What should Gail do?

83.An updated disclosure of worse terms would push borrower Henry Moss past his rate lock and his purchase date. Originator Tom Becker withholds the update so the signing can stay on the calendar. What should Tom do?

84.Borrower Nadine Cole asked for the notice that tells her who will service the loan. Originator Victor Lang holds that notice back so funding and recording are not delayed. What should Victor do?

85.Originator Yara Simmons knows a change in borrower Owen Blake's loan cost requires a new written disclosure before he signs. The notary is already booked. She withholds the new disclosure so the appointment can stay. What should Yara do?

86.The appraisal on borrower Camille Dunn's purchase is finished, and a copy is due to her before closing. Originator Hope Griffin holds the copy so Camille cannot raise a concern and delay the date. What should Hope do?

87.Originator Ivan Petrov has a closing-cost disclosure that shows higher fees than borrower Nate Ellis was told to expect. Ivan holds it until Nate is seated at the table, hoping he will not walk away and the contract date will hold. What should Ivan do?

88.On a refinance, originator June Harlow tells the closer to leave out the notice that lets borrower Glenn Parker cancel for a few days after signing. June wants the loan to fund the same day. What should June do?

89.A required written disclosure on borrower Tess Calder's file is still missing the afternoon before closing. Originator Paige Howell tells the staff to fund anyway so the purchase contract does not expire. What should Paige do?

90.Borrower Andre Lewis's rate lock expired, and the new terms are worse. Originator Rob Stein withholds the updated disclosure and has Andre sign yesterday's papers so the purchase can still close on the contract date. What should Rob do?

91.Borrower Keisha Lane sent originator Gail Horton a pay stub whose font does not match the employer's other stubs. The employer tells Gail the gross pay on that stub was altered. What should Gail do?

92.Originator Tom Becker sees that borrower Henry Moss's year-to-date pay is mathematically impossible. Henry admits a friend edited the PDF of the stub. What should Tom do?

93.A payroll company tells originator Victor Lang that the stub borrower Nadine Cole uploaded was not issued by them. The income on the stub is higher than the company's records. What should Victor do?

94.Originator Yara Simmons compares borrower Owen Blake's pay stub with his wage statement and sees that the stub numbers were typed over. Owen says he only wanted the numbers to look clearer. What should Yara do?

95.Borrower Camille Dunn uploads a stub from an employer she left six months ago. The dates were changed so the job looks current. Originator Hope Griffin can still read the old employer name under a smudge. What should Hope do?

96.Human resources tells originator Ivan Petrov that borrower Nate Ellis does work there, but the hourly rate on the stub Nate sent was increased. Nate does not deny changing it. What should Ivan do?

97.Two pay stubs from borrower Tess Calder carry the same check number and different gross amounts. Originator Paige Howell asks her about it. Tess says she fixed the smaller stub. What should Paige do?

98.Originator Rob Stein sees white-out on a scanned pay stub from borrower Andre Lewis. Andre says he corrected a typo. Payroll later reads the figure under the white-out, and it is lower. What should Rob do?

99.After underwriting has the file, originator June Harlow discovers that borrower Emily Frost's pay stub is forged. The income underwriting approved matches the forged amount, not the employer's records. What should June do?

100.Borrower Keisha Lane is buying a house she will rent to tenants. She has told originator Gail Horton she will not live there. Keisha's realtor tells Gail to mark the house as Keisha's primary residence to win the lower rate. What should Gail do?

101.Borrower Henry Moss already lives in a home he owns. He will rent out the house he is buying. His branch manager tells originator Tom Becker to check primary residence on the application. What should Tom do?

102.Borrower Nadine Cole will keep living in her current house. Her adult child will live in the house she is buying. Originator Victor Lang is told to call Nadine's new loan a primary residence. What should Victor do?

103.Borrower Owen Blake will rent the new property to short-term guests all year and will not stay there himself. A colleague tells originator Yara Simmons to mark the property as a second home so the price is better. What should Yara do?

104.Borrower Camille Dunn is buying near a future job but will not move for a year. A tenant's lease starts at closing. The seller's agent pressures originator Hope Griffin to use primary-residence pricing. What should Hope do?

105.Borrower Nate Ellis told originator Ivan Petrov that the current tenants will stay in the house. The agent then hands Nate a form stating Nate will move in as his primary residence and tells Ivan to let him sign it. What should Ivan do?

106.Parent borrower Tess Calder will not occupy the house she is buying. Her child will live there, and the loan will be in Tess's name. A relative pressures originator Paige Howell to state that Tess will occupy the house. What should Paige do?

107.Manager Rob Stein tells originator June Harlow to use primary-residence pricing for borrower Andre Lewis. Andre will not move in for a year, and he has signed a tenant lease that starts at closing. What should June do?

108.Borrower Emily Frost already told originator Derek Sloan she will rent the new house to tenants. She then asks him to change the application from investment to primary residence so the rate will drop. What should Derek do?