Final answer:
During the loan application process, MLO Jon from ABC Mortgage cannot ask potential borrowers about race, color, national origin, religion, sex, gender, sexual orientation, marital status, age, income from public assistance, or childbearing plans, as these inquiries are prohibited by the Equal Credit Opportunity Act (ECOA) and could lead to discrimination.
Step-by-step explanation:
MLO Jon from ABC Mortgage must adhere to regulations regarding the loan application process. There are specific questions that Jon is prohibited from asking a potential borrower due to federal laws like the Equal Credit Opportunity Act (ECOA). During the loan application process, Jon may never ask about personal information that is not related to the borrower's creditworthiness. For instance, it is illegal to inquire about:
- Race, color, or national origin
- Religion
- Sex, gender, or sexual orientation
- Marital status
- Age (provided the applicant is old enough to enter a contract)
- Whether the applicant receives income from a public assistance program
- Plans for childbearing or the number of children
These questions are considered discriminatory and could lead to bias in the lending decision, which is strictly against the law.