Question

Which of the following might be considered unethical performance as a mortgage originator?

A. Describing the mortgage program to make sure the customer understands the loan.
B. Having the consumer sign blank forms, so they don't have to come to your office.
C. Counseling the consumer.
D. Having the loan application package prepared in advance.

Answer 1

An unethical performance as a mortgage originator includes having the consumer sign blank forms, while an ethical performance includes counseling the consumer and describing the mortgage program.

Step-by-step explanation:

One example of an unethical performance as a mortgage originator is having the consumer sign blank forms so they don't have to come to the office. This practice is unethical because it can be used to manipulate or deceive the consumer and may lead to fraudulent activities.

Another unethical performance is making subprime loans to borrowers who have low or no income and no job. These loans are risky and can result in borrowers defaulting on their payments.

On the other hand, ethical performances as a mortgage originator include describing the mortgage program to make sure the customer understands the loan and counseling the consumer to ensure they make informed decisions.