Ethics and Professional Conduct Flashcards
7 cards from real CMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Ethics and Professional Conduct flashcards as text
A CMC who suspects a borrower may be a victim of elder financial abuse should:
Answer: Note the concern and report to Adult Protective Services or the appropriate authority
CMCs have an ethical and in many states a legal duty to report suspected elder financial abuse to protective authorities.
The Home Mortgage Disclosure Act (HMDA) requires mortgage lenders to collect and report data primarily to:
Answer: Identify and combat discriminatory lending patterns
HMDA data is used by regulators, community groups, and the public to identify potential patterns of lending discrimination or redlining.
When a CMC faces an ethical dilemma with no clear regulatory guidance, the most appropriate first step is to:
Answer: Consult the CMC Code of Ethics and seek guidance from a professional ethics hotline or compliance officer
Professional codes of ethics and compliance resources exist precisely to guide practitioners through situations not explicitly covered by regulation.
A CMC who receives a subpoena for client records must:
Answer: Comply with the legal process while notifying the client if permissible
A valid subpoena is a legal compulsion that overrides confidentiality obligations; the CMC should comply and notify the client unless notification is prohibited.
Which of the following best describes 'redlining' in the context of mortgage lending ethics?
Answer: Refusing to lend or offering inferior terms in neighborhoods based on racial or ethnic composition
Redlining is the illegal and unethical practice of denying or restricting financial services in geographic areas based on the racial or ethnic makeup of those areas.
A CMC who realizes they lack the expertise to properly advise a client on a highly specialized loan product should:
Answer: Disclose the limitation and refer the client to a specialist or seek additional training before advising
Competence is a core ethical obligation; CMCs must recognize their limitations and refer or educate themselves before advising on complex products.
Which of the following statements about the Mortgage Acts and Practices (MAP) Rule is accurate?
Answer: It prohibits misrepresentations in commercial communications about mortgage products
The MAP Rule (Regulation N) prohibits material misrepresentations in any commercial communication about a mortgage product, covering all media and all types of mortgage professionals.