Practical Exercise

In this module, you$$ve learned about some of the laws that affect lender practices, legal and ethical advertising, general ethics in mortgage lending, and about mortgage fraud$$what it is and can look like and lender responsibilities for detection, prevention, and reporting.

$$You will be presented with $3$ case studies and questions about each of them. Please provide a brief written answer to those questions in the next lesson.

Case Study A

Loan officer Joe Wagner has taken an application from a customer who is buying a property from the estate of Ruby Lawson. Janet Lawson is Ruby$$s daughter and the executrix of the estate.

Everything is in order so that Janet will be able to convey title and Joe is pleased to know this as Ruby was his stepmother and jointly owned the property with his father. Once the loan closes and the house is sold, the estate will be settled Joe will finally receive his inheritance from his father.

Case Study B

Julio$$s company just started offering a new program, and he wants to advertise. The biggest advantage of the program is that there is zero down payment required for a thirty$-$year fixed$-$rate loan. He wants a very short and simple ad that gets right to the point. The text of Julio$$s ad reads:$30-$year Fixed Rate Loans with Zero Down Payment$$followed by his contact information, company contact information, NMLS numbers and other state required information.

Case Study C

Jorge is a mortgage loan originator in Pittsburgh. He owns a condo in a coastal resort area in Florida that he and his family use as a vacation home. He is good friends with several real estate agents who refer business to him, and he often lets them use the condo for weekend get$-$aways.