Ethics

Question 1

Ethics

Answer 1

The actions that we take and decisions we make that reflect that system of beliefs

Question 2

Morality

Answer 2

An overall system of beliefs or values, which help us to decide between right and wrong, good and bad

Question 3

Predatory Lending

Answer 3

Unsavory lending practices that are intended to strip wealth/income from unwary borrowers

Question 4

Steering

Answer 4

When the borrower is encouraged by the lender towards a particular product that makes more sense for the lender’s waller than the borrower

Question 5

Packing

Answer 5

Adding unwanted/ unrelated extras in the loan and having the borrower pay for it

Question 6

Adding a Co-Signer

Answer 6

When the MLO is well aware the cosigner has no intention of paying any part of the mortgage. False impression that the borrower has the capacity to pay the loan

Question 7

Reverse Redlining

Answer 7

Targeting vulnerable or underserved groups and possibly pushing a subprime products upon them for reasons other than credit quality

Question 8

Contract Knavery

Answer 8

When the lender sneaks burdensome provisions into the loan contract without the borrowers knowledge

Question 9

Unbundling

Answer 9

Charging fees more than once

Question 10

Blockbusting

Answer 10

Persuading owners to sell property cheaply because of fear of people of another class.race moving into the neighborhood