Please
Review the below Case Study and Answer the following question in the Comments
Section Below:
Chet has been
an MLO with an origination company called Mount Eagle Loans for about two
years, and he has made a lot of friends in that time, because he is one of the
good guys. He likes to help his friends, co-workers, and his borrower clients
when they need help.
For example, an
applicant named Vickie came in to Mount Eagle recently to apply for a mortgage
loan, and she met with Chet. And, even though he didn’t really have time to
meet with her, Chet was very friendly and helpful. He took her information and
documentation, and filled out the application. Then, he sent her on her way.
Chet was short
on time because he had a ton of other clients whose loans he was tracking –
which is the main reason why Chet passed Vickie’s loan off to his co-worker
Fred. Here’s what happened:
An hour or so
after Vickie left, Fred shuffled over to Chet’s desk and slumped into a chair.
Fred was down because he had just gotten notice from the superintendent that
his license had been suspended because of a complaint from a former client.
“I can’t afford
not to have a job!” Fred said. “I’ve got mouths to feed.”
Ever the good
helper, Chet grabbed Vickie’s file and tossed it on the desk in front of Fred,
and said, “Here, take this.”
“No,” Fred
said, “I can’t take money out of your pocket. I’ll figure something out.”
“Look,” Chet
said, “I really don’t even have time to really look after that file the way I
should, so you would be doing me a favor.”
“Yeah, but I
can’t have my name and ID going out on any loans right now, anyway,” Fred said.
“Just use
mine,” Chet replied. “It’s already on there, and nobody has to know. Soon,
you’ll be back on your feet and no one will the wiser.”
“Thanks, man,”
Fred said. “You’re one of the good ones.”
Whether the
complaint against Fred was valid or not, he did a pretty good job with Vickie’s
loan. Sure, there was the appraisal check that she had erroneously sent to the
wrong address, but Fred straightened that out. Her loan went on to close a
little ahead of schedule, Fred made some much-needed money, and Chet’s name was
not tarnished in the process. Everybody won!
Now, in the
space below, take some time to answer some questions:
1.
Is
Fred breaking any laws by working on Vickie’s loan?
A.
No,
there is no reason why he can’t work on her loan
B.
No,
because he was getting paid to do so
C.
Yes,
Fred is unlicensed, therefore cannot touch Vickie’s loan
D.
Yes,
Fred did not tell Chet that he was unlicensed
2.
Is
Chet violating any laws by allowing Fred to work on Vickie’s loan?
A.
No,
Chet is not responsible for Fred’s actions
B.
Yes,
Chet allowed Fred to do business under his unique identifier because Fred
didn’t have a license
C.
No,
Fred never told Chet he was unlicensed
D.
No,
the only person at fault here is Fred
3.
Will
Chet be in any hot water for paying part of his loan commission to Fred?
A.
Yes,
it is against the law to pay a commission or valuable consideration to any
unlicensed or unregistered person for performing any of the functions of a
mortgage loan originator
B.
No,
Fred will be the only one facing punishment because he was the one acting
without a license
C.
No,
neither Fred nor Chet will be in hot water for receiving commission on Vickie’s
loan
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