A Mortgage Loan Officer Is Found to Have Provided False

question 10

Multiple Choice

A mortgage loan officer is found to have provided false documentation that resulted in a lower interest rate on a loan approved for one of her friends.The loan was subsequently added to a loan pool, securitized and sold.Which of the following risks applies to the false documentation by the employee?

• A)Market risk.
• B)Credit risk.
• C)Operational risk.
• D)Technological risk.
• E)Sovereign risk.

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Definitions:

Fair Labor Standards Act

The Fair Labor Standards Act is a U.S. law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers.

Minimum Hourly Wage

The lowest legal amount that can be paid to workers for an hour of labor.

Working Hours

Working hours are the periods of time during which an individual is obligated to perform their job duties at their place of employment.

Employee Privacy

Refers to the rights and expectations of privacy an employee has while working for an employer, including issues around personal information protection and surveillance at the workplace.