Conflict Of Interest Quiz Questions

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Quizzes Created: 4 | Total Attempts: 4,743
Questions: 6 | Attempts: 815

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Conflict Of Interest Quiz Questions - Quiz

Take this quiz and learn more about conflict of interest!


Questions and Answers
  • 1. 

    Any party to a mortgage loan transaction who has a direct or indirect personal, business or financial relationship results in a conflict of interest that may influence the transaction.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The statement is true because any personal, business, or financial relationship that a party to a mortgage loan transaction has can create a conflict of interest. This conflict of interest has the potential to influence the transaction, potentially leading to biased decisions or actions that may not be in the best interest of all parties involved.

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  • 2. 

    AmeriFirst prohibits employees from being directly or indirectly involved in the origination, processing, underwriting, closing and/or funding of a mortgage loan for the following types of personal relationships (check all that apply):

    • A.

      Spouse

    • B.

      Son/Stepson

    • C.

      Daughter/Stepdaughter

    • D.

      Brother or Sister

    • E.

      Parent or mother/father-in-law

    • F.

      Grandparent/Grandchild

    Correct Answer(s)
    A. Spouse
    B. Son/Stepson
    C. Daughter/Stepdaughter
    D. Brother or Sister
    E. Parent or mother/father-in-law
    F. Grandparent/Grandchild
    Explanation
    AmeriFirst has a policy that prohibits employees from being involved in the origination, processing, underwriting, closing, and/or funding of a mortgage loan for certain personal relationships. The relationships listed in the answer, including spouse, son/stepson, daughter/stepdaughter, brother or sister, parent or mother/father-in-law, and grandparent/grandchild, are all included in the types of personal relationships that are prohibited from being involved in the mortgage loan process at AmeriFirst.

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  • 3. 

    AmeriFirst prohibits employees from being directly or indirectly involved in the origination, processing, underwriting, closing and/or funding for the following types of other relationships (check all that apply):

    • A.

      Seller for borrower's purchase mortgage

    • B.

      Holds land contract for the borrower

    • C.

      Resides with the borrower

    • D.

      Has a business relationship with the borrower

    • E.

      Has a financial interest in the transaction

    • F.

      Has any other direct or indirect interest in the transaction as it relates to the borrower

    Correct Answer(s)
    A. Seller for borrower's purchase mortgage
    B. Holds land contract for the borrower
    C. Resides with the borrower
    D. Has a business relationship with the borrower
    E. Has a financial interest in the transaction
    F. Has any other direct or indirect interest in the transaction as it relates to the borrower
    Explanation
    AmeriFirst prohibits its employees from being involved in various types of relationships that could create a conflict of interest or compromise the integrity of the origination, processing, underwriting, closing, and funding processes. These prohibited relationships include being a seller for the borrower's purchase mortgage, holding a land contract for the borrower, residing with the borrower, having a business relationship with the borrower, having a financial interest in the transaction, and having any other direct or indirect interest in the transaction as it relates to the borrower.

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  • 4. 

    If you are unsure if a conflict of interest exists, you should:

    • A.

      Proceed with working on the file.

    • B.

      Contact [email protected] for assistance.

    • C.

      Ask a co-worker for their opinion.

    Correct Answer
    B. Contact [email protected] for assistance.
    Explanation
    If you are unsure if a conflict of interest exists, it is always best to seek assistance and clarification from the appropriate authority. In this case, contacting [email protected] would be the most appropriate course of action as they are likely to have the knowledge and expertise to provide guidance on conflicts of interest. Asking a co-worker for their opinion may not provide a reliable or unbiased answer, and proceeding with working on the file without seeking clarification could potentially lead to ethical or legal issues.

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  • 5. 

    Which of the following statements are true? Check all that apply.

    • A.

      If you are assigned a file where a conflict of interest exists, you should notify the individual who assigned it to you so it can be reassigned.

    • B.

      Loan officers and other employees interested in obtaining financing for themselves may submit their application to any licensed loan officer in the company. The loan officer must designate the file as an employee loan in the system.

    • C.

      Employees who have a family member applying for a mortgage may not be assigned the file, but may still be involved indirectly.

    • D.

      Loan officers are prohibited from directly or indirectly originating loans for themselves.

    Correct Answer(s)
    A. If you are assigned a file where a conflict of interest exists, you should notify the individual who assigned it to you so it can be reassigned.
    B. Loan officers and other employees interested in obtaining financing for themselves may submit their application to any licensed loan officer in the company. The loan officer must designate the file as an employee loan in the system.
    D. Loan officers are prohibited from directly or indirectly originating loans for themselves.
    Explanation
    Employees who have a family member applying for a mortgage may not be assigned the file, but may still be involved indirectly. The statement is true as it states that employees with a family member applying for a mortgage cannot directly handle the file, but they can still be involved indirectly in the process. This is to avoid any potential conflict of interest.

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  • 6. 

    All employees have an affirmative responsibility to contact Human Resources if future events occur that alter the answers to the Conflict of Interest Survey completed during the hiring process. By completing the survey, employees are attesting to the accuracy of the information submitted and agree to provide updates to Human Resources if any changed circumstance require modification to the survey. Please be aware that failure to provide full and accurate responses or updates may result in disciplinary action. Please type your first and last name below to acknowledge that you have read this statement and agree to adhere to this policy.

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  • Current Version
  • Apr 07, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • May 06, 2013
    Quiz Created by
    Sheilamstrong
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