Quiz: A Conflict Of Interest (Coi)

10 Questions | By Sheilamstrong | Updated: Oct 13, 2022 | Attempts: 1977

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Quiz: A Conflict Of Interest (Coi) - Quiz

A conflict of interest is a situation in which the interests of parties collide. Take this multiple choice questions-based quiz and know more. What is your definition of a conflict of interest? This quiz will certainly broaden your understanding. The informative quiz contains various theoretical and application-based questions that will help you learn more about it. Share the quiz with your friends and family if you find it helpful. All the best!

Questions and Answers

1.

An employee is prohibited from being directly or indirectly involved in the origination, processing, underwriting, closing or funding of a mortgage loan for the following family member(s) - check all that apply:
- A.
  
  Mother/Mother-in-Law
- B.
  
  Father/Father-in-Law
- C.
  
  Brother/Sister
- D.
  
  Daughter/Step-Daughter
- E.
  
  Son/Step-Son
- F.
  
  Grandparent
- G.
  
  Grandchild
- H.
  
  Spouse
2.

An employee can work on his or her own loan, as long as his or her name does not appear on any of the documents in the file.
- A.
  
  True
- B.
  
  False
3.

Which of the following instances represent a conflict of interest that would prohibit the employee from being involved in the origination, processing, underwriting, closing, or funding of the transaction?
- A.
  
  The employee is the seller for a borrower's purchase mortgage.
- B.
  
  The employee resides with the borrower.
- C.
  
  The employee has financial interest in the transaction.
- D.
  
  All of the Above
4.

When a Loan Officer wishes to obtain a mortgage loan for themselves, which of the following procedures is correct?
- A.
  
  The Loan Officer may input the application into the LOS, but may not pull credit and must list another licensed Loan Officer as the Loan Officer of record.
- B.
  
  The Loan Officer may input the application into the LOS, may pull credit, but then must have the processor complete the required documentation and disclosures.
- C.
  
  The Loan Officer may not originate the loan either directly or indirectly and must submit an application to any other licensed Loan Officer in the company.
- D.
  
  The Loan Officer may pull credit, but must provide the application to another licensed Loan Officer for input into the LOS.
5.

An employee may upload supporting documents for their own transaction into the LOS system, providing they do not input any data into the LOS for their loan.
- A.
  
  True
- B.
  
  False
6.

The following are the ways that the Research Oversight Committee is involved in the conflict of interest procedure:
- A.
  
  As determined by the ROC Chair and Co-Chair, serves as the Conflict of Interest Committee for the review and approval of SFI's > $40K
- B.
  
  For SFIs over $40K, ROC evaluates and decides on management plan edits.
- C.
  
  To offer opinions and influence on research
- D.
  
  To offer opinions and influence on research
7.

Which of the following statements regarding a profession's code of ethics is most accurate?
- A.
  
  A code of ethics makes sure that all members of a profession act ethically at all times.
- B.
  
  A code of ethics communicates the principles and expected behavior of a profession's members.
- C.
  
  A code of ethics always includes standards of conduct.
- D.
  
  None of the above
8.

Which of the following statements is most accurate?
- A.
  
  Ethical behavior at times may be illegal
- B.
  
  Legal behavior is always ethical behavior
- C.
  
  Legal standards are a benchmark for ethical behavior.
- D.
  
  All of the above
9.

Investment professionals have a special responsibility to act ethically because:
- A.
  
  The industry is heavily impacted by regulations.
- B.
  
  The profession has adopted a code of ethics.
- C.
  
  They are entrusted to protect client's assets.
- D.
  
  None of the above
10.

Which of the following most likely determines unethical behavior?.
- A.
  
  External factors such as environmental or cultural elements
- B.
  
  The person's intrinsic motivation.
- C.
  
  The person's lifestyle and character
- D.
  
  All of the above