Which practice is explicitly prohibited by licensees when engaging with borrowers?

Which practice is explicitly prohibited by licensees when engaging with borrowers?

• A. Offering educational workshops on mortgages
• B. Promising quick transactions without basis
• C. Setting appointments for applicants
• D. Providing follow-up on loan applications

Answer: (B)

Promising quick transactions without basis is explicitly prohibited by licensees when engaging with borrowers because it can be misleading and create false expectations. The New Jersey Residential Mortgage Lending Act emphasizes the need for honesty and transparency in lending practices. By making promises of speed without a factual basis, licensees could manipulate or coerce borrowers into making hasty decisions, potentially leading to regret or financial harm. This practice not only undermines the integrity of the lending process but can also contribute to broader issues within the mortgage industry, such as predatory lending. Therefore, maintaining accurate and realistic timelines is crucial for fostering trust and ensuring informed decision-making by borrowers.

Promising quick transactions without basis is explicitly prohibited by licensees when engaging with borrowers because it can be misleading and create false expectations. The New Jersey Residential Mortgage Lending Act emphasizes the need for honesty and transparency in lending practices. By making promises of speed without a factual basis, licensees could manipulate or coerce borrowers into making hasty decisions, potentially leading to regret or financial harm. This practice not only undermines the integrity of the lending process but can also contribute to broader issues within the mortgage industry, such as predatory lending. Therefore, maintaining accurate and realistic timelines is crucial for fostering trust and ensuring informed decision-making by borrowers.