Loan Officer Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success!

The scenario where collecting a rate lock-in fee from a client constitutes a violation of the mortgage broker's act hinges on the regulatory framework that governs mortgage broker activities. Generally, mortgage brokers are allowed to charge certain fees as part of their services, but these fees must comply with the prescribed regulations.

In this case, collecting a rate lock-in fee directly from a client may be problematic if the broker does not have the authority to charge such a fee or if it is considered excessive or unapproved under the relevant state or federal laws governing mortgage broker activities. Regulatory bodies often have strict guidelines regarding the collection of fees to ensure transparency and fairness in the lending process. When a mortgage broker collects such a fee without proper disclosures or in a manner that conflicts with established regulations, it is viewed as a violation.

Other scenarios presented do not indicate a violation as they either pertain to acceptable practices, such as collecting fees for governmental requirements or representing offers based on qualifications, both of which are generally permissible under the law when done appropriately. Thus, option B stands out as the scenario that raises a red flag in terms of compliance with the mortgage broker's act.