How should the PLM address a complaint from a borrower regarding unfair lending practices?

• A. Acknowledge, investigate, remedy if possible, and document the outcome and lessons.
• B. Dismiss the complaint without review.
• C. Publicly accuse the borrower.
• D. Delay response for several weeks.

Answer: (A)

When a borrower raises a complaint about unfair lending practices, handle it with a structured, transparent process. Start by acknowledging the complaint to show you’re taking it seriously. Then conduct an impartial investigation, reviewing the loan file, underwriting decisions, pricing, disclosures, and communications to determine whether unfair or discriminatory practices occurred. If the investigation indicates action is needed, remedy it promptly and clearly communicate what will be done and by when. Finally, document the outcome and the lessons learned to prevent recurrence and to support continuous improvement. This approach demonstrates commitment to fair lending, protects the lender from regulatory risk, and preserves borrower trust. Dismissing the complaint without review, publicly accusing the borrower, or delaying response undermines due process, professionalism, and timely resolution.