A mortgage agent completes a mortgage application with a client who has provided all necessary documentation. Before submitting the application to a lender, the agent notices a discrepancy in the client's stated income compared to the provided employment letter. What is the agent's most appropriate course of action?

Question: A mortgage agent completes a mortgage application with a client who has provided all necessary documentation. Before submitting the application to a lender, the agent notices a discrepancy in the client's stated income compared to the provided employment letter. What is the agent's most appropriate course of action?

Answer options: ✅ Contact the client immediately to clarify the discrepancy and ensure the application accurately reflects the client's financial situation.

• Proceed with the application using the higher income stated verbally by the client, assuming it was an oversight in the employment letter.
• Submit the application as is, as it is the lender's responsibility to verify income details.
• Temporarily withhold the application and advise the client to amend their employment letter to match their stated income.

Correct answer: Contact the client immediately to clarify the discrepancy and ensure the application accurately reflects the client's financial situation.

Explanation: Mortgage agents are responsible for ensuring the accuracy and completeness of all information provided in a mortgage application. Addressing discrepancies upfront maintains integrity and prevents potential fraud, aligning with diligent 'Know Your Client' principles.