Which of the following actions is prohibited under the Fraud and Deceptive Practices Prohibitions?

Obtaining a license by fraud or misrepresentation is prohibited under the Fraud and Deceptive Practices Prohibitions because such actions undermine the integrity of the mortgage lending system. Licensing is intended to ensure that individuals and businesses meet certain standards of competence and ethical behavior. When someone gains a license through fraudulent means, it not only violates legal and regulatory standards, but it also puts consumers at risk by allowing unqualified or dishonest individuals to operate in the industry. This practice can lead to widespread harm, as it disrupts trust and security in financial transactions.

The other options involve practices that are entirely legal and ethical within the context of mortgage lending. Providing clear terms and conditions, offering competitive interest rates, and training staff on ethical practices are all important for fostering a transparent and responsible lending environment. These actions contribute to better borrower education and enhance trust between lenders and consumers.