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

Prepare for the New Jersey Residential Mortgage Lending Act Exam. Use flashcards, multiple choice questions with explanations to excel in your test. Gear up for success!

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.

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