Scenario 1 Misrepresentation Regarding Status of Refinancing This case involves a mortgage company making numerous misrepresentations and misleading omissions which were eventually settled in court, in favor of the plaintiff. The plaintiff, who we'll call Ms. Devan Lee, sought to refinance a mortgage with the "XYZ Mortgage Services" company. Devan could be considered "unsophisticated" in matters of real estate and had owned her home for just three years. She needed expert advice because she was now one month behind on her mortgage, as she informed the MLO, Prakash. The year before, Devan had been laid off after 16 years of employment; however she had acquired a new part-time job. Despite Devan's part-time employment, Prakash assured Devan that she would qualify for a loan "regardless of the job situation," explaining that XYZ was a "lending company" (which was a false statement since XYZ did not fund its own loans). Ultimately, though, Devan was denied the loan some months later. A series of problems emerged in sequence. Prakash falsely claimed that the refinance would go through and Devan's existing mortgage would be paid off by September. However the loan was never funded because of default, even though Devan made it clear that she was behind during their initial communications. When Devan signed documents on at least one occasion, Prakash did not provide copies of the paperwork, nor did he give her an estimate of closing costs. Behind the scenes, Prakash also submitted a false title report because there was a $3,000 outstanding lien and he knew that unless the lien was satisfied, the financier would not fund the loan. Nevertheless the loan was denied, and to make matters worse, Prakash (on behalf of XYZ Mortgage) never notified Devan of the application denial, in direct violation of federal regulations. In fact, at one point, Prakash led the customer to believe that the loan had been approved when it had not. Because of all these issues and delays, Devan was unable to catch up on her mortgage and subsequently faced foreclosure and loss of her home. What are the ethical issues and unethical behavior exhibited by the MLO in this scenario? Using 2 to 3 paragraphs, please identify at least three areas where the MLO failed to exhibit ethical behavior and conform to federal regulations. If possible, include references to the applicable federal regulation(s) that were violated