What does NOT constitute an unconscionable tactic in mortgage lending?

The correct answer highlights that knowingly collecting disclosed fees from the borrower does not constitute an unconscionable tactic in mortgage lending. This is because transparency is key in any financial transaction, particularly in the context of mortgage lending. When fees are disclosed upfront and communicated clearly to the borrower, they have the opportunity to understand the costs associated with their loan and to make informed decisions.

Unconscionable tactics typically involve a lack of transparency, exploitation, or coercive practices. For example, collecting undisclosed fees or using high-pressure sales tactics undermines the borrower's ability to make informed choices and is considered unethical. Similarly, exploiting a borrower's lack of knowledge promotes an imbalance in the relationship between the lender and borrower, which can lead to unfair lending practices. In contrast, collecting disclosed fees allows for a fair and open relationship, where borrowers can assess and accept the costs involved without facing hidden surprises.