Coercion is the act of using force, threats, or pressure to influence another party’s actions or decisions. Imposing arbitrary and unreasonable time limits to force a borrower to act quickly—when such urgency is not legitimate—is considered a form of coercion.
“Coercion includes pressuring consumers to make decisions in haste or under duress, such as requiring immediate action to lock in a loan rate.”
— SAFE MLO National Test Study Guide; CFPB Consumer Protection Resources
This practice is prohibited and unethical.
[References:, , SAFE MLO National Test Study Guide, , CFPB, Unfair, Deceptive, or Abusive Acts or Practices, , ]
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