A real estate agent calls a mortgage loan originator (MLO) and states that a potential property buyer needs to be prequalified for a mortgage. The real estate agent states that the home's sellers do not want the potential buyers to purchase the home because they affiliate with a certain religion. In which of the following ways should the MLO respond?

While referring the real estate agent to another MLO may seem like an option, it fails to address the discriminatory issue at hand. This response avoids confronting the ethical and legal implications of the situation, allowing discrimination to persist without challenge.

This choice suggests that the MLO would actively participate in discouraging the buyers from applying, which is unethical and potentially illegal. Instead of upholding fair housing principles, this response would further enable discrimination against the potential buyers based on their religious affiliation.

Advising the borrowers to seek another home based on potential discrimination undermines their rights and perpetuates a discriminatory practice. Instead of addressing the problem directly, this response allows the situation to continue unchallenged, which is against fair housing laws.