If a mortgage loan originator discards a file which has been closed for five years by simply throwing it in a dumpster, what could be the consequence?

The correct choice highlights the importance of properly disposing of records that contain sensitive information. Even if a file has been closed for five years, it is crucial for mortgage loan originators to follow strict protocols for disposal to protect personal and financial data of clients. The act of throwing files in a dumpster does not meet the legal and ethical standards for record disposal, which typically require secure methods such as shredding. Failing to ensure proper disposal can result in disciplinary action, as it may lead to potential breaches of privacy and violations of regulations, such as those set forth by the Gramm-Leach-Bliley Act and other privacy protection laws. Ensuring proper disposal helps to maintain client trust and upholds the integrity of the lending profession.