National and UST Mortgage 1 Practice Exam 2026 - Free Mortgage Practice Questions and Study Guide

A 'material' act or omission in the context of deceptive practices is one that affects a significant decision. This means that the action or information in question has the potential to influence the outcome of a decision that a person or entity would make. In the realm of finance and mortgages, for instance, if a lender or broker withholds crucial information, and that information would have led the consumer to make a different choice (like not proceeding with a loan), it is considered material.

The concept of materiality is tied to the impact of the act or omission on the decision-making process. If it significantly alters the choices available or the understanding of those choices, it is material. This distinguishes it from acts that might be frequent, malicious, or intentional but do not necessarily affect crucial decisions in a meaningful way. These attributes might play a role in assessing intent or frequency but do not inherently define the significance of the action or omission.