A borrower asks an MLO to expedite processing because they claim to have a family emergency requiring quick access to cash-out proceeds. Later, the MLO learns this was false. What is the appropriate response?
Correct Answer
D) Evaluate whether the false urgency indicates other potential misrepresentations
Good faith requires MLOs to be alert to potential fraud indicators. While a false urgency claim alone may not disqualify a borrower, it should prompt the MLO to more carefully verify other aspects of the application to ensure overall truthfulness.
Why This Is the Correct Answer
Good faith requires MLOs to be alert to potential fraud indicators. While a false urgency claim alone may not disqualify a borrower, it should prompt the MLO to more carefully verify other aspects of the application to ensure overall truthfulness.
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A borrower receives their Loan Estimate and calls the MLO confused about why the 'Cash to Close' amount is different from the down payment amount they discussed. The borrower thinks there's an error. What is the MLO's best response?