A borrower calls an MLO asking about current interest rates for a 30-year fixed mortgage. The MLO quotes a rate but the borrower doesn't provide any financial information. What disclosure requirement applies to this communication?
Correct Answer
C) No specific disclosure is required for general rate information
General rate quotes without specific loan terms or borrower financial information do not trigger specific disclosure requirements under TILA. However, if specific terms are discussed based on borrower information, additional disclosures may be required.
Why This Is the Correct Answer
General rate quotes without specific loan terms or borrower financial information do not trigger specific disclosure requirements under TILA. However, if specific terms are discussed based on borrower information, additional disclosures may be required.
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A mortgage company offers MLOs a bonus system where they receive an extra $200 for each loan that closes within 21 days of application. This compensation arrangement is:
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