A borrower discovers at the closing table that the lender changed the loan product from a fixed-rate to an adjustable-rate mortgage without providing a new Loan Estimate. The borrower wants to proceed but is concerned about the change. What is the MLO's best course of action?
Correct Answer
B) Stop the closing and provide a new Loan Estimate with a new three-day waiting period
Under TRID rules, a change from fixed-rate to adjustable-rate mortgage is a significant change requiring a new Loan Estimate and a new three-business-day waiting period before closing, regardless of borrower consent.
Why This Is the Correct Answer
Under TRID rules, a change from fixed-rate to adjustable-rate mortgage is a significant change requiring a new Loan Estimate and a new three-business-day waiting period before closing, regardless of borrower consent.
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A borrower has a primary mortgage of $300,000 and a HELOC with a $50,000 outstanding balance. They want to refinance both debts into a single new mortgage of $360,000. The extra $10,000 will cover closing costs and a small amount of cash back. How should this be classified?
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A borrower makes an extra $200 principal payment with their regular payment in month 15 of a 30-year fixed-rate mortgage. What is the primary effect on the remaining loan term?