A borrower locked a rate 45 days ago for a 60-day period. Due to title issues, closing will be delayed by 10 days beyond the lock expiration. The borrower wants to extend the lock. What factor is LEAST likely to affect the extension decision?
Correct Answer
B) The borrower's current debt-to-income ratio
The borrower's debt-to-income ratio, established during the initial loan approval and rate lock, is least likely to affect a rate lock extension decision. Extensions typically depend on market conditions, lender policies, the reason for delay, and sometimes extension fees, but not on re-evaluation of the borrower's DTI unless there have been material changes to income or debts.
Why This Is the Correct Answer
The borrower's debt-to-income ratio, established during the initial loan approval and rate lock, is least likely to affect a rate lock extension decision. Extensions typically depend on market conditions, lender policies, the reason for delay, and sometimes extension fees, but not on re-evaluation of the borrower's DTI unless there have been material changes to income or debts.
More Origination Questions
A borrower has a construction-to-permanent loan with a 12-month construction phase. At month 10, construction is only 60% complete due to delays. What is the most likely outcome?
For a construction-to-permanent loan, when must the initial Closing Disclosure be provided for the construction phase?
During a refinance transaction, the appraiser determines that significant unpermitted additions were made to the property. The appraiser wants to discuss this with the MLO before finalizing the report. What should the MLO do?
An appraiser discovers that a property has significant foundation issues that were not disclosed. The appraiser reduces the property value by $25,000 and includes detailed comments about the structural problems. The loan officer is upset because this will kill the deal. Under AIR, the loan officer:
An MLO's compensation structure includes higher payments for certain loan products. When is it acceptable to recommend these higher-compensated products?
People Also Study
Federal Mortgage-Related Laws
23% of exam
General Mortgage Knowledge
23% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Uniform State Test Content
12% of exam