A borrower mentions they are looking for a home in a 'family-friendly neighborhood with good schools' because they have young children. The MLO suggests several areas but avoids mentioning a particular neighborhood because it has a high concentration of elderly residents. This action is:
Correct Answer
B) Prohibited steering based on familial status assumptions
Under the Fair Housing Act, steering occurs when housing professionals direct customers toward or away from certain areas based on protected characteristics. Even when the borrower mentions preferences, the MLO cannot make assumptions about neighborhood suitability based on the age composition of residents, as this constitutes steering based on familial status.
Why This Is the Correct Answer
Under the Fair Housing Act, steering occurs when housing professionals direct customers toward or away from certain areas based on protected characteristics. Even when the borrower mentions preferences, the MLO cannot make assumptions about neighborhood suitability based on the age composition of residents, as this constitutes steering based on familial status.
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A borrower obtained a conventional loan with 15% down payment on July 1, 2020. The loan has a 30-year amortization schedule. Due to property appreciation, the current LTV is 75%. The borrower has made all payments on time. When can the borrower first request PMI cancellation based on the original property value?
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A first-lien mortgage loan is considered a Higher-Priced Mortgage Loan (HPML) under TILA when the APR exceeds the Average Prime Offer Rate (APOR) by what threshold?