A borrower provides 3 months of bank statements, but one month shows the account was closed and reopened due to fraudulent activity. How should this be handled?
Correct Answer
B) Obtain a letter from the bank explaining the account closure and fraud resolution
Account closures due to fraud require explanation and documentation from the bank to verify the circumstances and resolution. The lender needs assurance that the fraud was resolved and that the account history accurately reflects the borrower's financial position, not fraudulent activity.
Why This Is the Correct Answer
Account closures due to fraud require explanation and documentation from the bank to verify the circumstances and resolution. The lender needs assurance that the fraud was resolved and that the account history accurately reflects the borrower's financial position, not fraudulent activity.
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An MLO receives an appraisal that values a property at $50,000 below the contract price. The borrower asks the MLO to request a reconsideration of value. The MLO should:
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