A borrower provides a verification of employment (VOE) that shows their base salary, but during verbal verification, the employer mentions the employee is currently on unpaid medical leave. How should this information be handled?
Correct Answer
B) Require updated written documentation reflecting current employment status
Current employment status is critical for loan approval. If verbal verification reveals information that contradicts written documentation, updated written verification must be obtained to accurately reflect the borrower's current situation and ability to repay the mortgage.
Why This Is the Correct Answer
Current employment status is critical for loan approval. If verbal verification reveals information that contradicts written documentation, updated written verification must be obtained to accurately reflect the borrower's current situation and ability to repay the mortgage.
More Mortgage Knowledge Questions
A borrower is comparing two loan offers: Loan A has no points and 4.5% interest rate, Loan B has 2 points and 4.0% interest rate. The loan amount is $400,000. How much will the borrower pay upfront for the points on Loan B?
A lender charges a 1% origination fee on all loans. For a borrower obtaining a $250,000 mortgage, what is the maximum origination fee that can be charged without violating the points and fees test under the ATR/QM rule for a first-lien mortgage?
Under what circumstances can a Qualified Mortgage include a prepayment penalty?
A borrower is considering paying discount points to reduce their interest rate. Each point costs 1% of the loan amount and reduces the rate by 0.25%. On a $300,000 loan, how much would the borrower pay for 2 discount points?
A borrower asks about the difference between discount points and origination fees. What is the most accurate explanation?
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A borrower makes their regular payment plus an additional $1,000 toward principal on the first payment of their 30-year mortgage. Approximately how much total interest will this save over the life of the loan at 5% interest?
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A borrower pays 2 discount points on a $200,000 loan. How much did the borrower pay in discount points?