A borrower qualifies for a conventional loan with a 740 credit score but also meets VA eligibility requirements. The MLO only presents conventional loans, stating 'VA loans have funding fees that make them more expensive.' This approach:
Correct Answer
B) Violates anti-steering rules by making assumptions about cost without analysis
MLOs cannot make blanket assumptions about loan categories without proper analysis. VA loans may have funding fees, but they might still be beneficial depending on the borrower's down payment capability, interest rates, and other factors. The MLO must present options from each qualifying category.
Why This Is the Correct Answer
MLOs cannot make blanket assumptions about loan categories without proper analysis. VA loans may have funding fees, but they might still be beneficial depending on the borrower's down payment capability, interest rates, and other factors. The MLO must present options from each qualifying category.
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