A borrower qualifies for both conventional and USDA rural development loans. The MLO presents conventional options but argues that USDA loans 'take too long to process' to justify not presenting them. This reasoning:
Correct Answer
B) Violates anti-steering rules regardless of processing time concerns
Processing time alone cannot justify steering a borrower away from a loan category. MLOs must present options from each qualifying category and allow borrowers to make informed decisions about timing trade-offs. Operational considerations cannot override anti-steering requirements.
Why This Is the Correct Answer
Processing time alone cannot justify steering a borrower away from a loan category. MLOs must present options from each qualifying category and allow borrowers to make informed decisions about timing trade-offs. Operational considerations cannot override anti-steering requirements.
More Origination Questions
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