A borrower qualifies for conventional, FHA, and non-QM loans. The MLO presents one option from each category but all have significantly different loan amounts ($400k conventional, $350k FHA, $450k non-QM). This presentation:
Correct Answer
B) Complies with anti-steering requirements by presenting all qualifying categories
Anti-steering provisions require presenting loan options from each qualifying category, but don't mandate identical loan amounts. Different loan categories may have different maximum loan limits or qualification criteria that result in varying loan amounts, which is permissible under the regulation.
Why This Is the Correct Answer
Anti-steering provisions require presenting loan options from each qualifying category, but don't mandate identical loan amounts. Different loan categories may have different maximum loan limits or qualification criteria that result in varying loan amounts, which is permissible under the regulation.
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A mortgage company's compensation plan pays MLOs different commission rates based on the geographic region where the property is located, with higher rates for loans in rural areas where processing is more complex. The commission rate does not vary based on any loan terms. This geographic-based compensation:
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During an automated underwriting submission to DU, the system returns a message stating 'Property Type Not Eligible.' The property is a single-family home built in 1975. What is the most likely reason for this message?