A borrower receives a gift of $25,000 from their employer as part of an employee assistance program. What documentation is required beyond the standard gift letter?
Correct Answer
B) Employment verification and documentation of the employer assistance program terms
Employer gifts require additional scrutiny to ensure they're legitimate gifts and not disguised compensation or loans. Documentation of the formal employee assistance program and verification that this is an established benefit program helps validate the gift's legitimacy and compliance with employment laws.
Why This Is the Correct Answer
Employer gifts require additional scrutiny to ensure they're legitimate gifts and not disguised compensation or loans. Documentation of the formal employee assistance program and verification that this is an established benefit program helps validate the gift's legitimacy and compliance with employment laws.
More Origination Questions
A borrower has a construction-to-permanent loan with a 12-month construction phase. At month 10, construction is only 60% complete due to delays. What is the most likely outcome?
For a construction-to-permanent loan, when must the initial Closing Disclosure be provided for the construction phase?
During a refinance transaction, the appraiser determines that significant unpermitted additions were made to the property. The appraiser wants to discuss this with the MLO before finalizing the report. What should the MLO do?
An appraiser discovers that a property has significant foundation issues that were not disclosed. The appraiser reduces the property value by $25,000 and includes detailed comments about the structural problems. The loan officer is upset because this will kill the deal. Under AIR, the loan officer:
An MLO's compensation structure includes higher payments for certain loan products. When is it acceptable to recommend these higher-compensated products?
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Previous Question
A borrower receives a Loan Estimate on Monday. On Thursday, the property appraisal reveals significant foundation issues requiring $15,000 in repairs. When must the lender provide a revised Loan Estimate if this affects the loan terms?
Next Question
An MLO presents three loans to a borrower: a 30-year conventional at 4.0%, a 15-year conventional at 3.5%, and a 30-year FHA at 4.25%. All loans are in the lowest cost category within their respective loan types. Which statement about compliance is correct?