A borrower requests that all loan communications be sent only to their workplace address because they are in the process of divorce and don't want their spouse to see mortgage-related documents. How should the MLO handle this request?
Correct Answer
D) Verify the borrower's identity and document their communication preference, then comply with the request
Under privacy and communication preference guidelines, borrowers have the right to designate where they receive loan-related communications. The MLO should verify the borrower's identity, document their preference in the loan file, and comply with the request. There is no requirement to send documents to multiple addresses or obtain spousal consent for communication preferences, as long as proper delivery requirements are met.
Why This Is the Correct Answer
Under privacy and communication preference guidelines, borrowers have the right to designate where they receive loan-related communications. The MLO should verify the borrower's identity, document their preference in the loan file, and comply with the request. There is no requirement to send documents to multiple addresses or obtain spousal consent for communication preferences, as long as proper delivery requirements are met.
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A borrower's construction loan has a 12-month term, but construction is only 60% complete when the loan matures due to weather delays and permit issues. The borrower has been making interest-only payments on time. What typically happens next?