A borrower's loan application receives an 'Accept' recommendation from Loan Prospector (LP) with specific conditions listed. What must happen next?
Correct Answer
C) The lender must verify that all conditions specified by LP are met
An 'Accept' recommendation from LP means the loan is approved subject to meeting specific conditions. The lender must verify and document that all conditions specified in the LP recommendation are satisfied before closing.
Why This Is the Correct Answer
An 'Accept' recommendation from LP means the loan is approved subject to meeting specific conditions. The lender must verify and document that all conditions specified in the LP recommendation are satisfied before closing.
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 their Loan Estimate and calls the MLO confused about why the 'Cash to Close' amount is different from the down payment amount they discussed. The borrower thinks there's an error. What is the MLO's best response?
Next Question
A lender discloses a $200 tax service fee on the Loan Estimate but later discovers the borrower's property requires a more complex tax monitoring service costing $275. The borrower has already expressed intent to proceed. Which approach is correct?