A borrower's loan is submitted to LP and receives an 'Accept' recommendation, but the MLO notices the credit score used was 580, while the borrower's middle score is actually 620. What should the MLO do?
Correct Answer
B) Resubmit the loan with the correct credit score for a potentially better recommendation
When there's an error in the credit score submitted to LP, the MLO should resubmit with the correct information. A higher credit score (620 vs 580) could result in better pricing, reduced conditions, or different loan program eligibility. Using incorrect information, even if it results in approval, violates accuracy requirements and could lead to issues at closing or post-closing.
Why This Is the Correct Answer
When there's an error in the credit score submitted to LP, the MLO should resubmit with the correct information. A higher credit score (620 vs 580) could result in better pricing, reduced conditions, or different loan program eligibility. Using incorrect information, even if it results in approval, violates accuracy requirements and could lead to issues at closing or post-closing.
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