A lender has an affiliated business arrangement with an appraisal company. The lender may receive which of the following from the appraisal company?
Correct Answer
B) Return on ownership interest only
Under RESPA's AfBA provisions, the referring party may only receive a return on their ownership interest and payments for services actually performed, but not fees based on referral volume.
Why This Is the Correct Answer
Under RESPA's AfBA provisions, the referring party may only receive a return on their ownership interest and payments for services actually performed, but not fees based on referral volume.
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A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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During final underwriting review, a lender discovers the borrower's debt-to-income ratio was miscalculated, requiring additional reserves. This necessitates the borrower to bring an extra $5,000 to closing. How should this be handled under TRID?