A lender's compensation structure pays MLOs higher commissions for non-QM loans than for conventional or government loans. An MLO can still comply with anti-steering rules by:
Correct Answer
C) Presenting the required loan options from each category regardless of compensation
Anti-steering provisions require MLOs to present appropriate loan options from each category for which the borrower qualifies, regardless of compensation differences. The MLO cannot let compensation considerations influence which loans are presented to borrowers.
Why This Is the Correct Answer
Anti-steering provisions require MLOs to present appropriate loan options from each category for which the borrower qualifies, regardless of compensation differences. The MLO cannot let compensation considerations influence which loans are presented to borrowers.
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?
People Also Study
Federal Mortgage-Related Laws
23% of exam
General Mortgage Knowledge
23% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Uniform State Test Content
12% of exam
Previous Question
A borrower's W-2 shows base salary of $50,000 plus $15,000 in overtime pay. The borrower has worked overtime consistently for 15 months. How should the overtime income be treated?
Next Question
A borrower has a credit score of 620 and is applying for a conventional loan. What is the most likely impact on their loan terms?