A Loan Estimate shows total loan costs subject to 10% cumulative tolerance of $3,000. At closing, these costs total $3,400. The lender must provide a cure by crediting the borrower how much?
Correct Answer
B) $100
The 10% tolerance on $3,000 allows for increases up to $300 (10% of $3,000 = $300). The actual increase is $400, so the violation is $100 ($400 - $300). The lender must cure this by crediting the borrower $100.
Why This Is the Correct Answer
The 10% tolerance on $3,000 allows for increases up to $300 (10% of $3,000 = $300). The actual increase is $400, so the violation is $100 ($400 - $300). The lender must cure this by crediting the borrower $100.
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 wants to refinance from a 15-year mortgage with 8 years remaining to a new 30-year mortgage to reduce monthly payments. The interest rate will increase by 0.5%. What is the PRIMARY concern for tangible net benefit?
Next Question
A mortgage broker tells an appraiser that the property 'needs to come in at $350,000 because that's what the borrower paid for it.' This statement: