A loan originator is working with a borrower who qualifies for only two loan products from the creditor's available options. How many loan options must be presented to comply with anti-steering requirements?
Correct Answer
B) Only the two available loan products
The anti-steering rule requires presentation of loan options from each of the three categories, but only to the extent that the creditor maintains such loan types and the consumer qualifies for them. If only two qualifying loan products are available, only those two need to be presented.
Why This Is the Correct Answer
The anti-steering rule requires presentation of loan options from each of the three categories, but only to the extent that the creditor maintains such loan types and the consumer qualifies for them. If only two qualifying loan products are available, only those two need to be presented.
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 their current mortgage to access $50,000 in cash for home improvements. The new loan will have a 0.25% higher interest rate but the same term. What additional documentation is required to demonstrate tangible net benefit?
Next Question
Which document must be provided to the borrower at least 3 business days before consummation of the loan?