A mortgage broker arranges a loan and receives a 2% origination fee from the borrower and a 0.5% yield spread premium from the lender. Under RESPA Section 8, this arrangement is:
Correct Answer
B) Permitted if both fees are disclosed on the Loan Estimate and Closing Disclosure
Under RESPA Section 8, a mortgage broker may receive compensation from both the borrower and lender, provided that no portion of the lender-paid compensation is conditioned on referring the borrower to specific settlement service providers, and all compensation is properly disclosed on the required loan disclosures.
Why This Is the Correct Answer
Under RESPA Section 8, a mortgage broker may receive compensation from both the borrower and lender, provided that no portion of the lender-paid compensation is conditioned on referring the borrower to specific settlement service providers, and all compensation is properly disclosed on the required loan disclosures.
More Federal Laws Questions
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A creditor originates a 40-year mortgage with a 42% DTI ratio calculated using appendix Q standards. The loan has no risky features and meets all other QM requirements. What is this loan's QM status?