A rate lock agreement must include all of the following information EXCEPT:
Correct Answer
C) The borrower's credit score at time of lock
Rate lock agreements must specify the locked rate, expiration date, and any associated fees. While the borrower's credit score affects loan qualification, it's not required to be included in the rate lock documentation itself.
Why This Is the Correct Answer
Rate lock agreements must specify the locked rate, expiration date, and any associated fees. While the borrower's credit score affects loan qualification, it's not required to be included in the rate lock documentation itself.
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 settlement agent discovers a math error in the final HUD-1 Settlement Statement 30 minutes before closing that would result in the borrower owing an additional $500. What is the most appropriate action?
Next Question
What information is typically NOT required as input for an automated underwriting system evaluation?