According to anti-steering provisions, when must the three loan option categories be presented to the borrower?
Correct Answer
C) Before the borrower selects or expresses interest in a particular loan
The anti-steering rule requires that loan originators present the three categories of loan options before the consumer selects or expresses interest in a particular loan product. This ensures the consumer has the opportunity to consider all required options before making a decision.
Why This Is the Correct Answer
The anti-steering rule requires that loan originators present the three categories of loan options before the consumer selects or expresses interest in a particular loan product. This ensures the consumer has the opportunity to consider all required options before making a decision.
More Origination Questions
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An MLO receives compensation of $2,000 per loan plus an additional $300 if the borrower chooses to lock their rate for 60 days instead of 30 days. This compensation structure:
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An MLO's employment contract includes a provision that their commission rate will decrease by 0.1% for every loan that is rejected by underwriting in a given month. This compensation structure: