An MLO discovers that a borrower's credit report contains an error that significantly impacts the loan decision. The MLO should:
Correct Answer
C) Advise the borrower of their right to dispute the information
Under FCRA, consumers have the right to dispute inaccurate information. MLOs cannot correct credit report errors directly but should inform borrowers of their dispute rights under FCRA Section 611.
Why This Is the Correct Answer
Under FCRA, consumers have the right to dispute inaccurate information. MLOs cannot correct credit report errors directly but should inform borrowers of their dispute rights under FCRA Section 611.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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