An MLO is working with a borrower who has a power of attorney document allowing their adult child to act on their behalf. When providing required disclosures, to whom should the MLO deliver the documents?
Correct Answer
B) Only to the person with power of attorney, as they are the legal representative
When a valid power of attorney exists for mortgage transactions, the person holding the power of attorney becomes the legal representative for disclosure purposes. Under TRID and other disclosure requirements, documents should be delivered to the legal representative who has the authority to act on the borrower's behalf. The MLO must verify the power of attorney is valid and covers mortgage transactions.
Why This Is the Correct Answer
When a valid power of attorney exists for mortgage transactions, the person holding the power of attorney becomes the legal representative for disclosure purposes. Under TRID and other disclosure requirements, documents should be delivered to the legal representative who has the authority to act on the borrower's behalf. The MLO must verify the power of attorney is valid and covers mortgage transactions.
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A borrower calls an MLO asking about current interest rates for a 30-year fixed mortgage. The MLO quotes a rate but the borrower doesn't provide any financial information. What disclosure requirement applies to this communication?
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