An MLO learns that a competing lender has offered their borrower significantly better terms two days before closing. The MLO's obligation under fair dealing principles is to:
Correct Answer
B) Advise the borrower of their right to compare offers and make an informed decision
Fair dealing requires MLOs to act in the borrower's best interest, which includes ensuring they can make informed decisions. Borrowers have the right to compare offers throughout the process, and MLOs should not interfere with this right.
Why This Is the Correct Answer
Fair dealing requires MLOs to act in the borrower's best interest, which includes ensuring they can make informed decisions. Borrowers have the right to compare offers throughout the process, and MLOs should not interfere with this right.
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?
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