An MLO presents a borrower with a conventional loan at 4.0% with 1 point, a conventional loan at 4.25% with 0 points, and a VA loan at 4.1% with 0.5 points. The borrower asks why no FHA options were presented. The MLO should:
Correct Answer
C) Immediately present FHA loan options since the borrower qualifies
If a borrower qualifies for loans in multiple categories (conventional, government), the MLO must present options from each category. The borrower's inquiry about FHA loans indicates they qualify for government loans, requiring the MLO to present FHA options alongside the conventional and VA loans already presented.
Why This Is the Correct Answer
If a borrower qualifies for loans in multiple categories (conventional, government), the MLO must present options from each category. The borrower's inquiry about FHA loans indicates they qualify for government loans, requiring the MLO to present FHA options alongside the conventional and VA loans already presented.
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
For a construction-to-permanent loan, the permanent financing phase interest rate is typically determined by:
Next Question
A borrower requests a copy of their appraisal report 5 days after loan closing. The lender had provided an appraisal summary during the loan process but not the full report. What is the lender's obligation?