An MLO presents three conventional loan options with different rate/point combinations, but fails to present any government loan options despite the borrower qualifying for FHA financing. The MLO's defense that 'the borrower seemed sophisticated and preferred conventional loans' would be:
Correct Answer
B) Insufficient to justify the steering violation
There is no 'sophisticated borrower exception' to anti-steering rules. Regardless of the borrower's apparent sophistication or preferences, MLOs must present loan options from each category for which the borrower qualifies. Borrower waivers cannot override regulatory requirements.
Why This Is the Correct Answer
There is no 'sophisticated borrower exception' to anti-steering rules. Regardless of the borrower's apparent sophistication or preferences, MLOs must present loan options from each category for which the borrower qualifies. Borrower waivers cannot override regulatory requirements.
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