An MLO presents three loans to a borrower: a 30-year conventional at 4.0%, a 15-year conventional at 3.5%, and a 30-year FHA at 4.25%. All loans are in the lowest cost category within their respective loan types. Which statement about compliance is correct?
Correct Answer
B) This complies with anti-steering requirements for presenting multiple loan options
The anti-steering provisions require presenting the loan with the lowest interest rate, the loan with the lowest points and fees, and the loan with the lowest rate without negative amortization or prepayment penalty within each category. Different loan terms (15-year vs 30-year) constitute different loan categories, making this presentation compliant.
Why This Is the Correct Answer
The anti-steering provisions require presenting the loan with the lowest interest rate, the loan with the lowest points and fees, and the loan with the lowest rate without negative amortization or prepayment penalty within each category. Different loan terms (15-year vs 30-year) constitute different loan categories, making this presentation compliant.
More Origination Questions
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For a construction-to-permanent loan, when must the initial Closing Disclosure be provided for the construction phase?
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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?
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How long is a typical pre-approval letter valid?
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