An MLO provides a pre-qualification estimate that includes estimated property taxes of $200/month. The borrower finds a home where actual property taxes are $400/month. What is the MLO's obligation regarding the payment estimate?
Correct Answer
B) Provide a revised payment estimate based on the actual property taxes
While pre-qualification is not a commitment, MLOs have a duty to provide accurate information to help borrowers make informed decisions. TRID regulations require good faith estimates, and providing updated payment information when actual property costs are known supports informed consumer choice.
Why This Is the Correct Answer
While pre-qualification is not a commitment, MLOs have a duty to provide accurate information to help borrowers make informed decisions. TRID regulations require good faith estimates, and providing updated payment information when actual property costs are known supports informed consumer choice.
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A self-employed borrower shows increasing income over two years: Year 1 net income was $45,000 and Year 2 was $65,000. A CPA projects Year 3 income at $75,000. The qualifying income should be calculated as:
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An MLO submits a cash-out refinance to LP and receives a message stating 'Cash-Out Amount Exceeds Guidelines.' The loan-to-value ratio is 75% and the borrower has excellent credit. What is the most likely cause of this message?