An MLO provides pre-qualification based on a borrower's current employment but learns the borrower is starting a new job next month with a $10,000 salary increase. How should this information be handled?
Correct Answer
C) Require a written employment offer and evaluate based on lender guidelines for new employment
Income from new employment requires special consideration under lending guidelines. Most programs allow consideration of income from new employment if there is a written offer and the position is in the same field or represents a logical career progression. The specific lender guidelines will determine the exact requirements for documenting and using this income.
Why This Is the Correct Answer
Income from new employment requires special consideration under lending guidelines. Most programs allow consideration of income from new employment if there is a written offer and the position is in the same field or represents a logical career progression. The specific lender guidelines will determine the exact requirements for documenting and using this income.
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Previous Question
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:
Next Question
A borrower provides a verbal income estimate of $80,000 annually during a pre-qualification call. The MLO later discovers through employment verification that the borrower's actual income is $65,000. What is the most appropriate next step?