An MLO realizes they made an error in calculating debt-to-income ratio that initially disqualified a borrower, but correcting it would mean additional work with no guarantee of approval. What does good faith require?
Correct Answer
C) Correct the error and re-evaluate the borrower's qualification
Good faith dealing requires MLOs to correct known errors regardless of the additional work involved or uncertain outcomes. Borrowers have the right to accurate evaluation of their qualifications, and MLOs must ensure calculations are correct.
Why This Is the Correct Answer
Good faith dealing requires MLOs to correct known errors regardless of the additional work involved or uncertain outcomes. Borrowers have the right to accurate evaluation of their qualifications, and MLOs must ensure calculations are correct.
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Which of the following scenarios would NOT qualify as a valid changed circumstance requiring a revised Loan Estimate?
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A borrower receives a Loan Estimate showing a $400 appraisal fee. The lender later discovers the property requires a more complex appraisal costing $600. What must the lender do?