An MLO receives a 'Caution' message from an automated underwriting system along with an approval recommendation. What does this indicate?
Correct Answer
B) There are risk factors present that require careful attention and possibly additional documentation
A 'Caution' message indicates that while the loan may be approvable, there are specific risk factors that require careful attention, additional documentation, or enhanced review to ensure the loan meets guidelines.
Why This Is the Correct Answer
A 'Caution' message indicates that while the loan may be approvable, there are specific risk factors that require careful attention, additional documentation, or enhanced review to ensure the loan meets guidelines.
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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