An MLO receives an application where the borrower provides their loan amount as '$300,000 approximately - depends on final property value.' No specific loan amount is given. What should the MLO do regarding application completeness?
Correct Answer
C) Request a specific loan amount to complete the application
Under TRID, the loan amount must be specific enough to allow for accurate disclosure preparation. An approximate amount 'depending on final property value' is too vague and doesn't provide sufficient information for the lender to prepare accurate disclosures. A specific loan amount is required for application completeness.
Why This Is the Correct Answer
Under TRID, the loan amount must be specific enough to allow for accurate disclosure preparation. An approximate amount 'depending on final property value' is too vague and doesn't provide sufficient information for the lender to prepare accurate disclosures. A specific loan amount is required for application completeness.
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A borrower has two mortgages on their property: a first mortgage of $200,000 and a second mortgage of $75,000. They want to refinance only the first mortgage to $210,000 for better terms, leaving the second mortgage in place. How is this transaction classified?