An MLO submits a loan application to both DU and LP and receives different recommendations. The DU recommendation is 'Approve/Eligible' while LP gives 'Accept.' What should the MLO do?
Correct Answer
C) Follow the lender's policy on which AUS recommendation to use
When different AUS systems provide different recommendations, the MLO must follow their lender's established policy regarding which recommendation to use, as lenders have specific guidelines for handling multiple AUS results.
Why This Is the Correct Answer
When different AUS systems provide different recommendations, the MLO must follow their lender's established policy regarding which recommendation to use, as lenders have specific guidelines for handling multiple AUS results.
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Previous Question
A borrower receives Loan Estimates from three lenders on the same day. Lender A shows $2,800 in origination charges, Lender B shows $1,200, and Lender C shows $3,400. All other terms are similar. What should the MLO advise regarding the comparison?
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On day 8 after providing the initial Loan Estimate, a lender discovers the property requires a specialized environmental assessment costing $1,500 that wasn't initially known. When must the revised Loan Estimate be provided?