An MLO's company has a policy requiring use of a specific credit reporting agency that provides volume discounts. A borrower asks to use a different credit agency. How should the MLO respond?
Correct Answer
A) Explain that company policy requires use of the designated agency
MLOs must follow their company's established policies regarding service providers. Using a company-designated credit agency for volume discounts is a legitimate business practice that can benefit borrowers through cost savings, and the MLO should explain this policy transparently.
Why This Is the Correct Answer
MLOs must follow their company's established policies regarding service providers. Using a company-designated credit agency for volume discounts is a legitimate business practice that can benefit borrowers through cost savings, and the MLO should explain this policy transparently.
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A lender's website features a mortgage calculator that consistently understates monthly payments by excluding certain fees that are always required. When borrowers apply, they receive accurate Loan Estimates with all fees properly disclosed. The lender argues the calculator is just a 'preliminary tool.' This practice is most likely: