An MLO's family member applies for a loan through the MLO's company but with a different originator. The MLO has access to the file and notices an error that could help their family member qualify. What should the MLO do?
Correct Answer
C) Inform the assigned MLO about the error through proper channels
Good faith requires proper procedures and avoiding conflicts of interest. The MLO should work through appropriate channels to ensure the error is addressed while maintaining professional boundaries and avoiding improper influence on the loan decision.
Why This Is the Correct Answer
Good faith requires proper procedures and avoiding conflicts of interest. The MLO should work through appropriate channels to ensure the error is addressed while maintaining professional boundaries and avoiding improper influence on the loan decision.
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Previous Question
A lender discovers that the borrower failed to disclose $25,000 in credit card debt during the application process. This discovery occurs 10 days after the initial Loan Estimate was provided. What is the maximum timeframe for providing a revised Loan Estimate?
Next Question
A loan officer receives an appraisal that values the property at $280,000, but the borrower needs $300,000 to qualify for the loan. The loan officer contacts the appraiser asking for a 'second look' at the comparables. This action is: