An MLO's spouse owns a title company. When can the MLO refer borrowers to this company?
Correct Answer
B) Only with proper disclosure of the relationship
RESPA allows affiliated business arrangements with proper disclosure. The MLO must provide the required Affiliated Business Arrangement Disclosure Statement to inform borrowers of the relationship.
Why This Is the Correct Answer
RESPA allows affiliated business arrangements with proper disclosure. The MLO must provide the required Affiliated Business Arrangement Disclosure Statement to inform borrowers of the relationship.
More Origination Questions
A borrower has a construction-to-permanent loan with a 12-month construction phase. At month 10, construction is only 60% complete due to delays. What is the most likely outcome?
For a construction-to-permanent loan, when must the initial Closing Disclosure be provided for the construction phase?
During a refinance transaction, the appraiser determines that significant unpermitted additions were made to the property. The appraiser wants to discuss this with the MLO before finalizing the report. What should the MLO do?
An appraiser discovers that a property has significant foundation issues that were not disclosed. The appraiser reduces the property value by $25,000 and includes detailed comments about the structural problems. The loan officer is upset because this will kill the deal. Under AIR, the loan officer:
An MLO's compensation structure includes higher payments for certain loan products. When is it acceptable to recommend these higher-compensated products?
People Also Study
Federal Mortgage-Related Laws
23% of exam
General Mortgage Knowledge
23% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Uniform State Test Content
12% of exam
Previous Question
An MLO receives a 'Caution' message from an automated underwriting system along with an approval recommendation. What does this indicate?
Next Question
An MLO works for a credit union that is exempt from many Dodd-Frank compensation restrictions. The credit union pays the MLO a commission that varies based on whether the loan has an interest rate above or below the credit union's standard rate. This practice is: