In a renovation loan scenario, the borrower wants to remove a load-bearing wall to create an open floor plan. The structural engineer's report indicates this is feasible with proper reinforcement. What must happen before this work can proceed?
Correct Answer
B) Updated building permits and lender approval of revised plans are required
Structural modifications, even when approved by engineers, require updated building permits and lender approval of revised construction plans. This ensures compliance with local building codes and that the lender's security interest is protected through proper documentation of the changes.
Why This Is the Correct Answer
Structural modifications, even when approved by engineers, require updated building permits and lender approval of revised construction plans. This ensures compliance with local building codes and that the lender's security interest is protected through proper documentation of the changes.
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A borrower calls to discuss refinancing their current mortgage. During the conversation, the MLO provides specific rate quotes based on the borrower's stated income and property value. What disclosure obligation does this create?
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A mortgage company's policy requires all appraisals to be reviewed by their chief appraiser before being sent to underwriting. During this review, the chief appraiser changes comparable sales selections. This practice is: