A North Carolina broker presents an adjustable rate option to a borrower in 2026. What information about future changes and payment effects must it explain?
Correct Answer
D) Explain when terms change and the impact on required monthly payments
Material borrower information includes, where the loan contains a variable rate feature or other terms that may result in a change to the monthly payments, the circumstances upon which the terms or payments will change and the impact of the changes upon the required monthly payments. Other choices: the impact on the payment is what the definition names; and no timing or request condition appears. Source: 04 NCAC 03M .0101(5)(d)
Why This Is the Correct Answer
Material borrower information includes, where the loan contains a variable rate feature or other terms that may result in a change to the monthly payments, the circumstances upon which the terms or payments will change and the impact of the changes upon the required monthly payments. Other choices: the impact on the payment is what the definition names; and no timing or request condition appears. Source: 04 NCAC 03M .0101(5)(d)
More UST Questions
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