An operations lead is training staff on MLO compensation restrictions using an MLO sponsorship update. Which statement is accurate?
Correct Answer
D) Decline dual compensation when the consumer pays directly
Loan originator compensation cannot be based on transaction terms or proxies and dual compensation is restricted. The best answer is "Decline dual compensation when the consumer pays directly".
Why This Is the Correct Answer
Loan originator compensation cannot be based on transaction terms or proxies and dual compensation is restricted. The best answer is "Decline dual compensation when the consumer pays directly".
More Origination Questions
A branch manager asks about a loan file because a processor wants to omit known monthly obligations from underwriting. What should happen?
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During quality control, Noel finds a file issue involving PMI options and mortgage-insurance costs. Which action is most appropriate?
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Before closing, the team discovers that the person preparing the valuation would be paid more if the value is higher. What is the safest compliant answer?