A mortgage team asks a sponsorship reviewer about sponsorship and employment status during a training scenario. Which answer should guide the file?
Correct Answer
D) Use third-party records for ATR support
origination files need reliable documentation of income, assets, employment, debts, and changed facts. This item uses an exam-style scenario; any file details in the stem are illustrative and the governing rule controls the compliant response. The best answer is "Use third-party records for ATR support".
Why This Is the Correct Answer
origination files need reliable documentation of income, assets, employment, debts, and changed facts. This item uses an exam-style scenario; any file details in the stem are illustrative and the governing rule controls the compliant response. The best answer is "Use third-party records for ATR support".
More Origination Questions
In a mortgage origination file, a processor wants to omit known monthly obligations from underwriting. Which action should be taken?
A compliance review finds that the person preparing the valuation would be paid more if the value is higher. What should the MLO do next?
During intake, the consumer locks the interest rate after the initial disclosure package. What is the best compliant response?
An MLO is reviewing procedures for a case where a processor wants to omit known monthly obligations from underwriting. What is the proper handling?
In a mortgage origination file, a HELOC will provide funds for the down payment on the same dwelling. Which action should be taken?
A borrower-facing employee is unsure what to do when a manager proposes higher pay for loans with a higher interest rate. What is the correct response?
In a mortgage origination file, a manager proposes higher pay for loans with a higher interest rate. Which action should be taken?
A branch manager asks about a loan file because a loan officer wants the appraiser to raise the value to make the deal work. What should happen?
Before closing, the team discovers that a loan officer wants the appraiser to raise the value to make the deal work. What is the safest compliant answer?
A borrower-facing employee is unsure what to do when a loan officer wants the appraiser to raise the value to make the deal work. What is the correct response?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
A loan team is about to close a file involving third party and RESPA — Affiliated Business Arrangements. Which action should occur first?
Next Question
Avery is reviewing a mortgage file involving changed circumstances and TILA — TRID Loan Estimates. Which response best follows the governing rule?