A borrower-facing employee is unsure what to do when a HELOC will provide funds for the down payment on the same dwelling. What is the correct response?
Correct Answer
C) Include the HELOC payment in the ATR analysis
Lines 207-214; 12 CFR 1026.43(c)(2)(iv) and 1026.43(c)(6). A known simultaneous HELOC affects monthly obligations and must be considered for repayment ability. Therefore, the correct response is "Include the HELOC payment in the ATR analysis".
Why This Is the Correct Answer
Lines 207-214; 12 CFR 1026.43(c)(2)(iv) and 1026.43(c)(6). A known simultaneous HELOC affects monthly obligations and must be considered for repayment ability. Therefore, the correct response is "Include the HELOC payment in the ATR analysis".
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 borrower-facing employee is unsure what to do when the borrower has provided enough information to trigger a TRID application. What is the correct response?
Next Question
Devon notices a compliance issue tied to income analysis and Self-Employment Income Analysis. What is the best next step?