An audit analyst is reviewing a mortgage file during a supervisory file review. Which statement correctly handles Construction Loan Administration?
Correct Answer
C) Consider both construction and permanent payment obligations
Construction and construction-to-permanent loans require correct phase treatment, disclosures, and repayment analysis. The best answer is "Consider both construction and permanent payment obligations".
Why This Is the Correct Answer
Construction and construction-to-permanent loans require correct phase treatment, disclosures, and repayment analysis. The best answer is "Consider both construction and permanent payment obligations".
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?
In a mortgage origination file, the person preparing the valuation would be paid more if the value is higher. Which action should be taken?
An MLO is reviewing procedures for a case where the person preparing the valuation would be paid more if the value is higher. What is the proper handling?
A quality-control reviewer flags a case because the person preparing the valuation would be paid more if the value is higher. What correction is appropriate?
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