Casey notices a compliance issue tied to rate-lock agreements. What is the best next step?
Correct Answer
D) Provide the revised Loan Estimate within three business days of lock
Rate locks can require revised Loan Estimates and accurate interest-rate-dependent disclosures. The best answer is "Provide the revised Loan Estimate within three business days of lock".
Why This Is the Correct Answer
Rate locks can require revised Loan Estimates and accurate interest-rate-dependent disclosures. The best answer is "Provide the revised Loan Estimate within three business days of lock".
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?
Before closing, the team discovers that a processor wants to omit known monthly obligations from underwriting. What is the safest compliant answer?
A compliance review finds that the consumer locks the interest rate after the initial disclosure package. What should the MLO do next?
A borrower-facing employee is unsure what to do when a processor wants to omit known monthly obligations from underwriting. What is the correct response?
An MLO is reviewing procedures for a case where a HELOC will provide funds for the down payment on the same dwelling. What is the proper handling?
A quality-control reviewer flags a case because a HELOC will provide funds for the down payment on the same dwelling. What correction is appropriate?
During intake, a manager proposes higher pay for loans with a higher interest rate. What is the best compliant response?
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An MLO is reviewing procedures for a case where the borrower pays the broker directly and the creditor also offers compensation. What is the proper handling?
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