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Originationhard27% of exam

During a state-law refresher, a policy analyst identifies an issue involving loan-originator obligations. Which response is most compliant?

Correct Answer

C) Apply fair dealing before recommending a product

MLO obligations include fair dealing, no steering, accurate information, and compliant compensation. The best answer is "Apply fair dealing before recommending a product".

Answer Options
A
Treat borrower familiarity with mortgages as a waiver of required file steps.
B
Continue with incomplete facts because the loan appears likely to close.
C
Apply fair dealing before recommending a product
D
Use the quickest product path instead of the rule that applies to the transaction.

Why This Is the Correct Answer

MLO obligations include fair dealing, no steering, accurate information, and compliant compensation. The best answer is "Apply fair dealing before recommending a product".

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