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During a borrower intake review, an operations lead encounters a Transaction Types issue. Which response should resolve the issue before the file moves forward?

Correct Answer

D) Classify the transaction type before applying the rule

Purchase, refinance, cash-out, construction, and home-equity transactions have different disclosure and risk rules. The best answer is "Classify the transaction type before applying the rule".

Answer Options
A
Apply a different loan-program rule without checking the file facts.
B
Treat the Transaction Types review as complete because the file contains a related refinance benefit note.
C
Use the same treatment for all mortgage products without comparing program requirements.
D
Classify the transaction type before applying the rule

Why This Is the Correct Answer

Purchase, refinance, cash-out, construction, and home-equity transactions have different disclosure and risk rules. The best answer is "Classify the transaction type before applying the rule".

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