A borrower-facing employee is unsure what to do when an MLO refers a borrower to an affiliated title agency. What is the correct response?
Correct Answer
C) Give the AFBA disclosure and avoid required use
Lines 250-254; 12 CFR 1024.15(b). The affiliate relationship must be disclosed, the borrower cannot be required to use the affiliate, and referral compensation cannot be disguised. Therefore, the correct response is "Give the AFBA disclosure and avoid required use".
Why This Is the Correct Answer
Lines 250-254; 12 CFR 1024.15(b). The affiliate relationship must be disclosed, the borrower cannot be required to use the affiliate, and referral compensation cannot be disguised. Therefore, the correct response is "Give the AFBA disclosure and avoid required use".
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