A mortgage file is paused during a secondary-market screen because of HOEPA High Cost Mortgages. Which answer should choose the compliant next step?
Correct Answer
B) Apply high-cost mortgage restrictions before consummation
HOEPA/high-cost mortgage rules use rate, points-and-fees, and prepayment-penalty triggers and restrict risky terms. The best answer is "Apply high-cost mortgage restrictions before consummation".
Why This Is the Correct Answer
HOEPA/high-cost mortgage rules use rate, points-and-fees, and prepayment-penalty triggers and restrict risky terms. The best answer is "Apply high-cost mortgage restrictions before consummation".
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Previous Question
During a post-application update, a disclosure specialist encounters a HOEPA High Cost Mortgage Restrictions issue. Which response should confirm the rule-based response?
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A processor asks how to handle a file where a borrower asks to cancel PMI at the scheduled 80 percent point. Which response is most accurate?