During an NMLS filing review, a loan file reviewer identifies an issue involving advertising and consumer-protection controls. Which response is most compliant?
Correct Answer
D) Stop the transaction if it lacks a borrower benefit
predatory-lending concerns include unaffordable loans, equity stripping, flipping, and abusive high-cost features. This item uses an exam-style scenario; any file details in the stem are illustrative and the governing rule controls the compliant response. The best answer is "Stop the transaction if it lacks a borrower benefit".
Why This Is the Correct Answer
predatory-lending concerns include unaffordable loans, equity stripping, flipping, and abusive high-cost features. This item uses an exam-style scenario; any file details in the stem are illustrative and the governing rule controls the compliant response. The best answer is "Stop the transaction if it lacks a borrower benefit".
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A processor asks how to handle a file where an MLO refers a borrower to an affiliated title agency. Which response is most accurate?
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