A record-retention audit raises a question about HOEPA high-cost mortgage rules. Which action should the sponsorship reviewer recommend?
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
Before the loan advances, an audit analyst must resolve a flood-insurance requirements issue in a record-retention audit. What should happen?
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Before the team acts on a servicing handoff check, a policy analyst must address Flood Disaster Protection Act. Which response is most defensible?