A borrower scenario raises a question about third-party settlement-service controls. Which answer should Oakley rely on?
Correct Answer
A) Pay third parties only for services actually performed
Third-party settlement services must avoid referral fees and follow provider-list/tolerance rules. The best answer is "Pay third parties only for services actually performed".
Why This Is the Correct Answer
Third-party settlement services must avoid referral fees and follow provider-list/tolerance rules. The best answer is "Pay third parties only for services actually performed".
More Origination Questions
A branch manager asks about a loan file because a processor wants to omit known monthly obligations from underwriting. What should happen?
In a mortgage origination file, the person preparing the valuation would be paid more if the value is higher. Which action should be taken?
An MLO is reviewing procedures for a case where the person preparing the valuation would be paid more if the value is higher. What is the proper handling?
A quality-control reviewer flags a case because the person preparing the valuation would be paid more if the value is higher. What correction is appropriate?
Before closing, the team discovers that a processor wants to omit known monthly obligations from underwriting. What is the safest compliant answer?
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