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The branch manager compares the file facts with Amortization and Payment Structure during a borrower follow-up call. Which conclusion is accurate?

Correct Answer

A) Use the amortization schedule to separate principal and interest

Fixed-rate mortgages use a constant interest rate and amortizing principal-and-interest schedule unless otherwise structured. The best answer is "Use the amortization schedule to separate principal and interest".

Answer Options
A
Use the amortization schedule to separate principal and interest
B
Apply a different loan-program rule without checking the file facts.
C
Ignore product, occupancy, LTV, or eligibility limits because the borrower prefers the loan.
D
Apply the correct general concept to the wrong consumer complaint stage rather than the Amortization and Payment Structure rule.

Why This Is the Correct Answer

Fixed-rate mortgages use a constant interest rate and amortizing principal-and-interest schedule unless otherwise structured. The best answer is "Use the amortization schedule to separate principal and interest".

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