During intake, a borrower asks which upfront charge can be collected before intent to proceed. What is the best compliant response?
Correct Answer
C) Charge only a bona fide credit report fee before intent
Lines 186-203; 12 CFR 1026.19(e)(2)(i). The narrow fee exception is for a bona fide and reasonable credit report fee before Loan Estimate receipt and intent to proceed. Therefore, the correct response is "Charge only a bona fide credit report fee before intent".
Why This Is the Correct Answer
Lines 186-203; 12 CFR 1026.19(e)(2)(i). The narrow fee exception is for a bona fide and reasonable credit report fee before Loan Estimate receipt and intent to proceed. Therefore, the correct response is "Charge only a bona fide credit report fee before intent".
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?
A compliance review finds that the consumer locks the interest rate after the initial disclosure package. What should the MLO do next?
A borrower-facing employee is unsure what to do when a processor wants to omit known monthly obligations from underwriting. What is the correct response?
An MLO is reviewing procedures for a case where a HELOC will provide funds for the down payment on the same dwelling. What is the proper handling?
A quality-control reviewer flags a case because a HELOC will provide funds for the down payment on the same dwelling. What correction is appropriate?
During intake, a manager proposes higher pay for loans with a higher interest rate. What is the best compliant response?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam