A borrower scenario raises a question about rate-lock agreements. Which answer should Emery rely on?
Correct Answer
A) Use a corrected Closing Disclosure if the lock occurs after the CD
Rate locks can require revised Loan Estimates and accurate interest-rate-dependent disclosures. The best answer is "Use a corrected Closing Disclosure if the lock occurs after the CD".
Why This Is the Correct Answer
Rate locks can require revised Loan Estimates and accurate interest-rate-dependent disclosures. The best answer is "Use a corrected Closing Disclosure if the lock occurs after the CD".
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?
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