A processor asks how to handle a file where the borrower pays the broker directly and the creditor also offers compensation. Which response is most accurate?
Correct Answer
C) Decline creditor compensation for that transaction
Lines 100 and 268-269; 12 CFR 1026.36(d)(2)(i). Direct consumer-paid compensation triggers the dual-compensation restriction for that transaction. Therefore, the correct response is "Decline creditor compensation for that transaction".
Why This Is the Correct Answer
Lines 100 and 268-269; 12 CFR 1026.36(d)(2)(i). Direct consumer-paid compensation triggers the dual-compensation restriction for that transaction. Therefore, the correct response is "Decline creditor compensation for that transaction".
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