An MLO is reviewing procedures for a case where an MLO refers a borrower to an affiliated title agency. What is the proper handling?
Correct Answer
A) Give the AFBA disclosure and avoid required use
Lines 250-254; 12 CFR 1024.15(b). The affiliate relationship must be disclosed, the borrower cannot be required to use the affiliate, and referral compensation cannot be disguised. Therefore, the correct response is "Give the AFBA disclosure and avoid required use".
Why This Is the Correct Answer
Lines 250-254; 12 CFR 1024.15(b). The affiliate relationship must be disclosed, the borrower cannot be required to use the affiliate, and referral compensation cannot be disguised. Therefore, the correct response is "Give the AFBA disclosure and avoid required use".
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