EstatePass
Originationmedium27% of exam

In a mortgage origination file, a borrower asks which upfront charge can be collected before intent to proceed. Which action should be taken?

Correct Answer

B) 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".

Answer Options
A
Cure a tolerance problem by renaming the fee instead of documenting or refunding the variance.
B
Charge only a bona fide credit report fee before intent
C
Treat the Permitted fees before intent to proceed review as complete because the file contains a related quality-control note.
D
Increase a zero-tolerance charge because the borrower accepted the cost verbally.

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".

Was this explanation helpful?

More Origination Questions

A disclosure specialist is resolving Income Calculation Methods during an internal audit sample. Which action best fits the rule?

In a closing-readiness check, a quality-control reviewer sees facts tied to Self Employed Income Calculation. What should the file reflect?

During a disclosure desk review, a policy analyst encounters an Income Calculation Self Employed issue. Which response should decide how the file should be documented?

During a training quiz scenario, the loan team encounters an Income Calculation issue. Which response should resolve the issue before the file moves forward?

A team member asks about Dodd Frank MLO Compensation in an investor-delivery review while trying to apply the requirement without relying on borrower preference. Which response should the loan team use?

A team member asks about Construction Loan Terms in a compliance desk review while trying to select the answer that fits the governing requirement. Which response should a disclosure specialist use?

During an advertising approval, a loan file reviewer identifies an issue involving sponsorship and employment status. Which response is most compliant?

A team member asks about Construction Loan Requirements in an investor-delivery review while trying to resolve the issue before the file moves forward. Which response should a licensing coordinator use?

During a disclosure desk review, a training manager encounters a Pre qualification vs Pre approval issue. Which response should decide how the file should be documented?

In a pricing desk question, the loan team sees facts tied to TRID Closing Disclosure Changes. What should the file reflect?

People Also Study

Related Study Resources

Practice More MLO Questions

Access all practice questions with progress tracking and adaptive difficulty to pass your SAFE MLO exam.

Start Practicing