A mortgage team is building a Georgia procedure for advertising and consumer-protection controls. Which statement matches the state requirement?
Correct Answer
B) Georgia high-cost home loan restrictions include no prepayment fees after 24 months, no prepayment fees over 2 percent in the first 12 months or over 1 percent in.
Georgia high-cost home loan restrictions include no prepayment fees after 24 months, no prepayment fees over 2 percent in the first 12 months or over 1 percent in the second 12 months, no balloon payment more than twice the average earlier payment, no negative amortization, no default-rate increase, and no more than 2 periodic payments prepaid from proceeds.
Why This Is the Correct Answer
Georgia high-cost home loan restrictions include no prepayment fees after 24 months, no prepayment fees over 2 percent in the first 12 months or over 1 percent in. This is correct because Georgia high-cost home loan restrictions include no prepayment fees after 24 months, no prepayment fees over 2 percent in the first 12 months or over 1 percent in the second 12 months, no balloon payment more than twice the average earlier payment, no negative amortization, no default-rate increase, and no more than 2 periodic payments prepaid from proceeds.
Why the Other Options Are Wrong
Option A: Georgia high-cost rules apply only to federal HOEPA disclosures and add no state-specific borrower protections.
Georgia high-cost rules apply only to federal HOEPA disclosures and add no state-specific borrower protections. is not correct because it does not match the Georgia rule applied in this scenario.
Option C: A lower monthly payment alone always proves reasonable tangible net benefit for a Georgia refinance.
A lower monthly payment alone always proves reasonable tangible net benefit for a Georgia refinance. is not correct because it does not match the Georgia rule applied in this scenario.
Option D: Georgia Fair Lending Act contractor-payment, counseling, cure, and assignee-liability rules are optional best practices.
Georgia Fair Lending Act contractor-payment, counseling, cure, and assignee-liability rules are optional best practices. is not correct because it does not match the Georgia rule applied in this scenario.
Memory Technique
GA -> advertising and consumer-protection controls
Exam Tip
Identify the Georgia state requirement first, then choose the answer that preserves licensing, disclosure, record, supervision, or enforcement compliance.
Common Mistakes to Avoid
- -Using a generic national rule when the Georgia state requirement controls
- -Treating Georgia licensing, reporting, advertising, records, or enforcement duties as optional
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