A company policy memo needs an Illinois rule for branch, office, and remote-work controls. Which statement should be included?
Correct Answer
C) In Illinois, a mortgage broker creates an agency relationship with the borrower and must act in the borrowers best interest and good faith, avoid undisclosed compensation, follow lawful.
In Illinois, a mortgage broker creates an agency relationship with the borrower and must act in the borrowers best interest and good faith, avoid undisclosed compensation, follow lawful borrower instructions, disclose material facts known to the broker, use reasonable care, and account for borrower money and property.
Why This Is the Correct Answer
In Illinois, a mortgage broker creates an agency relationship with the borrower and must act in the borrowers best interest and good faith, avoid undisclosed compensation, follow lawful. This is correct because In Illinois, a mortgage broker creates an agency relationship with the borrower and must act in the borrowers best interest and good faith, avoid undisclosed compensation, follow lawful borrower instructions, disclose material facts known to the broker, use reasonable care, and account for borrower money and property.
Why the Other Options Are Wrong
Option A: Illinois permits mortgage advertising to imply rates are approved or set by the State if the rate is available.
Illinois permits mortgage advertising to imply rates are approved or set by the State if the rate is available. is not correct because it does not match the Illinois rule applied in this scenario.
Option B: Illinois appraisal copies may be withheld until after closing as long as the borrower can request them later.
Illinois appraisal copies may be withheld until after closing as long as the borrower can request them later. is not correct because it does not match the Illinois rule applied in this scenario.
Option D: Illinois mortgage brokers owe no borrower agency duties once a federal Loan Estimate has been delivered.
Illinois mortgage brokers owe no borrower agency duties once a federal Loan Estimate has been delivered. is not correct because it does not match the Illinois rule applied in this scenario.
Memory Technique
IL -> advertising and consumer-protection controls
Exam Tip
Identify the Illinois 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 Illinois state requirement controls
- -Treating Illinois licensing, reporting, advertising, records, or enforcement duties as optional
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