Under RESPA, when must a lender provide the Affiliated Business Arrangement (AfBA) disclosure to a borrower?
Correct Answer
B) At or before the time of referral to the affiliated business
Under RESPA Section 8, the AfBA disclosure must be provided at or before the time of referral to ensure the borrower is aware of the business relationship before using the affiliated service.
Why This Is the Correct Answer
Under RESPA Section 8, the AfBA disclosure must be provided at or before the time of referral to ensure the borrower is aware of the business relationship before using the affiliated service.
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A creditor discovers that a loan initially classified as non-HPML actually qualifies as an HPML due to a calculation error discovered 45 days after consummation. What action is required?
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A creditor discovers 45 days after closing that they failed to verify the borrower's employment as required under ATR rules, though the borrower was actually employed as stated. What is the potential liability?