Two Washington borrowers with the same program and profile are quoted different rate cuts for 1 point on the same day. Does the rule permit inconsistent point-to-rate reductions for borrowers with the same program, characteristics and disclosure date?
Correct Answer
C) Prohibited: the reduction is mathematically determinable and the same
It is a listed misrepresentation to charge discount points that are not mathematically determinable as the same direct reduction of the rate available to any two borrowers with the same program and underwriting characteristics on the same date of disclosure. Other choices: individual negotiation is what the sentence removes for identical borrowers; agreement is not the test; and no complaint is needed. Source: WAC 208-660-500(3)(e)(iii)
Why This Is the Correct Answer
It is a listed misrepresentation to charge discount points that are not mathematically determinable as the same direct reduction of the rate available to any two borrowers with the same program and underwriting characteristics on the same date of disclosure. Other choices: individual negotiation is what the sentence removes for identical borrowers; agreement is not the test; and no complaint is needed. Source: WAC 208-660-500(3)(e)(iii)
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