A Washington settlement statement in 2026 shows discount points payable to the broker rather than the lender. Does describing a payment to the broker rather than the actual lender as discount points comply with the rule?
Correct Answer
A) A misrepresentation: points run to the actual lender on the loan
The rule gives as an example of discount point misrepresentation a broker or lender charging discount points on the good faith estimate, loan estimate or settlement statement payable to the broker or any party that is not the actual lender on the loan. Other choices: negotiating the rate is not receiving the points; remitting them later does not fix the disclosure; and no borrower inquiry is needed. Source: WAC 208-660-500(3)(e)(i)
Why This Is the Correct Answer
The rule gives as an example of discount point misrepresentation a broker or lender charging discount points on the good faith estimate, loan estimate or settlement statement payable to the broker or any party that is not the actual lender on the loan. Other choices: negotiating the rate is not receiving the points; remitting them later does not fix the disclosure; and no borrower inquiry is needed. Source: WAC 208-660-500(3)(e)(i)
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