When communicating with a borrower who has limited English proficiency, what is the MLO's primary obligation regarding disclosures?
Correct Answer
C) Ensure the borrower understands the disclosures, potentially using interpretation services
While federal law doesn't mandate foreign language disclosures for most transactions, MLOs have an ethical and practical obligation to ensure borrowers understand material loan terms. This may require interpretation services or translated materials to ensure meaningful disclosure under general consumer protection principles.
Why This Is the Correct Answer
While federal law doesn't mandate foreign language disclosures for most transactions, MLOs have an ethical and practical obligation to ensure borrowers understand material loan terms. This may require interpretation services or translated materials to ensure meaningful disclosure under general consumer protection principles.
More Origination Questions
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For a construction-to-permanent loan, when must the initial Closing Disclosure be provided for the construction phase?
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