When is an MLO required to provide the Special Information Booklet to a borrower?
Correct Answer
A) At application or within 3 business days of application
Under RESPA Section 5 (12 CFR 1024.6), lenders must provide the Special Information Booklet at application or mail it within 3 business days of receiving the application for most residential mortgage loans.
Why This Is the Correct Answer
Under RESPA Section 5 (12 CFR 1024.6), lenders must provide the Special Information Booklet at application or mail it within 3 business days of receiving the application for most residential mortgage loans.
More Origination Questions
A borrower has a construction-to-permanent loan with a 12-month construction phase. At month 10, construction is only 60% complete due to delays. What is the most likely outcome?
For a construction-to-permanent loan, when must the initial Closing Disclosure be provided for the construction phase?
During a refinance transaction, the appraiser determines that significant unpermitted additions were made to the property. The appraiser wants to discuss this with the MLO before finalizing the report. What should the MLO do?
An appraiser discovers that a property has significant foundation issues that were not disclosed. The appraiser reduces the property value by $25,000 and includes detailed comments about the structural problems. The loan officer is upset because this will kill the deal. Under AIR, the loan officer:
An MLO's compensation structure includes higher payments for certain loan products. When is it acceptable to recommend these higher-compensated products?
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A rate lock agreement expires on Friday, but the lender's offices are closed due to a federal holiday. The borrower's attorney calls Monday morning requesting the closing documents. What is the standard industry practice?
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