Which of the following business relationships must be disclosed to borrowers under RESPA?
Correct Answer
B) An MLO's 5% ownership in a settlement service provider
RESPA Section 8 requires disclosure of any ownership interest in settlement service providers, regardless of the percentage. Ownership interests create potential conflicts of interest that must be disclosed to borrowers in writing.
Why This Is the Correct Answer
RESPA Section 8 requires disclosure of any ownership interest in settlement service providers, regardless of the percentage. Ownership interests create potential conflicts of interest that must be disclosed to borrowers in writing.
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An appraisal comes back significantly higher than the contract price with no reasonable explanation. The loan officer should:
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A borrower claims rental income from a property but cannot provide a copy of the deed or property tax records showing ownership. When asked about this, they state the property is in a trust. What should the MLO request?