Which of the following scenarios would exempt a loan originator from the three-category presentation requirement under anti-steering provisions?
Correct Answer
C) The creditor offers only one loan product type
If a creditor offers only one type of loan product, the loan originator cannot be required to present options that don't exist. The anti-steering rule applies only to the extent that different loan types are available from the creditor and the consumer qualifies for them.
Why This Is the Correct Answer
If a creditor offers only one type of loan product, the loan originator cannot be required to present options that don't exist. The anti-steering rule applies only to the extent that different loan types are available from the creditor and the consumer qualifies for them.
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A borrower wants to compare an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. What is the MOST important disclosure the MLO must provide about the ARM?
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