Which of the following would be subject to the 10% cumulative tolerance category?
Correct Answer
C) Pest inspection fee when borrower shops and selects from lender's list
Third-party services where the borrower is permitted to shop but selects a provider from the lender's written list are subject to 10% cumulative tolerance. This includes services like pest inspections, surveys, and attorney fees when selected from the lender's list.
Why This Is the Correct Answer
Third-party services where the borrower is permitted to shop but selects a provider from the lender's written list are subject to 10% cumulative tolerance. This includes services like pest inspections, surveys, and attorney fees when selected from the lender's list.
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Previous Question
LP returns a finding of 'Caution' with the message 'Review Asset Documentation' for a borrower who provided 2 months of bank statements. The borrower's down payment funds show consistent monthly deposits. What additional documentation might LP be requesting?
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A borrower mentions they've been advised by a financial planner to avoid certain loan features, but those features would generate higher compensation for the MLO. How should the MLO respond under fair dealing principles?