A California real estate broker arranges a loan for a borrower and receives compensation from both the borrower and the lender. Under California law, what disclosure is required?
Correct Answer
C) The broker must disclose all compensation received from all parties in the Mortgage Loan Disclosure Statement
Under California Business & Professions Code §10240 and §10241, a real estate broker arranging a loan must disclose all compensation received from all parties on the Mortgage Loan Disclosure Statement (Borrower's Statement). Full transparency is required.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
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