Sec4-P158

A borrower is offered a rate higher than the market par rate and the broker explains the higher rate will generate a credit to help cover closing costs.

What is this credit commonly called?

An originating lender agrees that the purchasing lender will take over servicing rights and pays an additional amount based on a percentage of the loan amount.

What is this payment called?

A borrower applies for an FHA loan and asks why the appraisal fee must be paid upfront and whether it will be refunded if the loan does not close.

Which response is correct?

Two unmarried borrowers apply together for a mortgage and ask if one joint credit report can be used.

What is the correct explanation?

A property is under construction or has appraisal-required repairs that must be verified prior to closing.

When is a lender’s inspection fee typically charged?

A borrower asks which loan programs may include an up-front fee.

Which answer is correct?