Rules for Truth in Lending and RESPA call for disclosure documents to borrowers. How can a managing broker best prepare associated licensees to manage these disclosures?
A.
The buyer's broker can provide samples so that when the licensee and the borrower prepare the forms they are following a good example.
B.
Because the lender has primary responsibility to provide these forms, the broker and licensees should be aware of the items required for the lender to comply.
C.
The managing broker should train licensees to advise borrowers to accept the Loan Estimate right away.
D.
Because the listing broker will be primarily responsible for completing the Loan Estimate to send to the lender, the broker should train associated licensees to collect all the necessary information in a timely fashion.
Under TILA-RESPA Integrated Disclosure (TRID) rules, the lender is primarily responsible for preparing and delivering the Loan Estimate and Closing Disclosure.
Brokers and licensees do not prepare these forms.
However, licensees must be knowledgeable about the disclosures so they can help clients understand the process and provide necessary information for lender compliance.
Thus, the best practice is B: brokers should ensure licensees are aware of what the lender requires.
[Reference: Truth in Lending Act (Regulation Z); RESPA (Regulation X); NJ Real Estate Salesperson Study Guide, Chapter on Federal Lending Laws., ]
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