Question

What should the Mortgage Loan Officer (MLO) do when the elderly client notifies them of moving to a retirement community just before closing while the HECM loan is in Underwriting?

A) Proceed with the HECM application as planned.
B) Inform the underwriter immediately and request guidance.
C) Advise the client to cancel the application.
D) Complete the application and submit it without any changes.

Answer 1

The Mortgage Loan Officer (MLO) should inform the underwriter immediately and request guidance on how to proceed with the HECM application.

Step-by-step explanation:

In this situation, the Mortgage Loan Officer (MLO) should inform the underwriter immediately and request guidance. Moving to a retirement community just before closing can have an impact on the loan terms and eligibility. The underwriter would be able to assess the situation and provide guidance on how to proceed with the HECM application.