What is a mortgage loan originator allowed to do?

A mortgage loan originator plays a crucial role in the home lending process, primarily focusing on helping borrowers secure loans that suit their financial needs. Evaluating a refinance for borrower benefits is an essential task within this role. This includes assessing the current loan terms, interest rates, and potential savings a borrower can achieve through refinancing.

Refinancing can help borrowers reduce their monthly payments, switch from an adjustable-rate mortgage to a fixed-rate mortgage, or access cash from their home equity. The mortgage loan originator conducts a thorough analysis to determine if refinancing would be advantageous for the borrower, ensuring that the borrower understands the benefits and costs involved in the process. By doing so, the originator acts in the best interest of the borrower and helps them make informed financial decisions.

The other choices reflect actions or practices that are either unethical or outside the scope of what a mortgage loan originator should do, further emphasizing the importance of acting in the best interest of the borrower and maintaining ethical standards in the industry.