Loan Officer Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success!

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Question: 1 / 415

On the Loan Estimate, how should broker fees paid directly by the borrower be presented?

Averaged with other origination fees

Itemized separately from other origination fees

Broker fees paid directly by the borrower must be itemized separately from other origination fees on the Loan Estimate. This requirement aligns with the purpose of the Loan Estimate, which is to provide borrowers with clear and transparent information about all loan costs. Itemizing broker fees allows borrowers to see the exact amount they are being charged for the broker's services, helping them make informed decisions.

This separate presentation makes it easier for borrowers to compare loan offers from different lenders and understand where their money is going. Clear delineation of broker fees enhances transparency, ensuring that borrowers are not confused by how their costs are aggregated with other fees. By following this guideline, lenders comply with regulatory requirements aimed at protecting consumers.

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Lumped together with other origination fees

Excluded from itemized fees

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