Which of the following actions is allowed for a mortgage loan originator?

The ability to disclose all fees prior to closing is a critical responsibility for a mortgage loan originator. This transparency ensures that the borrower fully understands the costs associated with the loan, which promotes informed decision-making and trust in the lender-client relationship. Disclosing fees helps borrowers budget accordingly and avoid surprises at the time of closing.

Furthermore, clear fee disclosure aligns with the regulatory requirements set forth by the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), which mandate that consumers receive clear and accurate information about costs and terms related to their mortgage loans. By fulfilling this obligation, mortgage loan originators uphold ethical standards and regulatory compliance in the industry, benefiting both the lender and the borrower.

In contrast, refusing to originate a refinance that does not benefit the client may be seen as an ethical obligation, but it lacks the explicit regulatory requirement that underscores the importance of full fee disclosure. Altering loan terms without client consent would violate trust and potentially legal standards, and charging excessive fees could breach regulatory limits and ethical standards.