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An MLO is processing a loan and discovers the borrower has an affiliated business arrangement with the title company. Under RESPA, what is required?

Loan Origination Activities · 27% of the SAFE exameasy

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Correct answer: A written AfBA disclosure must be provided to the borrower

RESPA requires written disclosure of Affiliated Business Arrangements (AfBA). The borrower must be informed of the relationship and told they are free to choose alternative providers. The arrangement itself is not prohibited — only the failure to disclose it.

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