Loan Origination Activities · 27% of the SAFE exammedium
Correct answer: A prepayment penalty is added to the loan
A new 3-day waiting period is triggered if: (1) the APR increases by more than 1/8% for fixed-rate or 1/4% for ARM, (2) a prepayment penalty is added, or (3) the loan product changes (e.g., fixed to ARM). Changes to seller credits, cash to close, or closing dates do not trigger a new waiting period.
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