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CRCM Exam - Question 33


If the institution offers both full and reduced documentation loans and there is a pricing premium attached to the reduced documentation loan, the consumer should:

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Correct Answer: A

If the institution offers both full and reduced documentation loans and there is a pricing premium attached to the reduced documentation loan, the consumer should be alerted to this fact. Transparency in lending practices is essential to ensure that consumers can make informed decisions about their loan options and understand the potential additional costs associated with reduced documentation loans.

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Cam22Option: A
Mar 15, 2024

Consumers should be informed about the pricing premium attached to reduced documentation loans. Transparency in lending practices, including the disclosure of any additional costs associated with certain loan features or requirements, is essential to ensure that consumers can make informed decisions.