NMLS SAFE MLO — Mortgage Loan Originator — All Questions

Premiums for homeowners (hazard) insurance disclosed on the LE are subject to which tolerance?

• a.No tolerance✓
• b.10 percent tolerance
• c.Zero tolerance
• d.They cannot appear on the LE

Homeowners (hazard) insurance premiums are in the 'no tolerance' category because the amount depends on the policy the consumer selects and can vary. The estimate must still be based on the best information reasonably available and made in good faith.TRID

A charge for a service the consumer cannot shop for, provided by an affiliate of the creditor, is subject to which tolerance?

• a.No tolerance
• b.10 percent tolerance
• c.15 percent tolerance
• d.Zero tolerance✓

Charges for services the consumer cannot shop for that are provided by the creditor or an affiliate of the creditor are subject to zero tolerance. Because the creditor controls the provider, it is expected to disclose those amounts accurately.TRID

Which pairing correctly matches the charge to its tolerance category?

• a.Recording fees — 10 percent tolerance; transfer taxes — zero tolerance✓
• b.Both — no tolerance
• c.Both — zero tolerance
• d.Recording fees — zero tolerance; transfer taxes — 10 percent tolerance

Recording fees fall under the 10 percent cumulative tolerance, while transfer taxes are subject to zero tolerance. Distinguishing these two government-related charges is a common exam point.TRID

At closing, which of these is most likely permitted to be higher than the Loan Estimate without a tolerance cure?

• a.The credit report fee charged by the creditor's affiliate
• b.A transfer tax
• c.The creditor's origination fee
• d.Per-diem prepaid interest that increased because closing occurred later in the month than assumed✓

Per-diem prepaid interest is in the 'no tolerance' category, so it can be higher at closing than on the LE, for example when closing occurs later in the month, without triggering a cure. The creditor's origination fee and transfer taxes are zero tolerance, and an affiliate charge for a service the consumer cannot shop for is also zero tolerance.TRID

During processing, an underwriter needs to verify a salaried borrower's income. Which document set most directly supports qualifying income for a W-2 wage earner?

• a.The purchase contract and the seller's disclosure statement
• b.Recent pay stubs, prior-year W-2 forms, and a verification of employment✓
• c.A signed gift letter and the donor's bank statement
• d.Two years of Schedule C business tax returns and a profit-and-loss statement

For a W-2 wage earner, income is documented with recent pay stubs, prior-year W-2s, and often a verification of employment (VOE). Schedule C and P&L statements apply to self-employed borrowers, and gift letters or contracts document other loan facts, not wage income.

An automated underwriting system returns a recommendation on a conventional loan submitted to Fannie Mae. Which system produced the finding?

• a.The Closing Disclosure engine
• b.Loan Prospector (LP/LPA)
• c.Desktop Underwriter (DU)✓
• d.Total Scorecard alone

Desktop Underwriter (DU) is Fannie Mae's automated underwriting system, while Loan Product Advisor (LPA, formerly Loan Prospector) is Freddie Mac's. TOTAL Scorecard is used with FHA loans, and the Closing Disclosure is a settlement document, not an underwriting engine.

A property appraisal comes in $15,000 below the agreed purchase price on a home the buyer is financing at 95% LTV. If nothing else changes, what is the most likely consequence?

• a.The appraisal has no effect because loans are based only on price
• b.The lender bases the loan on the lower appraised value, so the buyer must bring more cash or renegotiate✓
• c.The purchase contract is automatically voided by federal law
• d.The lender must automatically raise the loan amount to cover the gap

Lenders base the loan-to-value ratio on the lower of the purchase price or appraised value. A low appraisal reduces the maximum loan, so the buyer typically must bring additional cash, renegotiate the price, or dispute the appraisal. Federal law does not automatically void the contract.

A borrower requests a rate lock on Tuesday and the loan officer confirms a 45-day lock in writing. What does this lock agreement primarily guarantee?

• a.That closing costs will not increase for any reason
• b.That the loan will be approved by underwriting
• c.That the appraisal will support the purchase price
• d.That the quoted interest rate and points are held for a set period if the loan closes within that window✓

A rate lock guarantees the interest rate and points for a specified period, provided the loan closes within that window and terms do not change. It does not guarantee underwriting approval, appraised value, or that all closing costs remain fixed.TILA-RESPA Integrated Disclosure (TRID)

A flood determination shows the subject property sits in a Special Flood Hazard Area (SFHA), and the loan is federally related. What must the lender require?

• a.The property be re-appraised at a higher value
• b.Flood insurance be maintained on the improvements for the life of the loan✓
• c.The borrower waive any right to flood coverage in writing
• d.The loan be denied automatically

Under the Flood Disaster Protection Act, when a federally related loan secures a building in an SFHA, the lender must require flood insurance covering the improvements for the term of the loan. Being in an SFHA does not by itself require denial or re-appraisal.Flood Disaster Protection Act

A title search reveals an unreleased mechanic's lien from a prior contractor. Before closing, what is the appropriate resolution?

• a.Order a second appraisal
• b.Ignore it because the buyer is not responsible for the seller's contractors
• c.Increase the loan amount to match the lien
• d.Clear the lien so title can transfer free of that encumbrance, typically via payoff or release at settlement✓

An unreleased lien is a cloud on title that must be cleared before the property can transfer with clear, insurable title. This is typically resolved by paying off and recording a release of the lien at settlement. It is not remedied by a second appraisal or ignoring it.

An underwriter issues a conditional approval. What best describes a loan condition?

• a.A federal disclosure required only at application
• b.A promise that the interest rate will drop before closing
• c.A specific item the borrower must satisfy before the loan can be cleared to close✓
• d.A final denial that cannot be reversed

A conditional approval means the loan is approved subject to specific conditions, such as additional documentation or explanations, that must be satisfied before a clear-to-close is issued. It is not a denial, a rate promise, or a disclosure.

At closing, the lender sets up an escrow (impound) account for a borrower. What is the primary purpose of this account?

• a.To hold the borrower's down payment until the deed records
• b.To fund future discount points
• c.To pay the loan originator's commission over time
• d.To collect and pay property taxes and hazard insurance premiums as they come due✓

An escrow/impound account collects a portion of the borrower's monthly payment to pay property taxes and hazard (and sometimes flood) insurance when due. RESPA limits the cushion a lender may require. It is not for down payments, commissions, or points.Real Estate Settlement Procedures Act (RESPA)

A self-employed borrower applies for a mortgage. Which documentation most directly establishes qualifying income?

• a.Two years of personal and business tax returns with a year-to-date profit-and-loss statement✓
• b.The borrower's verbal estimate of monthly earnings
• c.A single recent pay stub
• d.A copy of the borrower's business license only

Self-employed income is typically documented with two years of personal and business tax returns plus a current year-to-date profit-and-loss statement to establish stable, ongoing income. A single pay stub, a verbal estimate, or a license alone is insufficient.

A verification of deposit (VOD) shows a $20,000 deposit two weeks before application that the borrower cannot explain. Why does this concern an underwriter?

• a.Deposits have no bearing on loan approval
• b.Unsourced large deposits may represent undisclosed debt or funds that are not the borrower's own✓
• c.Bank statements are never reviewed in underwriting
• d.Large deposits always disqualify the borrower

Underwriters must verify that funds used for down payment and reserves are the borrower's own and properly sourced. A large, unexplained deposit may be a hidden loan or borrowed funds, which affects the true debt picture, so documentation of the source is required.

In qualifying a borrower, the front-end (housing) ratio is calculated as:

• a.Total monthly debts divided by gross monthly income
• b.Monthly housing expense (PITI) divided by gross monthly income✓
• c.Net monthly income divided by total assets
• d.Loan amount divided by property value

The front-end or housing ratio compares the total monthly housing expense (principal, interest, taxes, and insurance, or PITI) to gross monthly income. The back-end ratio adds all other monthly debts. Loan-to-value is a separate measure of the loan against property value.

A borrower's rate lock expires two days before the scheduled closing due to processing delays. What is the most common consequence?

• a.The lender must pay the borrower a penalty
• b.The loan is automatically canceled
• c.The lender may extend the lock (sometimes for a fee) or re-lock at current market rates✓
• d.The borrower keeps the original rate indefinitely with no action

When a lock expires before closing, the lender typically offers a lock extension, sometimes for a fee, or re-locks at prevailing market rates, which may be higher or lower. The loan is not automatically canceled, and there is generally no automatic penalty paid to the borrower.

Under the appraisal rules of ECOA/Regulation B, when must a lender provide the applicant a copy of the appraisal on a first-lien dwelling loan?

• a.Only if the borrower pays an extra fee
• b.Promptly upon completion, or at least three business days before closing, whichever is earlier✓
• c.Only after the loan closes
• d.Never; appraisals are confidential to the lender

Under ECOA/Regulation B, a lender must provide a copy of appraisals and other written valuations promptly upon completion, or at least three business days before consummation, whichever is earlier. The applicant may waive the timing but still receives a copy.Equal Credit Opportunity Act (ECOA)

During underwriting, a DU finding lists 'Approve/Eligible' but includes verification messages. What do these messages require?

• a.That the borrower re-apply from scratch
• b.That the listed documentation and conditions be obtained and verified to support the finding✓
• c.That the loan be denied because messages appeared
• d.That the interest rate be increased

An 'Approve/Eligible' DU finding still lists verification messages and conditions that the file must document, such as income, assets, and credit items. Satisfying these supports the recommendation. Messages do not mean denial or require re-application.

A survey ordered during closing reveals that the neighbor's fence extends three feet onto the subject property. This is an example of:

• a.A prepayment penalty
• b.An escrow shortage
• c.A rate lock extension
• d.An encroachment that may need to be resolved before closing✓

When a structure or improvement crosses a boundary line onto another parcel, it is an encroachment. It can cloud title or affect value and may need resolution, such as an agreement or title exception, before closing proceeds. It is unrelated to prepayment penalties or rate locks.

At funding, the settlement agent disburses loan proceeds. In a typical purchase, funds are primarily disbursed to:

• a.The seller and to pay off existing liens, taxes, and settlement charges per the settlement statement✓
• b.The loan originator as commission only
• c.The appraiser and inspector before all others
• d.The borrower directly in cash

At funding and disbursement, the settlement agent pays the seller, pays off existing liens and prorated taxes, and covers settlement charges as itemized on the settlement statement/Closing Disclosure. Proceeds are not paid solely as commission or handed to the borrower in cash on a purchase.

A borrower earns a $3,000 monthly bonus that has been consistent for three years and is likely to continue. How may an underwriter treat this bonus income?

• a.It can never be used because bonuses are variable
• b.It doubles the borrower's qualifying income automatically
• c.It may be counted as qualifying income if documented as stable and likely to continue✓
• d.It only counts toward assets, not income

Variable income such as bonuses, overtime, or commissions can be counted as qualifying income when it is documented over an adequate history (commonly about two years) and shown to be stable and likely to continue. It is not automatically excluded or double-counted.

An appraiser uses the sales comparison approach on a single-family home. This approach primarily estimates value by:

• a.Comparing the subject to recent sales of similar nearby properties with adjustments✓
• b.Using only the original purchase price of the home
• c.Dividing net operating income by a capitalization rate
• d.Calculating the cost to rebuild the home new, less depreciation

The sales comparison approach estimates value by comparing the subject property to recent sales of similar homes, adjusting for differences in features, size, and condition. The cost approach rebuilds less depreciation, and the income approach capitalizes income, both used more in other property types.

A loan is 'cleared to close.' What does this status indicate?

• a.The borrower has made the first mortgage payment
• b.All underwriting conditions have been satisfied and the loan can proceed to closing✓
• c.The appraisal has just been ordered
• d.The interest rate has been locked for the first time

'Cleared to close' means underwriting has reviewed and approved all conditions, so the loan can move to the closing/settlement stage. It does not refer to ordering the appraisal, locking the rate, or making a payment.

Under RESPA Section 8, a title company offers a loan originator a cash payment for each referral of settlement business. This arrangement is:

• a.Permitted if under $500
• b.Permitted if disclosed orally
• c.Permitted if the borrower consents
• d.A prohibited kickback for referrals of settlement service business✓

RESPA Section 8 prohibits giving or receiving any fee, kickback, or thing of value for the referral of settlement service business on federally related mortgage loans. Such payments are illegal regardless of amount, disclosure, or borrower consent.Real Estate Settlement Procedures Act (RESPA)

A borrower's back-end debt-to-income ratio is 52%, above program guidelines. Which action could most directly help the borrower qualify?

• a.Order a second appraisal
• b.Change the property address
• c.Increase the loan amount requested
• d.Pay off or pay down a car loan and credit cards to lower monthly debt✓

The back-end ratio includes all monthly debts. Paying off or paying down installment and revolving debts lowers the numerator and reduces the ratio, improving qualification. A second appraisal or a larger loan does not lower the debt-to-income ratio.

An FHA loan is run through an automated underwriting system. Which scorecard evaluates the credit risk for FHA loans?

• a.TOTAL Scorecard✓
• b.Desktop Underwriter Scorecard
• c.Closing Disclosure Scorecard
• d.Loan Prospector Scorecard

FHA uses the TOTAL (Technology Open To Approved Lenders) Scorecard, which runs through DU or LPA to assess credit risk on FHA-insured loans. DU and LPA are the underlying systems, and there is no Closing Disclosure scorecard.

During post-closing, a lender reviews the completed file before selling the loan to an investor. What is the main purpose of this post-closing review?

• a.To reset the borrower's interest rate
• b.To confirm the file is complete, accurate, and compliant so the loan is saleable✓
• c.To re-order the appraisal for the buyer's records
• d.To collect the borrower's first payment in person

Post-closing review (quality control and file assembly) confirms that documents are complete, accurate, and compliant with investor and regulatory requirements so the loan can be delivered or sold in the secondary market. It does not change the rate or collect payments.

A borrower wants to use a $10,000 gift from a parent for the down payment. What documentation does an underwriter typically require?

• a.The parent's tax return only
• b.A promissory note showing the gift must be repaid
• c.A gift letter stating no repayment is expected, plus evidence of transfer and, often, donor ability✓
• d.Nothing; gifts never need documentation

Gift funds require a gift letter confirming the money is a true gift with no expectation of repayment, along with documentation of the transfer of funds and sometimes the donor's ability to give. If repayment were required, it would be a loan, not a gift, and would count as debt.

A lender's title insurance policy (loan policy) primarily protects:

• a.The seller against buyer default
• b.The borrower against declining property values
• c.The lender against loss from covered title defects up to the loan amount✓
• d.The appraiser against valuation errors

A loan (lender's) title policy protects the lender's lien position against covered defects in title, such as undisclosed liens or ownership claims, up to the loan amount. An owner's policy protects the buyer. It does not insure against market declines or default.

An underwriter reviews a borrower's employment stability. A borrower who changed jobs within the same field for higher pay is generally viewed how, compared with one who has frequent gaps and unrelated job changes?

• a.Automatically disqualified for changing jobs
• b.Less favorably, because any job change is a red flag
• c.More favorably, because advancement within a field supports income stability✓
• d.Identically, because job history is never considered

Underwriters assess the likelihood that income will continue. A job change within the same field for career advancement generally supports stability, while frequent employment gaps or unrelated changes raise concerns. Job changes alone do not disqualify a borrower.

A borrower is quoted a 'float-down' option on their rate lock. What does a float-down provision allow?

• a.The borrower to obtain a lower rate if market rates fall during the lock period, usually for a fee✓
• b.The borrower to skip the appraisal
• c.The borrower to switch to an adjustable-rate loan for free
• d.The lender to raise the rate anytime before closing

A float-down option lets the borrower take advantage of a lower rate if market rates decline during the lock period, while still being protected if rates rise. It typically involves a fee and specific terms, and it is unrelated to appraisals or loan type changes.

An appraisal report notes the subject property's highest and best use differs from its current use. Why does 'highest and best use' matter in valuation?

• a.It fixes the loan term
• b.It sets the interest rate
• c.It reflects the legally permissible, physically possible, and financially feasible use that supports maximum value✓
• d.It determines the borrower's credit score

Highest and best use is the reasonably probable use of a property that is legally permissible, physically possible, financially feasible, and maximally productive, and it underpins the appraiser's value conclusion. It does not set rates, credit scores, or loan terms.

In qualifying an applicant end-to-end, a lender evaluates the 'four Cs.' Which set correctly lists them?

• a.Charge, Cushion, Cap, and Carryback
• b.Capacity, Credit, Capital, and Collateral✓
• c.Cash, Coverage, Compliance, and Contingency
• d.Cost, Closing, Contract, and Commission

Traditional underwriting evaluates the four Cs: Capacity (ability to repay), Credit (history), Capital (assets/reserves), and Collateral (the property). The other lists are not the recognized underwriting framework.

A processor orders a verification of employment (VOE) but the borrower started a new job last week. What additional step is most appropriate?

• a.Require the borrower to quit and return to the old job
• b.Ignore the new job entirely
• c.Cancel the loan because the borrower is newly employed
• d.Document the prior two-year employment history and, if needed, verify the offer/start of new employment✓

Underwriting evaluates a two-year employment history to gauge stability. A recent job change is acceptable when the prior history is documented and the new employment is verified, often via an offer letter and a verbal or written VOE. New employment alone does not require denial.

A borrower must receive the Closing Disclosure at least how many business days before consummation of the loan?

• a.Two business days
• b.Three business days✓
• c.Seven business days
• d.One business day

Under TRID, the creditor must ensure the borrower receives the Closing Disclosure at least three business days before consummation. Certain changes (like an APR increase beyond tolerance) can trigger a new three-day waiting period. The seven-day rule applies to the Loan Estimate before consummation.TILA-RESPA Integrated Disclosure (TRID)

During underwriting, an appraiser identifies functional obsolescence in the subject home. What does functional obsolescence refer to?

• a.Physical wear from age and use
• b.A loss in value from outdated design or features that reduce usefulness✓
• c.A decline in the overall neighborhood economy
• d.A lien recorded against the property

Functional obsolescence is a loss in value caused by outdated or poorly designed features, such as an awkward floor plan or too few bathrooms. Physical deterioration is wear and tear, and external obsolescence comes from outside factors like a declining neighborhood.

A borrower with strong income but only 90 days of seasoning on a large deposit asks why 'reserves' matter. What are reserves in underwriting?

• a.The amount of the seller's concession
• b.The appraiser's contingency fee
• c.Liquid assets remaining after closing that could cover several months of mortgage payments✓
• d.The lender's profit on the loan

Reserves are the borrower's liquid assets remaining after down payment and closing costs, often measured in months of PITI. They cushion against payment disruption and strengthen the file. They are not lender profit, seller concessions, or appraiser fees.

A settlement agent prepares to record the deed and mortgage after funding. Recording these documents primarily serves to:

• a.Give public notice of the ownership transfer and the lender's lien✓
• b.Cancel the title insurance policy
• c.Set the borrower's interest rate
• d.Waive the borrower's right of rescission

Recording the deed and mortgage/deed of trust in the public land records gives constructive notice of the change in ownership and the lender's lien position, protecting priority. Recording does not set rates, waive rescission, or cancel title insurance.

An underwriter needs to confirm a borrower's outstanding debts and payment history. Which document is the primary source?

• a.The tri-merge credit report✓
• b.The appraisal report
• c.The flood determination certificate
• d.The purchase contract

A tri-merge credit report combines data from the three major bureaus and is the primary source for a borrower's outstanding debts, balances, and payment history used to calculate ratios and assess credit. The contract, appraisal, and flood certificate serve other purposes.

A borrower is buying a condominium. In addition to the standard file, what does the lender typically require during underwriting?

• a.A commercial appraisal
• b.Only a driver's license
• c.A condo project review, including the HOA's budget, insurance, and owner-occupancy details✓
• d.Nothing extra beyond a house purchase

Condo financing requires a project review to confirm the homeowners association is financially sound, adequately insured, and meets investor requirements for owner-occupancy and litigation. This is in addition to the borrower's standard qualifying documents.

A borrower's application shows income from child support they wish to use to qualify. How may this income be treated?

• a.It only counts as an asset
• b.It counts double because it is tax-free
• c.It can never be used to qualify
• d.It may count if documented, likely to continue for a defined period (often at least three years), and received consistently✓

Child support, alimony, or maintenance may be used as qualifying income if it is documented, has been received consistently, and is likely to continue for at least a defined period (commonly three years). A borrower is not required to disclose it, but if used, it must be supported.

A closing is scheduled, but the underwriter adds a 'prior-to-funding' condition. How does this differ from a 'prior-to-doc' condition?

• a.There is no difference; both are optional
• b.Both must be satisfied only after recording
• c.A prior-to-doc condition must be met before closing documents are drawn, while a prior-to-funding condition must be met before loan proceeds are released✓
• d.A prior-to-funding condition is met after the loan closes

Conditions are sequenced: prior-to-document (PTD) conditions must be satisfied before closing documents are prepared, and prior-to-funding (PTF) conditions must be cleared before loan proceeds are disbursed. Neither is optional, and both precede funding/recording.

After closing, a lender compiles loan-level data such as loan purpose, applicant demographics, and action taken for annual reporting. Which law drives this data collection?

• a.The Fair Credit Reporting Act
• b.The Fair Housing Act
• c.The Home Mortgage Disclosure Act✓
• d.The Truth in Lending Act

The Home Mortgage Disclosure Act (HMDA) requires covered lenders to collect and report loan-level data, including loan purpose, applicant demographic information, and the action taken, to help identify lending patterns. It is a post-origination reporting obligation distinct from FCRA, TILA, or the Fair Housing Act.Home Mortgage Disclosure Act (HMDA)

An appraisal uses the cost approach on a newer, unique home with few comparable sales. The cost approach estimates value by:

• a.Averaging the last three listing prices
• b.Capitalizing the property's rental income
• c.Adding land value to the replacement cost of improvements, less depreciation✓
• d.Using only the borrower's opinion of value

The cost approach estimates value as the land value plus the current cost to replace the improvements, minus accrued depreciation. It is most useful for new or special-purpose properties with limited comparable sales. It is not based on listings, income capitalization, or borrower opinion.

A borrower makes a 20% down payment on a conventional loan. What is one common effect on the loan structure?

• a.An escrow account is prohibited
• b.The interest rate must be adjustable
• c.Private mortgage insurance is generally not required at 80% LTV or below✓
• d.The appraisal is waived automatically

On a conventional loan, a 20% down payment puts the loan at 80% loan-to-value, which typically eliminates the requirement for private mortgage insurance (PMI). The down payment does not force an adjustable rate, prohibit escrow, or automatically waive the appraisal.

An appraiser adjusts a comparable that has an extra bathroom compared to the subject property. In the sales comparison approach, adjustments are made to the:

• a.Subject property, to match each comparable
• b.Borrower's income, to match the value
• c.Comparable properties, to make them reflect the subject✓
• d.Loan amount, to match the appraisal

In the sales comparison approach, adjustments are applied to the comparable sales, not the subject, to account for differences so each comp reflects what the subject would sell for. If a comp is superior (extra bath), its price is adjusted downward. The subject is never adjusted.

At settlement on a purchase, property taxes are 'prorated' between buyer and seller. What does proration accomplish?

• a.It doubles the tax bill at closing
• b.It allocates taxes so each party pays for the portion of the period they owned the property✓
• c.It transfers the taxes to the lender permanently
• d.It waives the taxes for the year

Proration divides recurring costs like property taxes between buyer and seller based on the portion of the tax period each owns the property. This ensures each party pays their fair share as of the closing date. It does not waive, double, or permanently transfer the taxes.

A borrower's DU findings return 'Refer/Eligible.' What does this typically mean for the file?

• a.The rate is automatically reduced
• b.The loan is denied and cannot proceed
• c.The file requires manual underwriting because the automated system did not issue an approve recommendation✓
• d.The loan is automatically approved with no review

A 'Refer' recommendation means the automated system could not render an approval and the file must be manually underwritten by a person, who evaluates compensating factors. 'Eligible' indicates the loan meets program parameters. Refer is not an automatic approval or denial.

During processing, the borrower opens a new credit card and finances furniture before closing. Why can this jeopardize the loan?

• a.It guarantees a faster closing
• b.It automatically lowers the interest rate
• c.It has no effect once the application is submitted
• d.New debt can raise the debt-to-income ratio and change the approval, especially if a soft re-pull occurs before closing✓

New debt taken on during processing increases monthly obligations and the debt-to-income ratio. Lenders often re-verify credit shortly before closing, and new accounts can invalidate the approval or delay closing. Borrowers are typically advised to avoid new credit until after closing.

A title commitment lists Schedule B exceptions. What are these exceptions?

• a.Matters the title policy will NOT insure against, such as certain easements or restrictions✓
• b.The borrower's monthly payment breakdown
• c.Amounts the lender must pay the appraiser
• d.The lock expiration dates

Schedule B of a title commitment lists exceptions, meaning specific matters like easements, covenants, or restrictions that the title policy will not cover. Reviewing these helps determine whether title is acceptable. They are unrelated to appraiser fees, payments, or lock dates.