Origination ActivitiesQuestion 237 of 400
An underwriter issues a conditional approval. What best describes a loan condition?
a.A final denial that cannot be reversed
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 federal disclosure required only at application
Explanation
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.
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