Florida Broker Practice Exam

What does the Servicing Disclosure Statement inform the borrower about?

1. Limits on loan amounts

2. Potential loan interest rates

3. Intent of the lender to service the loan or transfer it

4. Fees associated with closing

The correct answer is: Intent of the lender to service the loan or transfer it

The Servicing Disclosure Statement is a crucial document in the lending process, as it informs the borrower about the lender's intentions regarding the servicing of their loan. Specifically, it communicates whether the lender plans to service the loan themselves or transfer the servicing rights to another entity. This disclosure is important for borrowers to understand as it can affect who they will be communicating with regarding their loan and how their payments will be processed. By providing this information, the Servicing Disclosure Statement ensures transparency and helps borrowers make informed decisions about their loans and the overall loan servicing experience. It is a key piece of consumer protection in the lending process, as it allows borrowers to be aware of any potential changes in who will manage their loan after it closes. Options discussing limits on loan amounts, potential interest rates, or closing fees are not relevant to the Servicing Disclosure Statement and therefore do not convey the critical information this document is designed to provide.