New Jersey Real Estate Practice Exam Practice Question
Rules for Truth in Lending and RESPA call for disclosure documents to borrowers. How can a managing broker best prepare associated licensees to manage these disclosures?
Correct Answer: B
Rationale: Option B emphasizes the importance of understanding the lender's responsibilities regarding disclosure forms, which is crucial for compliance with Truth in Lending and RESPA regulations. By being knowledgeable about what lenders need to provide, licensees can better guide borrowers through the process.
Option A suggests providing samples for reference, which may not address the broader regulatory context and could lead to misconceptions about the licensee's role. Option C focuses on encouraging immediate acceptance of the Loan Estimate, which may not be in the best interest of the borrower without proper understanding. Option D incorrectly assigns primary responsibility for the Loan Estimate to the listing broker, misrepresenting the lender's role in the process.
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