An MLO is required to provide how many loan options to a consumer at the time of inquiry for each type of transaction the consumer expresses interest in?

The requirement for a mortgage loan originator (MLO) to provide consumers with loan options stems from regulations aimed at fostering transparency and enabling consumers to make informed decisions regarding their financing choices. When a consumer inquires about loan options for a specific transaction type, the MLO is obligated to present at least three loan options. This ensures that the consumer has a range of choices, allowing them to compare different loans based on factors such as interest rates, terms, and costs.

Providing a diversified set of options not only assists the consumer in identifying what best suits their needs but also promotes responsible lending practices. This obligation reinforces the role of the MLO in supporting informed consumer choices, contributing to a more transparent mortgage market.