If title services will cost $500, what is the maximum amount that Deb may collect?

Prepare for the West Virginia Mortgage Loan Originator (MLO) Test. Study using flashcards and multiple choice questions, each with detailed explanations. Boost your confidence and get ready to succeed on exam day!

In the context of mortgage loan transactions, it's important to understand the limits set by regulations regarding how much lenders can collect in fees from borrowers. The key point in this scenario is that if the title services cost $500, the lender is allowed to collect an amount that reflects the actual cost of those services.

Given that the cost of the title services is $500, the maximum that Deb may collect would be equal to that actual cost, which is $500. Collecting more than this would not only be inappropriate but could also violate regulations that typically prohibit charging excessive fees or markups on services rendered.

Therefore, the amount of $500 represents the maximum permissible collection for title services in this scenario, aligning with regulatory guidelines designed to ensure transparency and fairness in lending practices.

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