A borrower has told the mortgage loan originator that they had recently paid off an account that was listed on their credit report. Which of the following information will they need to provide the lender to prove the account has been paid off?
A.
Oral confirmation from the borrower
B.
An updated statement showing a zero balance
C.
A letter from the borrower explaining that they paid it off
To prove that an account listed on a credit report has been paid off, the borrower must provide an updated statement showing a zero balance. This is the most direct and verifiable method for a lender to confirm the account has been settled.
Oral confirmation (A) or a letter from the borrower (C) are not acceptable documentation, as they lack third-party verification.
No further documentation would be required if the credit report already reflects the zero balance, but until then, updated documentation is necessary.
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit