NMLS Uniform State Test (UST) 2025 – 400 Free Practice Questions to Pass the Mortgage Exam

The principle behind the anti-steering rule in the Dodd-Frank Act is to prevent mortgage originators from steering consumers toward loans that may not be in their best interest, often driven by higher compensation for the originator. To comply with the safe harbor provisions, lenders must adhere to specific guidelines that prioritize the borrower’s best interest.

Among the choices, focusing on the loan with the lowest Annual Percentage Rate (APR) emphasizes a singular aspect of cost—interest rates—rather than the overall suitability for the borrower. While the APR is an important factor, it doesn't take into account all the relevant costs of the loan or the overall terms that might benefit the borrower. The safe harbor provisions require consideration of the total closing costs, loan terms, and ensuring that a variety of loan options are presented equitably to give the borrower a comprehensive view of their choices.

Therefore, the loan with the lowest APR does not necessarily align with the requirements to protect the borrower’s interests holistically, making it the correct answer to the question. The other options focus on the broader picture of borrower advantages, which are essential for meeting the safe harbor provisions.