Which document is necessary when a Mortgage Associate refers a borrower to another party?

The Referral Disclosure Document is necessary when a Mortgage Associate refers a borrower to another party because it serves as a formal record that outlines the nature of the referral and any potential fees involved. This document ensures transparency and compliance with regulations, which protect both the borrower and the mortgage associate. By providing this disclosure, the associate informs the borrower about who they are being referred to, the services that will be provided, and any affiliations that may exist. This is crucial in maintaining ethical standards and safeguarding the interests of all parties involved in the mortgage process.

The other documents listed serve different purposes. The Loan Agreement Document pertains to the terms and conditions of a specific mortgage loan between the borrower and lender. The Reverse Mortgage Document relates specifically to a type of loan allowing homeowners to convert part of their home equity into cash, typically geared toward older adults. The Transaction Assessment Document is generally used to evaluate the specifics of a mortgage transaction but does not specifically address the referral process or necessary disclosures associated with it. Thus, the Referral Disclosure Document is the key document for a Mortgage Associate when making referrals.