48. A seller pays 2 discount points when selling a house to a buyer with an FHA mortgage loan. This money is paid to the
Answer: C
The seller pays the 2 discount points to the lender.
In this scenario, the seller pays 2 discount points, which are fees that reduce the interest rate on the FHA mortgage loan. This payment is made directly to the lender who is providing the financing for the buyer's home purchase.
A) FHA
While the FHA insures the mortgage, the discount points themselves are not paid to the FHA directly by the seller. Instead, these points are a cost associated with the loan that affects the interest rate charged by the lender.
B) buyer.
Although the buyer benefits from the reduced interest rate that results from the seller paying the discount points, the money does not go directly to the buyer. The payment is made to the lender, not the buyer.
C) lender.
This option is correct because the two discount points are paid to the lender. The points are used to lower the interest rate on the mortgage loan that the buyer will ultimately be responsible for repaying.
D) selling licensee
The selling licensee does not receive the payment for the discount points. Their role is to facilitate the sale, but the financial transaction involving the discount points is strictly between the seller and the lender.
Conclusion
The correct answer is C) lender, as the discount points are paid to the lender to reduce the buyer's mortgage interest rate. Options A, B, and D fail to accurately reflect the nature of the payment and its intended recipient, underscoring the specific relationship between the seller and the lender in this transaction.