Regulation Z requires mortgage loan originators to present loan options that are in the consumer's interest and for which the consumer is likely to qualify. Loan options presented must be appropriate to the consumer's financial circumstances, not just the highest rate or those with penalties.
"Loan originators must present loan options for which the consumer likely qualifies, and which are in the consumer's interest, including a loan with the lowest interest rate, lowest points and origination fees, and no risky features if such products are available."
- 12 CFR § 1026.36(e), Regulation Z
References:
CFPB, Loan Originator Compensation Requirements
SAFE MLO National Test Study Guide

If the mortgage loan originator (MLO) becomes aware of a potential change in the borrower's employment status, such as the company closing and the borrower being laid off, the MLO must notify the underwriter.
The borrower's ability to repay the loan could be impacted by the job loss, and failing to update the underwriter would be a violation of proper lending practices.
* Ignoring the information or withholding it (Options A and B) could lead to loan default and is unethical.
* Homeownership counseling (C) is beneficial but not relevant to the immediate concern of loan approval and repayment ability.
References:
* TILA and Ability-to-Repay Rule (ATR)
* Fannie Mae Guidelines for employment verification

A mismatch between the subject property address and the house number photographed by the appraiser is a clear red flag. It suggests the photo may not be of the actual property being appraised, raising serious questions about the validity of the appraisal and possible overvaluation or fraud.
"Warning signs of appraisal fraud include... property photos that do not match the address or appearance of the subject property."
- Fannie Mae Appraiser Independence Requirements (AIR); SAFE MLO National Test Study Guide References:
Fannie Mae, Appraiser Independence Requirements
SAFE MLO National Test Study Guide

Under TRID/Regulation Z, if a borrower requests a change in loan product, this is considered a changed circumstance, and a new Loan Estimate must be provided reflecting the revised terms within three business days.
"A revised Loan Estimate must be provided if a changed circumstance affects the consumer's eligibility for a specific loan product or terms."
- 12 CFR § 1026.19(e)(3)(iv)
References:
CFPB, TRID Rule: Changed Circumstances

The VA permits another person to sign closing documents for a borrower if the signer holds a designated power of attorney. This is common in situations where the borrower is deployed or otherwise unavailable.
"When the veteran is unable to sign documents in person, a designated attorney-in-fact (under a valid power of attorney) may sign on their behalf."
- VA Lender's Handbook, Chapter 9: Legal Instruments, Liens, Escrows, and Title References:
VA Lender's Handbook, Chapter 9
SAFE MLO National Test Study Guide