A borrower notifies his mortgage loan originator (MLO) that he has had a job change and gives the MLO his new pay stubs to support his new income. Which of the following actions should the MLO take, if any?

This choice is incorrect because the MLO should not ignore the job change and updated income. Even if the borrower initially qualified, changes in income can affect the loan approval process, necessitating a review to ensure that the borrower still meets the necessary requirements.

This option is not applicable because an adverse action letter is typically issued when a loan application is denied or when there is a significant negative change in the borrower's circumstances that affects their qualification. Simply updating the income does not constitute an adverse action.

While this choice suggests communication with the underwriter, it incorrectly implies that the underwriter should directly contact the borrower for verification. The MLO should instead provide the updated information to the underwriter for a comprehensive review, rather than leaving verification to the underwriter.