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When a lender identifies that a borrower does not meet the qualifications for a loan as originally applied for, but recognizes that there is another financing option available that significantly varies from the terms of the original request, the lender has a responsibility to proactively offer this alternate product. This ensures that the borrower is informed about all their options and can make a decision based on the available choices.

Offering the alternate product autonomously signifies that the lender has a duty to present viable alternatives as part of their service to the borrower, especially when the initial request cannot be fulfilled. This action serves to increase transparency and helps the borrower understand various solutions that may still support their financial needs, thus enhancing their overall experience in the lending process.

In this case, choosing to ignore the alternate product or allowing the consumer to navigate the options by themselves would not sufficiently support the borrower's interests. The lender's proposal of the new product demonstrates a commitment to assist the borrower in finding a suitable option, maintaining compliance with regulatory expectations and fostering an ethical lending relationship.