Loan Origination Activities Terminology Quiz
For the LE, a _____day is a day on which the lender's offices are open to the public for carrying out substantially all its business functions. a) Consummation day b) Business day c) Working day d) None of the Above
b) Business day
______ is a conditional commitment to grant a mortgage a) Pre-Qualification b) Pre-Approval c) Pre-Condition d) None of the Above
b) Pre-Approval
___________ includes an analysis of the borrower's credit report and an in-depth look at the borrower's income ability to purchase a home: a) Pre-qualification b) Pre-Approval c) Pre-Commitment d) None of the Above
b) Pre-Approval
PI stands for: a) Principal and Insurance b) Principal and Interest c) Partial Amortization and Insurance d) None of the Above
b) Principal and Interest
_____________ is the amount of net income remaining (after deduction of debts and obligations and monthly shelter expenses) to cover family living expenses such as food, health care, closing, and gasoline. a) DTI b) Residual Income c) Housing expense d) Total expense
b) Residual Income
Another way to identify an HPML is: a) Section 32 of TILA b) Section 35 of TILA c) Section 8 of RESPA d) None of the Above
b) Section 35 of TILA
TILA defines a(n) _______as anything produced with the intent to sell a credit plan: a) Advertisement b) Selling tactic c) Trigger term d) Bait and Switch
a) Advertisement
APR stands for: a) Annual Percentage Rate b) Average Prime Offer Rate c) Annual Percentage Offered Rate d) None of the Above
a) Annual Percentage Rate
_________loan allows for a borrower to assume a current mortgage generally with little to no change in terms (especially the interest rate) if approved by the lender. a) Assumable b) Guaranteed c) Ensured d) Transferrable
a) Assumable
APOR stands for: a) Average Prime Offer Rate b) Annual Percentage Rate c) Annual Percentage Offered Rate d) None of the Above
a) Average Prime Offer Rate
COE stands for: a) Certificate of Eligibility b) Certificate of Entitlement c) Certificate of Entrance d) None of the Above
a) Certificate of Eligibility
CRV stands for: a) Certificate of Reasonable Value b) Certificate of Reasonable Valuation c) Certificate of Responsible Value d) None of the Above
a) Certificate of Reasonable Value
If the borrower owns the land and the house, they hold their home in: a) Fee Simple b) Leasehold c) Tenants in Common d) None of the Above
a) Fee Simple
The abbreviation of the Homeownership and Equity Protection Act is: a) HOEPA b) HOPA c) HPA d) None of the Above
a) HOEPA
LO Comp is the abbreviation for what federal law: a) Loan Originator Compensation b) Loan Officer Cooperation c) Loan Officer Compensation d) None of the Above
a) Loan Originator Compensation
NOV stands for: a) Notice of Value b) Notice of Valuation c) Notice of Volume d) None of the Above
a) Notice of Value
PITI stands for: a) Principal, Interest, Taxes and Insurance b) Principal, Interest, Title and Insurance c) Principal, Insurance, Title and Interest d) None of the Above
a) Principal, Interest, Taxes and Insurance
PMI stands for: a) Private Mortgage Insurance b) Privileged Mortgage Insurance c) Partial Mortgage Insurance d) None of the Above
a) Private Mortgage Insurance
Another way to identify HOEPA is: a) Section 32 of TILA b) Section 35 of TILA c) Section 8 of RESPA d) None of the Above
a) Section 32 of TILA
________ are costs that the seller or lender are paying: a) Seller Concessions b) Loan Origination Fees c) Title Fees d) Prepaids
a) Seller Concessions
TIP stands for: a) Total Interest Percentage b) Total Intended Principal c) Total Interest Provided d) None of the Above
a) Total Interest Percentage
____ is what happens when an MLO pressures a borrower into a specific loan product even if it's harmful to the borrower. a) Flipping b) Churning c) Steering d) Predatory Lending
c) Steering
UFMIP stands for: a) Upfront Mortgage Insurance Principal b) Upfront Mortgage Insurance Payment c) Upfront Mortgage Insurance Premium d) None of the Above
c) Upfront Mortgage Insurance Premium
A__________is a phrase that represents the attractive features of the credit plan within the advertisement a) Advertisement b) Social media post c) Selling tactic d) Trigger term
d) Trigger term
