Unit 10 Quiz

The Real Estate Settlement Procedures Act applies to which of the following?

A loan secured by a first trust deed securing real estate upon which there is one-to-four family residential dwelling.

Which of the following activities is not commonly performed by a mortgage broker?

Mortgage brokers underwrite loans and fund them at closing.

The Seller Financing Disclosure Statement only applies to a(n):

arranger of credit.

Which Act established the Consumer Financial Protection Bureau and authorized it to regulate consumer financial products and enforce several consumer protection laws?

Dodd-Frank Act

All of the following are risk factors that the lender assesses during the underwriting process, except the borrower's:

Highest level of education completed

Which of the following statements is true regarding the mortgage market?

The primary mortgage market is where lenders make mortgages to borrowers

The broker negotiating the loan must keep a signed copy of the Mortgage Loan Disclosure Statement for how many years?

Three

Which of the following is not one of the credit reporting agencies used by lenders to research a borrower's credit record?

TransAmerica

——is the process of evaluating a borrower's risk factors before the lender will make a loan.

Underwriting

Which institutional lender commonly makes short-term construction loans?

commercial banks

The Truth in Lending Act (Regulation Z) requires:

creditors to disclose credit terms so consumers can make comparisons

Which economic stimulation tool of the Federal Reserve involves purchasing and selling government securities?

open market operations

An economic situation in which the supply of money is limited and the demand for money is high, as evidenced by high interest rates is:

tight money