NMLS PRACTICE QUESTIONS

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

A consumer had the right to inspect his HUD-1 Settlement Statemtn how many days prior to closing?

1 day

test mortgage transferred servicing rights of some of its mortgage loans to answer mortgage, Lender must send a servicing transfer statement to the affected borrowers how many days before the effective date of transfer?

15 days before the effective date of transfer a Lender must send the servicing transfer statement to the affected borrowers

when a telemarketer calls a person on the "do not call" registry in violation of the no not call regulations he is subject to a fine of

16,000$

R si a licensed mortgage broker, He wants to call former clients for referrals. He can contact them even if on the federal do not call list for up to

18 months

A lender is obligated to provide a borrower with a HUD-1 Settlement Statement how many days prior to closing?

1day

what is the variance allowed on adjustments for appraisals according to FNM and Freddie?

20%

what percentage variance on a Fannie Mae appraisal report is tolerable when dealing with comps?

20%

Truth in Lending provides for a right to rescind certain loans secured by a principal residence. The rescission period is

3 business days

an applicant for a real estate loan can not be asked about his

RELIGION

the risk that an agent may not have his clients best interest at heart is called

Principal-Agent risk

The purpose of a Market Conditions Addendum is to

Provide the Lender with a clear understanding of the market trends and conditions in a subject neighborhood

a 3/1 ARM is?

a fixed period adjustable mortgage rate loan in which the rate is fixed for the frist 3 years and then adjusted every year consequently to those.

what does HUD define as a "referral"

a lead generation company worker providing information on a broker to a customer

the primary purpose of ECOA is to ensure that

all borrowers get equal chance to loan

a property that is appraised with a higher than market value results in

an inflated appraisal

an appraisal is

an opinion of value

a copy of the appraisal is provided

at close of escrow

the HUD-1 Settlement Statement includes all of the following Except

housing expense ratio

if loan is fraudulent what actions are NOT typical

increasing borrowers interest rates

a conventional loan is a loan that

is not issued, insured, guaranteed by government entity

the Homeowners Protection Act (HPA) of 98 provides that a borrower with a good payment history has the right to request in writing the cancellation of private mortgage insurance when he pays down his mortgage to the point that

it equals 80% of the original purchase price or the appraised value of the home

which of the following is true of the COFI

it is the slow moving COST OF FUNDS INDEX

a Loan oroginator creates a marketing plan to make between 2-4k per loan. He agrees to do the 300k loan for his cousin for a 0.75% commission and 400$ processing fee. this transaction is

legal and Ethical because he is with in his marketing plan

The lowest payment option for an option ARM is

minumum payment

Included in the servicing of a mortgage loan are the collection and or remittance of payments that include interest, principal and escrow items fro the

mortgagee, mortgagor, and lender

a credit report will always display which of the following?

name and social security number

under the Gramm-Leach-Bliley Act a person is considered a consumer of a financial institution when the person

obtains credit from the financial institution for personal reasons

how to find penamty in dollar amount from a 125k house and a loan of 100k, when loan balance is at 75k with a 1.5% penalty

original loan amount * penalty percentage charge= dollar amount of penalty charge

a 240/60, 20k loan is made with interest at 9% per year. Which is true?

this is a ballon loan with a loan term of five years 240/12= number of years in loan 60/12= number of years until fully amortized and needs to be paid off or refinance

the 3 day right to rescission provided by TIl and regulation Z applies to a loan

to refinance a loan from the same institution that fails to cover the unpaid balance of the prior loan plus closing costs

how can one calculate the number of years it will take to recover the costs of refinancing a loan?

total costs/ monthly savings bc of refinance/ 12

which of the following would result in the combined Loan to ratio?

total of all loans/ property value

which of the following is true of an FHA borrower?

unless net rental income can be verified from tax returns, 75% nof gross rental income is counted as qualifying income

when is the appraisal disclosure required to be delivered

when complete application is taken

borrower right to receive appraisal with in

30 DAYS

a creditor must advise a mortgage loan applicant of the status of his application with in how many days of receipt?

30 days

prequal this borrower: dti is 40%, income is 10k, non housing expense is 1k a month. How much will the PITI be?

3k because the dti= housing expenses +non housing expenses/ gmi so 4000- 1000=3000

a home is appraised at 100k the borrower currently has a loan of 50k and an open end line of credit with a limit of 25k and a current balance of 15.5k what is his LTV

50%

for a 300k 3/1 ARM with a rate of 6.5% whaou would the per diem interest be based on a 360 day year?

54.17 300k*6.5=t t/360= per diem

Fannie Mae requires occupancy with in

60 days

purchase price 100k appraised value 150k loan amouont 50k and second loan 20k what is the CLTV?

70% = 50k+20k/ 100k= CLTV

which federal agency administers Regulation B implementing ECOA, Rgulation C implementig HMDA and Regulation Z implementing TILA?

FEDERAL RESERVE SYSTEM

in a qualification of an applicant who receives child support and alimony

CHILD SUPPORT INCOME CAN BE GROSSED UP

RESPA does not require lender disclosures of closing costs and procedures for which of the following loans?

CONSTRUSCTION LOANS

an analysis opinion or conlcusion as to the nature quality and value of a specific piece of real estate is an

Appraisal

All of the following are considered dwellings under the Home Mortgage Disclosure Act EXCEPT

A recreational travel trailer

which is not part of total Prepaid Finance Charge (PFC FEE)

APPRAISAL

the clause in a mortgage that allows the lender to foreclose if the borrower defaults is the

Acceleration Clause

A COFI index is defined as

COST OF FUNDS INDEX

what is the best description for a 360/180 loan?

Ballon loan

Right to Rescind is not valid on which of the following

Commercial Purchase

The ECOA prevents discvrimination against which of the following?

DISABILITIES

Who is the entity that administers RESPA?

Department of Housing

which law prohibits a lender/ mortgage broker from makinf any oral/ written statement, in advertising or otherwise to applicants or prospective applicants that would discourage a reasonable person from making or pursuing an application

ECOA

SSPL should be prepared based on? (SSPL= SETTLEMENT SERVICE PROVIDER LIST)

Final itemized costs

what is Fannie Mae (before market changes and government intervention)

Government supervised but privately owned

RESPA is adminstered by

HUD

what agency is TILA regulated by?

HUD

RESPA requires that a borrrower be given which document at closing ?

HUD-1 Settlement Statement

A woman may be denied credit on the basis of any of the following EXCEPT

Her current pregnancy is an indication that she may stop working

a homeowner had a home worth 200k. he has an outstanding loan of 165k and a HELOC with a limit of 30k which he has drawn 12k. Which of the following is not true?

His TLTV is 94% you must calculate LTV, CLTV, and TLTV TLTV is higher than CLTV and LTV

a mortgage broker refers a loan to another broker, CAN the referring broker receive anf compensation?

It is Ok to get referral fee if the fee comes from the borrowers cahs to close and is presented on the HUD

when a federally related or insured lender learns that a property is in a flood zone, it mist

INFORM THE BORROWER

what is considered a illegal referral?

Lead generating loan originator gets % of loan amount on closed deal

if the loan amounts, maturity dates and interrst reats are the same for loans A and B, but loan A is a straight (interest only) loan and loan B is fully amortized

Loan B will have higher periodic payments

which of the following would be included in an escrow or impound account?

Mortgage insurance premiums

it is ok to discriminate on age when?

NEVER

the HUD-1A Settlement Statement is designed for whenn

NO SELLER IS INVOLVED / REFINANCE

As the deadline approaches for the closing date established in the buyer's sale agreement, the buyer's loan application has not yet been approved but seems to be headed for approval. the loan originator should...

Notify the real estate broker to try to get an extension of closing deadline

The UNIFORM RESIDENTIAL LOAN APPLICATION (1003) includes a section reqiesting information for government monitoring. applicants must complete this section

ONLY IF THEY WISH

A lender who preys upon unsophisticated borrowers in order to strip them of their home equity is engaging in

PREDATORY LENDING

the acronym PFC stands for

PREPAID FINANCE CHARGES

ECOA serves to

PREVENT DISCRIMINATION IN THE MORTGAGE LENDING INDUSTRY

Inclusion of the premium for single-premium credit life insurance in the principal loan amount with out the borrowers informed consent is one example of

Packing

what methods are not allowed to deliver the privacy policy?

Poster in odd location

Purpose of RESPA is

Regulate closing process

the federal regulation that implements the Real Estate Settlement Procedures Act (RESPA) is

Regulation X

the type pf loan that does not require ant verification of assets or income or periodic repayment is a

Reverse Mortgage

a borrower with less than perfect credit or othere risk factors may qualify most easily for what type of loan?

Subprime loan

at closing a borrower may deposit funds to establish reserves for which of the following?

TAXES AND INSURANCE

what disclosure would show if a loan has a balloon payment or not?

TIL

the cost of a loan is shown as an annual percentage rate in the

TIL disclosure statement

a lender can be protected from loss encumbrances or a defective title through

Title insurance

which of the following statements regarding title insurance is true?

a borrower is required be the lender to pay fro the lenders title insurance

a loan applicnats employment is usually verified by a

VEO (VERIFICATION OF EMPLOYMENT)

the truth in lending form provides

borrowers with an idea of the total closing costs and finance charges

who orders table funding "when closing in their own name"

brokers/ third parties

the TIl is not required on any business or commercial credit lines being used for any

business transaction

interest onlu has what feature?

can be paid off faster than fully amortized

what is a convertible ARM? it allows the borrower to do what?

change from an adjustable rate to a fixed rate mortgage

with a full disclosure to the consumer and a contractual agreement requiring confidentiality but the third party a financial institution can provide nonpublic personal information to a non affiliated party

for the use of Marketing the financial institutions own products

the rules relating to the Federal Trade Commission's "no call" registry allows calls to persons on the "no call" list

for up to 18 months after business transaction has been completed with them and up to 3 months after they inquiry

If a lender discovers that fire policy is not in effect, what can happen?

forced place insurance

a 2/1 buydown

reduces the interest rate by 2% the first year and 1% the second year, until it reaches its original principal interest for example 1st year=4.5% 2nd =5.5% 3rd= 6.5% 4th= 6.5% and so on

a defeasance clause

states the lender will release the lien when the loan is repaid

PMI AND MIP are intended to cover whose risks

the Lenders

following section IX (acknowledgements) in the 1003 loan application, the form is to be signed to signify that

the applicant represents that all information contained in the form is truthfully represented

which of the following is true regarding prepayment penalties in todays mortgage market?

the are almost always used in predatory loans

which of the following need not to be given to a consumer who applies for an ARM loan?

the interest rate upon the first adjustment

service release premium represents

the profits a bank makes when selling the servicing rights to a loan


Kaugnay na mga set ng pag-aaral

Community Program Planning, Implementation, and Evaluation (E2)

View Set

The American Nation Chapter 9 Test Study Guide

View Set

Example of Practice Questions HA Exam #1?

View Set

Marketing Chapter 20 - Personal Selling and Sales Management

View Set

Prin of Entrepreneurship Exam 2 - MindTap Questions

View Set