EXAM 5
How often must a borrower renew owner's title insurance? With each refinance When the house is sold to the next owner Owner's title insurance expires every seven years It is not necessary to renew
IT IS NOT NECESSARY TO RENEW Owner's title insurance is good for the period of time that a borrower owns the home, meaning it must only be purchased once and does not require renewal.
An independent contractor is required to: Become state-licensed as a loan originator Pay a registration fee to the NMLS to be included in the state fund Complete six additional hours of education annually Originate loans within the limitations of the requisite surety bond
BECOME STATE-LICENSED AS A LOAN ORIGINATOR An independent contractor is required to become state-licensed in order to increase accountability within the NMLS system.
Which of the following statements would be permissible when communicating with an appraiser? "Can you explain why this property is valued so low, compared to the current market?" "Your appraisals have been coming in lower than expected lately. We are going to start using another appraiser." "Your last appraisal did not meet the minimum value we expected. We are going to have to wait on paying your invoice until we obtain a second opinion." "I need this property to value at a minimum of $200,000."
"CAN YOU EXPLAIN WHY THIS PROPERTY IS VALUED SO LOW, COMPARED TO THE CURRENT MARKET?" When communicating with an appraiser, it would be permissible to ask the appraiser to provide more information about appraisal results.
A property is valued at $295,000. The property is subject to a first mortgage and a second mortgage, with a CLTV of 77%. The current balance on the second mortgage is $29,500. What is the approximate amount of the first mortgage? $256,650 $227,150 $204,435 $197,650
$197,650 The approximate amount of the first mortgage is $197,650. This can be calculated using the information given here, according to the following formula: [first mortgage + second mortgage] / appraised value = CLTV. In this case, the question provides the amount of the second mortgage ($29,500), the appraised value of the property ($295,000), and the CLTV (77%); the amount of the first mortgage (x) must be determined. Using this formula would result in the following equation: [x + $29,500] / $295,000 = .77. First, multiply $295,000 by .77 ($227,150). This figure is equal to the first mortgage (x) plus the second mortgage ($29,500). Subtract $29,500 from $227,150 to find the amount of the first mortgage ($197,650).
Sam Slezee was found to be providing mortgage loan origination services without a state license. A temporary order to cease and desist engaging in such activities was issued against Sam. While under the order, Sam completed three transactions. What is the maximum fine a state licensing agency may impose on him? $25,000 $50,000 $75,000 $100,000
$75,000 The maximum amount of penalty for each act or omission is $25,000. Each violation or failure to comply with any directive or order of the state licensing authority is a separate and distinct violation.
The Peterson family is buying a new home and their new P&I payment totals $1,800 per month. Their annual tax bill is $3,000, and their annual homeowner's insurance premium is $720. The family's annual income totals $98,520. What is their housing (i.e., front-end) ratio? 22% 32% 36% 26%
26% The Petersons' housing ratio - also known as the front-end ratio - is 26%. This is calculated by comparing monthly housing expenses, such as flood insurance, homeowners insurance, and other monthly housing costs, to gross monthly income. In this case, add together the $1,800 mortgage payment with the $250-per-month tax payment and $60-per-month homeowner's insurance payment. Divide that total ($2,110) by the total monthly income of $8,210 (annual income of $98,520, divided by 12), equaling 26%.
Conforming loan guidelines generally include DTI ratios of: 26% / 38% 31% / 43% 28% / 41% 28% / 36%
28% / 36% The standard conforming DTI ratios for Fannie Mae and Freddie Mac are 28% (housing) and 36% (total debt).
An ARM loan has a 4.00% start rate, and it is time for the first adjustment to be made. It has a periodic cap of 1% and a lifetime cap of 5%. What is the highest that the interest rate could be after the first adjustment? 9% 7% 5% Impossible to answer without the margin and index known
5% An ARM with a start rate of 4.00% and a periodic cap of 1% (no initial cap) could move no higher than 5% on its first movement.
A lender is trying to lure customers with advertisements for "Minimum Monthly Payments to Meet Any Budget!" This advertisement must also include an equally prominent statement in close proximity which alerts consumers that: The loan may not be paid off by the end of the loan term The loan is only advised for borrowers with a short-term interest in the dwelling used to secure the loan The borrower should seek homeownership counseling prior to applying for the loan A balloon payment may result from minimum periodic payments
A BALLOON PAYMET MAY RESULT FROM MINIMUM PERIODIC PAYMENTS he advertisement must include a statement that a balloon payment may result from minimum periodic payments.
The FCRA places all of the following limitations on the inclusion of negative information in credit reports, except: A limit on bankruptcies that are more than ten years old A limit on accounts placed for collection that are more than seven years old A limit on tax liens that are more than seven years old A limit on bankruptcies that are more than seven years old
A LIMIT ON BANKRUPTCIES THAT ARE MORE THAN SEVEN YEARS OLD Most negative information that is more than seven years old is not included in a credit report; however, bankruptcies may be reported for up to ten years.
The responsibilities of a loan servicer include: Disbursing escrow funds, managing trust accounts, and adjudicating foreclosure proceedings Sending closing documents, collecting escrow funds, and obtaining loan funds for clients Accepting payments, disbursing escrow funds, maintaining records, and managing delinquent accounts Accepting applications, disbursing interest and principal, and maintaining origination records
ACCEPTING PAYMENTS,DIBURSING ESCROW FUNDS, MAINTAINING RECORS, AND MANAGING DELINQUENT ACCOUNTS Loan servicers handle many tasks, including accepting payments, disbursing escrow funds, maintaining records, and managing delinquent accounts.
Mortgage insurance premiums are required for: All conventional loans with an LTV greater than 80% The first five years of the loan term as long as equity position is less than 20% All FHA loans All FHA loans until 20% equity position is attained
ALL FHA LOANS Mortgage insurance premiums are required for all FHA loans.
It is a violation of TILA for a loan originator to collect _____ before providing a loan applicant with _____. A fee for a credit report/a Loan Estimate An origination fee/a Closing Disclosure Information on income and assets/a Good Faith Estimate An origination fee/a Loan Estimate
AN ORIGINATION FEE/A LOAN ESTIMATE The collection of an origination fee prior to providing a Loan Estimate is illegal.
For the purposes of providing a Loan Estimate, a "business day" is: Any day except for Sundays Any day except for Sundays and legal public holidays Any day on which the creditor's offices are open to the public for carrying out substantially all business functions Any day of the week
AND DAY ON WHICH THE CREDITOR'S OFFICES ARE OPEN TO THE PUBLIC FOR CARRYING OUT SUBSTANTIALLY ALL BUSINESS FUNCTIONS For the purposes of providing a Loan Estimate, a "business day" is any day on which the creditor's offices are open to the public for carrying out substantially all business functions.
A conditional refinance provision might be a feature of what type of loan? Option ARM 15-year fixed Interest-only ARM Balloon
BALLOON A balloon loan may be eligible for refinance if it carries a conditional refinance provision. This means the loan may qualify for refinance if certain conditions are met, including: borrower must live in the house; no second liens in place; must be current and not have been late in 12 months; new rate cannot exceed 5% over the note; docs must be signed and fees paid.
Lisa and Ryan are moving out of state and have sold their home. Unfortunately, the closing on their old home is not for another two months, and they need funds to begin making payments on their new home, which they have closed on and plan to move into immediately. Their lender is likely to suggest that they secure: A construction-to-permanent loan A subprime loan An interest-only loan Bridge financing
BRIDGE FINANCING Bridge financing is used to help homeowners who are selling one home and buying another to make payments on their new home loan while waiting for the closing date on their old home to arrive.
An originator's unique identifier must be shown on all but which of the following documents? Business signage Mortgage loan applications Advertisements Business cards
BUSINESS SIGNAGE The NMLS does not require an individual originator's unique identifier to be placed on company materials, including business signage.
If a borrower selects a mortgage loan covered by HOEPA, he or she: Can waive the three-day waiting period between the receipt of HOEPA disclosures and consummation of the loan after submitting a written request that is signed by the parties entitled to the waiting period and which describes the emergency and consent to the waiver Cannot waive the three-day waiting period between the receipt of HOEPA disclosures and consummation of the loan Can waive the three-day waiting period between the receipt of HOEPA disclosures and consummation of the loan with the creditor's approval Can waive the three-day waiting period between the receipt of HOEPA disclosures and consummation of the loan after signing a preprinted lender-provided form which states that the credit is needed to meet a bona fide personal emergency
CAN WAIVE THE THREE-DAY WAITING PERIOD BETWEEN THE RECEIPT OF HOEPA DISCLOSURES AND CONSUMMATION OF THE LOAN AFTER SUBMITTING A WRITTEN REQUEST THAT IS SIGNED BY THE PARTIES ENTITLED TO THR WAITING PERIOD AND WHICH DESCRIBES THE EMERGENCY AND CONSENT TO THE WAIVER If a borrower selects a mortgage loan covered by HOEPA, he/she can waive the three-day waiting period between the receipt of HOEPA disclosures and consummation of the loan after submitting a written request that is signed by the parties entitled to the waiting period and which describes the emergency and consent to the waiver.
Nontraditional credit includes all of the following, except: Payments to a landlord Car loans Electric bills Telephone bills
CAR LOANS Nontraditional credit includes payments for things not traditionally tracked by or reported to the credit bureaus. This includes things like rent and utility bills.
Two types of loans used to finance the construction of a property are: Pre-construction and full construction Fully-amortized and interest-only Interim and permanent construction Construction-to-permanent and stand-alone construction
CONSTRUCT-TO-PERMANENT AND STAND-ALONE CONSTRUCTION Construction-to-permanent and stand-alone construction loans are two options used to finance the construction of a home being built. Both have advantages and disadvantages based on the borrower's needs and the timeline of the construction.
All of the following may be considered employment red flags, except: Credit history is missing entirely Paystub check numbers that are out of sequence or do not correspond with payroll dates W-2s that are handwritten and may not include a company logo Social Security Numbers on the application which do not match those on the income documents
CREDIT HISTORY IS MISSED ENTIRELY Missing credit history is a credit report red flag, not an employment red flag.
The primary reason for adopting special appraisal requirements for HPMLs was to: Discourage the use of inflated appraisals to flip properties Discourage subprime lending Ensure that appraisals include a physical inspection of the interior and exterior of a home securing a loan Encourage the use of certified and licensed appraisers
DISCOURAGE THE USE OF INFLATED APPRAISALS TO FLIP PROPERTIES The primary reason for adopting special appraisal requirements for HPMLs was to discourage the use of inflated appraisals to flip properties.
Underwriting of non-qualified mortgages must compute periodic payments that: Include consideration of periodic rate caps Do not take periodic rate caps into consideration Do not take lifetime rate caps into consideration Include consideration of the value of the dwelling as a borrower asset
DO NOT TAKE PERIODIC RATE CAPS INTO CONSIDERATION Underwriting of non-qualified mortgages must compute periodic payments that do not take periodic rate caps into consideration.
Underwriting guidelines for conforming loans are created by: Fannie Mae and Freddie Mac HUD FHA Freddie Mac and Ginnie Mae
FANNIE MAE AND FREDDIE MAC Conforming loans are subject to loan limits, down payment requirements, income requirements, debt-to-income ratios, and other underwriting guidelines established by Fannie Mae and Freddie Mac.
Which of the following is not a consideration when determining the financial responsibility of a licensee? Net worth Surety bond or state fund Credit score Felony convictions of company officers
FELONY CONVICTIONS OF COMPANY OFFICERS While felony convictions are certainly a consideration in determining license eligibility, it is not considered in determining financial responsibility.
An upfront mortgage insurance premium is required for _____ loans, and borrowers can pay this amount directly or finance the cost. VA USDA FHA Conventional
FHA UFMIP is required for FHA loans, and borrowers can add this cost to the loan amount.
The first step in the closing process is: Rescission Funding Application Steering
FUNDING The first step in the closing process is funding. This occurs when the lender wires funds to the title company or closing attorney. Once the closing has occurred, the title company is authorized to release funds to the parties (disbursement). Depending on state law and the type of transaction, disbursement could occur at closing or several days later.
Which of the following is true regarding acceptable sources for down payment? All gifts may be used, regardless of source Gifts from relatives are permitted Gifts from the seller are permitted No gifts may be used, regardless of source
GIFTS FROM RELATIVES ARE PERMITTED Acceptable sources for down payment include gifts from relatives and gifts from domestic partners (although Fannie Mae and Freddie Mac require a 12-month relationship history). Gifts from the seller are not an acceptable source of down payment.
In the event that a real estate agent is also permitted to serve as the broker on a transaction, the person with the dual role must: Limit earnings to just 1% from the loan Give the borrower/consumer full disclosure of the relationship Give the borrower a 10% discount on the cost of the loan Only share the borrower's information with unaffiliated third parties
GIVE THE BORROWER/CONSUMER FULL DISCLOSURE OF THE RELATIONSHIP In states where it is allowable for a real estate licensee to also act as the mortgage originator, the borrower must be made fully aware of the relationship and advise consumers of the potential conflict of interest.
Before engaging in a refinance transaction, consumers and mortgage professionals should consider whether the transaction: Is for a qualified mortgage Has a tangible net benefit to the loan originator Has a tangible net benefit to the borrower Will reach closing in time for the borrower to use the funds as he or she wishes
HAS A TANGIBLE NET BENEFIT TO THE BORROWER Before engaging in a refinance transaction, consumers and mortgage professionals should consider whether the transaction has a tangible net benefit to the borrower.
If a borrower sells personal property in order to raise money for down payment, and the underwriter questions whether the value of the items sold is realistic, the underwriter may: Deny the loan until another source of down payment can be identified Take the item in trade for cash value Have an appraisal done on the item, or ask for further documentation Add the value in question to the loan amount if further documentation cannot be provided
HAVE AN APPRAISAL DONE ON THE ITEMS, OR ASK FOR FURTHER DOCUMENTATION The underwriter will ask to see documentation if the value of personal property being sold is called into question. This may include an appraisal of the property, and/or some further documentation.
A covered loan under HOEPA is commonly known as a: Non-prime Non-conventional Low-cost, high-fee High-cost mortgage
HIGH-COST MORTGAGE Section 32 of the Truth-in-Lending Act contains information and provisions with regard to high-cost mortgage loans. These loans are identified by APR, points and fees, and/or prepayment penalties that meet or exceed thresholds set to a level deemed excessive.
Qualifying ratios consist of which two separate calculations? Housing expense ratio and total debt ratio Loan-to-value ratio and qualifying income ratio Loan-to-value ratio and housing expense ratio Total debt ratio and qualifying income ratio
HOUSING EXPENSE RATION AND TOTAL DEBT RATION Qualifying ratios consist of the housing expense ratio and the total debt ratio.
Before accepting a loan that is a high-cost mortgage, borrowers must complete counseling with a counselor approved by: CFPB HUD FTC HOEPA
HUD Before accepting a loan that is a high-cost mortgage, borrowers must complete counseling with a counselor approved by HUD.
According to the federal guidances on nontraditional lending, all of the following loan programs are considered to be nontraditional, except: Interest-only Payment-option ARM Hybrid ARM Stated income
HYBRID ARM The term "nontraditional" primarily refers to payment structure or qualification documentation. In other words, traditional loans will include a payment structure that regularly decreases the principal balance and will require a borrower to prove that he/she can pay off the loan to qualify.
Which of the following is a limit on the amount that the interest rate can change, up or down, on any adjustment date? Initial rate cap Periodic rate cap Lifetime rate cap Payment cap
PERIODIC RATE CAP The periodic rate cap is a limit on the amount by which the interest rate can change, up or down, on any adjustment date.
The Qualified Mortgage Rule applies to which of the following? Bridge loans of 12 months or less Open-end home equity loans Reverse mortgages Loans secured by non-owner-occupied homes
LOANS SECURED BY NON-OWNER-OCCUPIED HOMES The Qualified Mortgage Rule applies to a broad range of loans including those secured by second homes or investment properties, but does not apply to open-end home equity loans, bridge loans of 12 months or less, reverse mortgages, or mortgages for timeshares.
In order to comply with the advertising rules found in Regulation Z, creditors that advertise rates and payments for mortgages must: Make the required disclosures with equal prominence and in close proximity to the advertised rates or payments Use model forms Follow the rules for formatting advertisements that the CFPB prescribes Disclose all of the terms for the mortgage loan that the creditor is advertising
MAKE THE REQUIRED DISCLOSURES WITH EQUAL PROMINENCE AND IN CLOSE PROXIMITY TO THE ADVERTISED RATES OR PAYMENTS n order to comply with the advertising rules found in Regulation Z, creditors that advertise rates and payments for mortgages must make the required disclosures with equal prominence and in close proximity to the advertised rates or payments.
Which of the following documents connects the promissory note to the collateral? Note Commitment letter Mortgage Broker agreement
MORTGAGE A mortgage connects the promissory note (the borrower's promise to pay) with the collateral.
This is defined as the intentional perversion of the truth for the purpose of inducing another person or entity to rely on it in order to part with something or surrender a legal right. Mortgage fraud Industry insider fraud Identity theft Predatory lending
MORTGAGE FRAUD Mortgage fraud is defined as the intentional perversion of the truth for the purpose of inducing another person or entity to rely on it in order to part with something or surrender a legal right.
Misrepresenting information or intentionally not disclosing material facts necessary for an originator to consider for loan approval is: Negligence Legal and unethical Mortgage fraud Redlining
MORTGAGE FRAUD The intentional misrepresentation of material information needed for underwriting approval is considered mortgage fraud.
"MBS" stands for: Mortgage borrowing standards Mortgage balance subordination Mortgage beneficiary securitization Mortgage-backed securities
MORTGAGE-BACKED SECURITIES In the secondary mortgage market, mortgage-backed securities are an investment vehicle in which expected payment streams from mortgage loans make up the profit paid out to investors. MBSs are a product of the secondary market.
When a creditor revises a Loan Estimate, it must deliver the revised disclosure to the loan applicant: No later than seven business days prior to consummation On the same date that it delivers a Closing Disclosure No later than four business days prior to consummation At the same time that the revisions are made
NO LATER THAN FOR BUSINESS DAYS PRIOR TO CONSUMMATION When a creditor revises a Loan Estimate, it must deliver the revised disclosure to the applicant no later than four business days prior to consummation.
Frank Stein is a loan originator for a county housing finance agency whose function is to help meet the affordable housing needs of the residents of the state. Is Frank required to be licensed under the S.A.F.E. Act? He is not required to be licensed if he is registered Yes, all loan originators must be licensed He must be licensed only if he represents he can and will perform the services of a mortgage loan originator No, he is exempt from the requirement to be licensed
NO, HE IS EXEMPT FROM THE REQUIREMENT TO BE LICENSED A state is not required to license an individual who is an employee of a federal, state, or local government agency or housing finance agency who acts as a loan originator in the course of his/her employment.
The GLB Act gives loan applicants the ability to opt out of the sharing of their nonpublic personal information with: Third-party settlement service providers Affiliates of the creditor Affiliates and nonaffiliates of the creditor Nonaffiliates of the creditor
NONAFFILIATES OF THE CREDITOR Loan applicants may opt out of the sharing of their nonpublic personal information with nonaffiliates.
Pamela has taken the NMLS-approved licensing test for the second time and received a score of 74%. What is the result of Pamela's attempt? Pamela has earned a passing score Pamela's score is close enough to the required score that she can ask for exemption from testing again Pamela has failed the test and must wait at least 30 days before retaking it Pamela has failed the test again and must wait at least six months before taking it
PAMELA HAS FAILED THE TEST AND MUST WAIT AT LEAST 30 DAYS BEBORE RETAKING IT An applicant for a loan originator license must pass the examination with a score of at least 75%. If the applicant fails the test, he/she may take it two additional times, if necessary, with at least 30 days between each attempt. After failing three consecutive tests, however, the applicant must wait at least six months before taking the test again.
A scenario in which a person forces the sale of a home at a much lower value than its true worth, then resells the home at its true value, is known as: Property flopping Property flipping Short sale Air loan
PROPERTY FLOPPING A scenario in which a person forces the sale of a home at a much lower value than its true worth, then resells the home at its true value, is known as property flopping.
Servicers are required to respond to a _____ from a borrower within five days. Loan application Qualified written request Request for servicing transfer Notice of rescission
QUALIFIED WRITTEN REQUEST Servicers are required to respond to a qualified written request from a borrower within five days.
A balloon mortgage that includes a conditional refinance provision allows the borrower to: Request that the loan be refinanced and converted to a 30-year fixed-rate loan Rescind the transaction if the loan becomes too expensive Request modification of the terms of the loan when it reaches maturity Refinance the loan if he or she is in default
REQUEST MODIFICATION OF THE TERMS OF THE LOAN WHEN IT REACHES MATURITY A balloon mortgage that includes a conditional refinance provision allows the borrower to request modification of the terms of the loan when it reaches maturity.
Which legislation sets the disclosure requirements for the Affiliated Business Arrangement Disclosure? TILA RESPA ECOA HOEPA
RESPA RESPA determined that the Affiliated Business Arrangement Disclosure should be provided to the borrower at the time of referral to the affiliated third party.
Which of the following claims, if used in an advertisement, is not a violation of Regulation Z or the MAP Rule? Using images, such as American eagles and flags, to suggest that a loan is offered through a federal program Using language to suggest that the loan is from the borrower's current lender Stating that a borrower can take advantage of an opportunity to refinance an ARM with a fixed-rate loan Claiming that a borrower will not have to make mortgage loan payments anymore
STATING THAT A BORROWER CAN TAKE ADVANTAGE OF AN OPPORTUNITY TO REFINANCE A ARM WITH A FIXED-RATE LOAN Regulation Z and the Map Rule prohibit misleading practices. These prohibitions do not include advertising the availability of refinances from adjustable- to fixed-rate products, unless the ad includes misleading or inaccurate information in the benefits of a refinance.
A _____ is an individual who, in exchange for a fee, allows his or her qualifying information to be used on an application for a loan he or she has no intention of repaying. Straw seller Straw buyer Air loan Identity thief
STRAW BUYER A straw buyer is an individual who, in exchange for a fee, allows his or her qualifying information to be used on an application for a loan he or she has no intention of repaying.
The Comparisons table on the Loan Estimate provides all of the following information, except: The amount of loan costs paid in the first five years of the loan term The amount paid for private mortgage insurance before the LTV ratio reaches 78% The amount of principal paid in the first five years of the loan term The amount of total interest paid over the loan term
THE AMOUNT PAID FOR PRIVATE MORTGAGE INSURANCE BEFORE THE LTV RATIO REACHES 78% The comparisons table does not show the amount paid for PMI before the LTV ratios reaches 78%.
The URLA is also known as: The application The appraisal The 1004 4506-T
THE APPLICATION The URLA stands for "Uniform Residential Loan Application."
Which of the following is a lender unable to consider during the qualification process? The borrower is 65 years old The borrower has had several jobs in the last two years The borrower's credit score is 618 The assets of the borrower are in a retirement account
THE BORROWER IS 65 YEARS OLD According to ECOA, a lender may not consider a borrower's age for the purposes of credit qualification.
The Nationwide Multistate Licensing System and Registry was developed and is maintained by: The FHFA and CFPB The CSBS and AARMR The CFPB and CSBS The AARMR and CFPB
THE CSBS AND AARMR The Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) are the two organizations responsible for creating and implementing the NMLS.
A loss payee clause protects whom? The lender in the event the property is damaged by fire or other risks The borrower from losing all of his/her investment The lender in the event the borrower defaults on the loan The borrower by using mortgage insurance to offset interest rate adjustment
THE LENDER IN THE EVENT THE PROPERTY IS DAMAGED BY FIRE OR OTHER RISKS The loss payee clause in a hazard insurance policy protects the lender's investment in the event that the collateral is damaged by fire or other risks. This means that if there is a fire or other loss, the lender is paid first to cover its investment.
When a mortgage or deed of trust contains a power of sale clause: The lender can sell the home at its discretion A judge must enter an order of foreclosure before the home can be sold The lender may foreclose without first obtaining a court order The lender is made whole for losses by MIP
THE LENDER MAY FORECLOSE WITHOUT FIRST OBTAINING A COURT ORDER When a mortgage or deed of trust contains a power of sale clause, the lender is authorized to sell the property through foreclosure steps without having to obtain a court order first. This is known as a non-judicial foreclosure.
For ARMS characterized by figures like "3/1," "5/1," "7/1," or "10/1," the first number represents _____, and the second number represents _____. The start rate; the periodic cap The locked term; the adjustment frequency The initial cap; the periodic cap The locked term; the adjustment cap
THE LOCKED TERM; THE ADJUSTMENT FREQUENCY ARMS are often named for their features. In other words, a 3/1 ARM is locked for three years, and then adjusts annually each year thereafter. The first number represents the locked term and the second number represents the adjustment frequency.
Borrowers have the right to rescind a transaction in which a security interest is given in their primary residence until the later of midnight on the _____ business day following the consummation of the transaction or delivery of the required disclosures and rescission forms. Fifth Third Seventh Tenth
THIRD Borrowers have the right to rescind a transaction in which a security interest is given in their primary residence until the later of midnight on the third business day following the consummation of the transaction or delivery of the required disclosures and rescission forms.
Under the GLB Act, a customer relationship is established: As soon as a borrower inquires about a loan When the borrower's loan is funded Once the loan servicing begins Upon application
UPON APPLICATION Under the Gramm-Leach-Bliley Act, a customer relationship begins as soon as a borrower provides non-public personal information. For the purposes of mortgage lending, this happens at application.
Which of the following inquiries is considered lawful when asked for the purposes of credit approval as governed by ECOA? Years on the job Race Marital status Age
YEARS ON THE JOB ECOA protects against discrimination in credit transactions. Asking how many years someone has been at their job is not considered discriminatory. It is a gauge of income stability.
In a transaction for a fixed-rate mortgage to finance a home purchase, the loan applicant should receive: The CHARM Booklet Your Home Loan Toolkit: A Step-by-Step Guide What You Should Know about Home Equity Lines of Credit The Consumer Handbook on Fixed-Rate Mortgages
YOUR HOME LOAN TOOLKIT: A STEP-BY-STEP GUIDE In a transaction for a fixed-rate mortgage to finance a home purchase, the loan applicant should receive Your Home Loan Toolkit: A Step-by-Step Guide.