Loan officer study
In order for the APR to be within the required tolerance, it must be within ____ of one percent on regular transactions and within ___ of one percent on irregular transactions (ARMs) A) 1/8% / 1/4% B) 1/4% / 1/2% C) 1/2% / 3/4% D) 3/4% / 1.00%
A) 1/8% / 1/4%
A construction loan is subject to RESPA if the term of the loan is in excess of ____ years. A) 2 B) 3 C) 4 D) 5
A) 2
At the time of settlement, the lender may collect no more that an additional ____ extra months' escrow items as a cushion: A) 2 B) 3 C) 4 D) 5
A) 2
In any transaction that is subject to the right of rescission, lender must provide each consumer who has right to rescind ______ copies of the Notice of Right to Cancel and give the consumer the right to rescind the transaction within ____ business days from the date of consummation of the transaction: A) 2/3 B) 3/4 C) 4/5 D) 5/6
A) 2/3
Under RESPA, the Loan Estimate must provided to the borrowers within __ business days of application A) 3 B) 5 C) 7 D) 10
A) 3
If borrowers exercise their right to rescind, the following must be refunded to the borrowers: A) All costs charge to the borrower, including the appraisal and credit report fee B) All costs charged to the borrower, except the appraisal and credit report fee C) All closing costs charged to the borrower, but not prepaids. D) All costs charge to the borrower except the processing fee, origination fee, and underwriting fee
A) All costs charge to the borrower, including the appraisal and credit report fee
The right of rescission under Reg. Z is the right to: A) Cancel a contract B) Forfeit interest C) Pay discount points D) Practice usury
A) Cancel a contract
When preparing the closing disclosure, under which "Loan Cost" category should the appraisal be listed? A) Category B, Services the Borrower did not shop for B) Category A, Origination Charges C) Category D, Total Loan Costs D) Category C, Service the Borrower Did Shop For
A) Category B, Services the Borrower did not shop for
If a person who has more than a 1% ownership interest in a provider of mortgage or settlement services refers business to that provider, it is called a: A) Controlled Business Arrangement B) Affiliate Arrangement C) Co-Broker Arrangement D) None of the above
A) Controlled Business Arrangement
The RESPA Reform Act prohibits lenders and brokers from charging any fees to the borrower for preparation of the Loan Estimate except one fee: A) Credit report B) Appraisal C) Application fee D) Origination fee
A) Credit report
Fees quoted on the Loan Estimate may not change within the number of days the lender must guarantee them except: A) Fees that may change when the interest rate is locked in B) Loan origination fee C) Processing fee D) Underwriting fee
A) Fees that may change when the interest rate is locked in
In the mortgage transaction, which of the following is the best example of a Finance Charge? A) Interest Paid B) Appraisal fee C) Application Fee D) Escrows
A) Interest Paid
A gradual increase in the mortgage debt that occurs when the monthly installment is not sufficient for full application to both principal and interest is called? A) Negative Amortization B) Deferred Amortization C) Interest Shortage D) Interest Only
A) Negative Amortization
Truth-in-Lending requirements apply only consumer credit extended primarily for: A) Personal, Family, or Household purposes B) Business purposes C) Commercial loans D) All of the above
A) Personal, Family, or Household purposes
When determining if a mortgage has payment priority, the primary determinant is the order of recording. Which of the following liens always has priority over a mortgage? A) Property taxes on the subject B) An IRS lien C) A mechanics lien D) An alien lien
A) Property taxes on the subject
The collection for an investor of monthly payments of principle, interest, and escrows, plus operational procedures covering accounting, bookkeeping, paying of insurance and property taxes is called: A) Servicing B) Payment Collection C) Mortgage Collection D) Production Oversight
A) Servicing
If a fee is charge for these services, it must be paid by: A) The borrower B) The lender C) The Realtor or builder D) Any of the above
A) The borrower
The APR is calculated based on those fees: A) The borrower pays and the lender get (not a third party) B) Any fee the borrower or seller pays and the attorney gets (not a third party) C) Any fee the borrower or seller pays, regardless of who collects the fee D) Any fee the borrower pays that is not tax deductible
A) The borrower pays and the lender get (not a third party)
The main activity of FHA is: A) The insuring of residential loans by private lenders B) The origination and funding of loans backed by the government C) Providing funds to leaders to make loans to low-to-moderate income borrowers D) Providing funds for residential loans for borrowers who cannot qualify for any other loan.
A) The insuring of residential loans by private lenders
When appraising a single-family dwelling, the primary determinant in the appraiser's opinion of value is most often which value approach? A) The sales comparison approach B) The Income Approach C) The cost approach D) The Automated Valuation Model
A) The sales comparison approach
Match the correct implementing regulation and law A) Truth in Lending Act - Regulation Z B) Real Estate Settlement Practices Act - Regulation X C) Equal Credit Opposition Act - Regulation B D) Consumer Action Regulation Policy - Regulation W
A) Truth in Lending Act - Regulation Z
A deed in which the grantor or seller warrants or guarantees that good title is being conveyed is called a: A) Warranty Deed B) Quit Claim Deed C) Security Trust Deed D) Note
A) Warranty Deed
The ECOA prohibits disparate treatment. Which of the following best describes disparate treatment as defined by ECOA and its implementing Regulation B? A) When a creditor imposes additional documentation requirements on public assistance recipients not imposed on other applicants. B) When a creditor declines an application due to unverifiable income C) When a creditor fails to provide material disclosures in the native language of an applicant. D) When a creditor fails to provide sensitivity training for origination personnel
A) When a creditor imposes additional documentation requirements on public assistance recipients not imposed on other applicants
A borrower earns $600 per week based on a 40-hour work week. He receives time and a half for overtime and averages 3 hours of overtime per week. What is his monthly gross earnings? A) $2,795.00 B) $2,892.50 C) $2,600.00 D) $2,938.50
B) $2,892.50
Special flood hazard Area refers to any property with a _____ year flood boundary A) 50 years B) 100 years C) 150 years D) 200 years
B) 100 years
In the Sales Comparison Analysis section of the of the appraisal, the net adjustment for any comparable should not exceed: A) 10% B) 15% C) 25% D) 30%
B) 15%
Fannie Mae guidelines limit the maximum seller contribution on a 95% LTV to: A) 2% of the sales price B) 3% of the sales price C) 5% of the sales price D) 6% of the sales price
B) 3% of the sales price
TILA, along with RESPA, requires that the Loan Estimate be provided no later than _____ business days after application and at least ______ business days before consummation (closing): A) 2/5 B) 3/7 C) 5/10 D) 10/20
B) 3/7
Under ECOA, a notice of credit denial must be sent within ___ calendar days of receiving a completed application that the creditor denies: A) 10 B) 30 C) 45 D) 60
B) 30
Under the SAFE Act, loan originators who do not pass the test must wait _____ days from the preceding test to retake the test: A) 15 days B) 30 days C) 45 days D) 60 days
B) 30 days
Under the SAFE Act, license renewals for loan originators require satisfying _____ hours of continuing education each year: A) 4 hours B) 8 hours C) 10 hours D) 12 hours
B) 8 hours
A property is appraised for $268,900. The borrowers wish to refinance and pay off a first mortgage of $237,010 and a second mortgage of $18,463. What is the current LTV on the first mortgage and CLTV on the first and second mortgage? A) 91.03% LTV/97.84% CLTV B) 88.14% LTV/95.01% CLTV C) 83.76% LTV/94.23% CLTV D) 92.86% LTV/98.05% CLTV
B) 88.14% LTV/95.01% CLTV
An Arm loan on which the interest rate adjusts monthly and the payment adjusts annually is referred to as: A) A hybrid ARM B) A payment option ARM C) A 2-1 ARM D) A 5/1 ARM
B) A payment option ARM
In any situation in which the lender is quoting interest rates to consumer, whether verbally or in written advertisements, the lender must also quote the: A) Finace Charge B) APR C) Settlement Costs D) All of the above
B) APR
When a loan goes into default, the entire principal balance becomes due and payable under a common provision of a mortgage and note, called: A) Notice of Late Payment B) Acceleration Clause C) Notice of Default D) Foreclosure
B) Acceleration Clause
According to RESPA, an Affiliated Business Arrangement Disclosure must be provided: A) At the time of application, even if there are no AFBAs B) At or prior to the time a referral is made C) Within 3 days of settlement, even if there are no AFBAs D) Never. RESPA does not require this disclosure
B) At or prior to the time a referral is made
On the Uniform Residential Appraisal Report, "bracketing" refers to: A) Choosing comparables that are all above the sales price of the subject property B) Choosing comparables that are both above and below the sales price of the subject property C) Choosing comparables that are all below the sales price of the subject property D) Choosing neighborhoods that are close to the subject property
B) Choosing comparables that are both above and below the sales price of the subject property
Loan origination programs located in the offices of Realtors or builders, in which borrowers pay a fee to participate to gain access to loan information and possibly to obtain loan commitments on behalf of the borrowers are called? A) Realtor Homebuyers Financing Programs B) Computer Loan Origination (CLO) Programs C) Mortgage Loan Assistance Programs D) All of the above
B) Computer Loan Origination (CLO) Programs
The Dodd-Frank Wall Street Reform and consumer Protection Act created an independent federal agency that holds primary responsibility for regulating consumer protection with regard to financial products and services in the United States. This Agency is known as: A) Fair Trade and Credit Commission B) Consumer Financial Protection Bureau C) Consumer Protection Agency D) Economic Recovery Agency
B) Consumer Financial Protection Bureau
Under ECOA, if a loan is not made substantially in the term and conditions originally quoted, the lender must provide a form called a: A) Notice of Change B) Counteroffer C) Notice of Incompleteness D) ECOA notice
B) Counteroffer
The closing disclosure must be provided to the consumer three business days before consummation. It is not unusual for there to be many changes to the CD before closing. Which of the follwing changes to a closing disclosure would automatically trigger a new three-day waiting? A) Undated zero tolerance charges, APR still within tolerance B) Creditor adds a 1% prepayment penalty to the loan C)Homeowner association fees are double what was quoted to the consumer D) The charge for borrower shopped title insurance increases 20% due to a special endorsement required by the consumer
B) Creditor adds a 1% prepayment penalty to the loan
The Fair and Accurate Credit Transactions Act Safeguard Rule Requires institution to: A) Develop a plan of action in the event of a terrorist attack B) Develop a written identity theft policy C) Destroy all borrower personal information after closing D) Provide accurate credit report information
B) Develop a written identity theft policy
In determining qualifying ratios, to determine the total monthly obligations-to-income ratio: A) Divide the proposed principal and interest plus monthly consumer debts by gross monthly income B) Divide the proposed housing payment, plus monthly installment debts extending beyond 10 months, plus monthly charge card payments, alimony and child support by gross monthly income C) Divide the unpaid balance on consumer debts by net take-home pay D) Divide the loan amount by gross monthly income
B) Divide the proposed housing payment, plus monthly installment debts extending beyond 10 months, plus monthly charge card payments, alimony and child support by gross monthly income
The Telephone Consumer Protection Act created a registry of telephone numbers that solicitors may not call, referred to as the: A) Consumer protection list B) Do Not Call Registry C) Limited Denial of Participation Registry D) Registry of Debarred Consumer
B) Do Not Call Registry
Before the congress passed laws establishing the FHA, mortgage financing was very different from what is it today. Which of the following were characteristic of mortgage loans prior to the FHA? A) Fully Amortizing 30 year loan B) Five Year Balloon Payment C) 90% Loan to Value D) Private Mortgage Insurance
B) Five year Balloon Payment
The Act implemented by Regulation C that requires most lenders to report data about originations, applications, and purchased loan, including race, national origin, gender, and income, is known as the: A) Home Equity Protection Act B) Home Mortgage Disclosure Act C) Homeowners PMI Protection Act D) Homeowners Identity Theft Act
B) Home Mortgage Disclosure Act
In selecting comparables for appraisal purposes: A) It is better to use comparables that are farther away but more comparable to the subject. B) It is better to use comparables that are closer to the subject property but less similar. C) Either A. or B. D) None of the above
B) It is better to use comparables that are closer to the subject property but less similar.
An equal undivided ownership of property by two or more persons, the survivors to take the interest upon the death on one of them is called: A) Tenancy in Common B) Joint Tenancy with right of survivorship C) Interest Shortage D) A Will
B) Joint Tenancy with right of survivorship
The Gramm-Leach-Bliley Act is a consumer protection act and is an " ______" law that prohibits a mortgage lender or broker from sharing a client's non-public personal information if the client chooses not to have this information shared: A) Opt-in B) Opt-out C) Non-compete D) Non-public
B) Opt-out
The Loan Estimate must be provided to the consumer within three business days of application. What statement best describes a business day under this regime? A) A business day is any day the loan officer works B) Regulation X business day definition applies to the LE, Regulation Z business day definition C) A business day is always Monday - Friday, never more, never less D) Everyday except Sunday and most Federal Holidays
B) Regulation X business day definition applies to the LE, Regulation Z business day definition
Which of the following statements regarding laws and regulations is most true? A) Congress creates law, and then regulation amend the law by regulation B) Regulators implement the law through regulation C) Regulations are superior to laws and in effect supersede federal law D) The law is always subject to amendments through the action or regulators
B) Regulators implement the law through regulation
An unorganized market where mortgages are bought and sold is called the: A) Federal National Mortgage Association B) Secondary Mortgage Market C) Federal Financial Council D) Mortgage Wholesale Division
B) Secondary Mortgage Market
When assessing tangible net benefit to the borrower, What or how is tangible net benefit measured? A) There can be no more than 3% in loan costs B) That the defined benefits are worth the costs of refinancing C) That the borrower can "see" the benefit D) Tangible Net Benefit is a state of mind and is completely subjective
B) That the defined benefits are worth the costs of refinancing
Under ECOA, an inquiry becomes an application when: A) The lender discusses interest rates B) The inquirer provides personal financial information C) The lender discusses loan program and monthly payments. D) the lender locks in an interest rate.
B) The inquirer provides personal financial information
Under RESPA anti-kickback rules, a mortgage company may pay a Realtor to rent a desk, copy machine, and phone line in the Realtor's office if: A) The mortgage company notifies the State Banking and finance Department B) The mortgage company pays fair market value for rent C) The Realtor does not charge for the rental D) Mortgage companies are prohibited from renting space in a Realtor's office
B) The mortgage company pays fair market value for rent
In the event that a Loan Estimate is revised, the reason for the revision must be documented. The records for this change must be retained for no less than ___ years after settlement. A) Two B) Three C) Four D) Five
B) Three
A borrower is refinancing his mortgage. The length of the rescission period is: A) Three business days excluding Saturday, Sunday, and national holidays B) Three business days including Saturday, excluding Sunday and national holiday C) Three business days including Saturday and Sunday, excluding national holidays D) Five business days including Saturday, excluding Sunday and national holidays
B) Three business days including Saturday, excluding Sunday and national holiday
An examination of public records laws and court decision to disclose the past and current facts regarding ownership of real estate is called a: A) Public Records Accounting B) Title Examination C) Personal Property Review D) Survey
B) Title Examination
Under the "Information for Government Monitoring Purposes" section of the loan application, if the borrowers check the box indicating that they do not wish to complete the information relating to their ethnicity, race, and sex: A) You are leave the boxes blank B) You are to fill in the boxes based on visual observation and surename C) You explain that the application cannot be approved if they do not complete the information D) you ask to see their driver's license
B) You are to fill in the boxes based on visual observation and surename
If a property is appraised for $379,000 and borrowers wish to finance an 80% first mortgage and a 10% second mortgage, what would the respective loan amount be? A) $360,050/$56,850 B) $341,100/$37,900 C) $303,200/$37,900 D) $303,200/$18,950
C) $303,200/$37,900
Fees quoted on the Loan Estimate must be guaranteed for ___ business days from the date the Loan Estimate is issued A) 3 B) 5 C) 10 D) 30
C) 10
On a VA purchase transaction, the veteran must pay a funding fee in the amount of: A) 1.95% B) 2.00% C) 2.15% D) 2.50%
C) 2.15%
In the Sales Comparison Analysis section of the of the appraisal, the gross adjustment for any one comparable should not exceed: A) 10% B) 15% C) 25% D) 30%
C) 25%
The entity which conducts the settlement must provide the Closing Disclosure at least __ days prior to closing. A) 1 B) 2 C) 3 D) 4
C) 3
In the Cost Approach section of the appraisal, the estimated site value should not exceed ____% without a satisfactory explanation: A) 15% of appraised value B) 25% of the appraised value C) 30% of the appraised value D) 35% of the appraised value
C) 30% of the appraised value
HOPEA allows late fees which are restricted to: A) 3% of the past due payment B) 3% of the current unpaid balance C) 4% of the past due payment D) 4% of the current unpaid balance
C) 4% of the past due payment
The homeowners Protection Act also grants the borrower the right to have the PMI automatically terminate when the loan-to-value reaches _____% if the payments are current: A) 50% B) 65% C) 78% D) 80%
C) 78%
The maximum LTV on FHA purchase transactions is: A) 95% B) 97.75% C) 96.5% D) 98%
C) 96.5%
The Fair Housing Act describes discriminatory effect as following: A) Discriminatory effect pertains to the practice of using overly strict underwriting requirements B) The practice of using credit scores to approve loans C) A practice has a discriminatory effect where it actually or predictably results in a disparate impact on the group of persons D) A practice is discriminatory if a lender chooses to originate loans in only one state
C) A practice has a discriminatory effect where it actually or predictably results in a disparate impact on the group of persons
The Fair Credit Reporting Act restricts the use of credit information in the extension of credit. What is a prohibited use of credit information when acting as a creditor? A) Adverse action due to too many available credit B) Adverse action due to a history of delinquent accounts C) Adverse action due medical condition D) Adverse action due to number of inquiries
C) Adverse action due medical condition
Which fee shown below does not affect the APR? A) Loan origination fee B) Discount points C) Appraisal fee D) Tax service fee
C) Appraisal fee
On adjustable rate mortgages (ARMs), the lender must provide the borrower with a booklet referred to as the _________ Booklet: A) APR Booklet B) ARM Booklet C) CHARM Booklet D) Prepaid Finance Charges Booklet
C) CHARM Booklet
Fees initially quoted on the Loan Estimate may not increase unless the reason may be attributed to what is referred to as a: A) Notice of fee increase B) Revised Loan Estimate C) Change Circumstances D) Fees may never increase after being quoted
C) Change Circumstances
Which transaction is exempt from RESPA? A) Refinance transaction B) 4-unit residential property C) Commercial property D) Mobile home
C) Commercial property
From an investor's standpoint, one very significant aspect of mortgage financing is the relative security of the investor's investment. Which of the following instruments establishes the investor's security? A) The promissory Note B) Deed of Trust C) The Deed of Mortgage D) The Co-signer
C) Deed of Trust
In determining qualifying ratios, to determine monthly housing expense-to-income ratios: A) Divide the proposed principal and interest by net take-home pay B) Divide the proposed loan amount by gross monthly income C) Divide the proposed housing payment by gross monthly income D) Divide the sales price by the proposed loan amount
C) Divide the proposed housing payment by gross monthly income
The Dodd-Frank Wall Street Reform and Consumer Protection Act amended ECOA to require creditor to automatically send free copy of home appraisals and other written valuations promptly to consumers. This is referred to as the: A) Appraisal Reform Act B) Appraisal Disclosure and Delivery Requirements Rule C) ECOA Valuation Rule D) Valuation Retention Rule
C) ECOA Valuation Rule
What statement is true about Freddie Mac and Fannie Mae? A) Both were a division of Sallie Mae prior to being spun off in an IPO B) Neither entity is operating any longer since being seized by the US government in 2008 C) Fannie Mae is the larger of the two, combined they purchase the majority of non-government insured loans D) Both agencies were named after heroic women, notably Fannie Mae was named after the "Unsinkable Fannie Mae" of Titanic fame
C) Fannie Mae is the larger of the two, combined they purchase the majority of non-government insured loans
A consumer may waive the 3-business day Right of Rescission for following reason: A) Borrowers may never waive the rescission period B) If they agree in writing not to wait the prescribed number of days C) If they have a bona fide emergency D) If they have a Power of Attorney
C) If they have a bona fide emergency
The federal law requires that lenders make reasonable determination of a consumers "Ability to repay" when extending credit. What is NOT a factor in determining ability to repay? A) The consumer credit history B) The consumers stable monthly gross income C) Minimum property standards D) Child support obligation
C) Minimum property standards
How often must a servicing lender perform an escrow analysis to ensure that excess funds are not being kept? A) Once a month B) Once every six months C) Once a year D) Once every two years
C) Once a year
Regulation Z applies to: A) Business loans with collateral B) Commercial real estate loans C) Personal real estate credit transactions D) Real estate purchase transactions
C) Personal real estate credit transactions
Those fees listed on the Loan Estimate that affect the calculation of the APR are called: A) Private lender charges B) Personal finance charges C) Prepaid finance charges D) Primary borrower charges
C) Prepaid finance charges
A deed by which the grantor releases any interest in the property without attempting attempting to convey title or make many warranty of clear title to the property is called a: A) Transfer of Title B) Deed of Trust C) Quit Claim Deed D) Warranty Deed
C) Quit Claim Deed
Loans covered under The Home Ownership Equity Protection Act are referred to as: A) Hard Money Loans B) Home Equity Loans C) Section 32 Loans D) Jumbo Loans
C) Section 32 Loans
When a party agrees in writing that its claim on a property is inferior to the claim of another, this is called: A) Second Mortgage Agreement B) Unsecured Mortgage Agreement C) Subordination D) Lien Agreement
C) Subordination
Qualified Mortgage has different meanings and varied benefits to different stakeholders. For instance, to creditor, QM affords a compliance model and safe Harbor. Which of the following least summarizes the benefits of QM to consumers? A) The closing costs are limited B) There won't be toxic mortgage features like negative amortization C) The consumer is guaranteed to get a competitive price D) The consumer will not get financing they cannot afford
C) The consumer is guaranteed to get a competitive price
The CFPB was created by Title X of Dodd Frank. The CFPB is an Executive agency within what parts of the US government? A) Department of Financial Services B) The US treasury C) The Federal Reserve System D) The Federal Trade
C) The federal Reserve System
Under ECOA, if a borrower indicates marital status to be "Unmarried:" A) the lender is to request the borrower to specify "single," "widowed," or "divorced." B) The lender is to request the borrower to prove that they are unmarried C) The lender may never ask "Are you divorced?" D) None of the above
C) The lender may never ask "Are you divorced?"
Borrowers may not waive the waiting period from receipt of the closing disclosure until closing unless: A) they sign a statement waiving the waiting period B) They are notified by phone that some changes have been made to the TIL1 C) There is a bona fide, documented emergency D) the waiting period can never be waived
C) There is a bona fide, documented emergency
The Act that requires customers to be screened and matched on a regulation basis to a government-provided list of possible suspected terrorists, drug traffickers, money launderers and other criminals is known as the: A) FBI Most Wanted Act B) Internal Affairs Screening Act C) USA PATRIOT Act D) Suspected Terrorist Act
C) USA PATRIOT Act
The name of the document referred to as a "1003" is: A) Uniform Residential Appraisal Report B) Fannie Mae Cash flow Analysis Form C) Uniform Residential Loan Application D) Residential Mortgage Credit Report
C) Uniform Residential Loan Application
Credit extended to acquire rental property is considered a business-purpose loan and therefore exempt from Truth-in-Lending requirements if: A) It contains more than 2 housing units B) It contains more than 3 housing units C) it contains more than 4 housing units D) it contains more than 5 housing units
C) it contains more than 4 housing units
A borrower earned $81,653 in commissions in 2013 and $84,934 in commissions in 2014. His business expenses were $9,040 in 2013 and $11,302 in 2014. How much monthly commission income maybe used to qualify the borrower? A) $7,437 B) $6,994 C) $6,594 D) $6,094
D) $6,094
Written notification to the borrowers that the property is located in a special Flood Hazard Area, advising borrowers that must obtain flood hazard insurance must be provided at least _____ days in advance of loan closing: A) 3 days B) 5 days C) 7 days D) 10 days
D) 10 days
The LTV on USDA Rural Housing loans is: A) 95% B) 96.5% C) 97.75% D) 100%
D) 100%
Under the SAFE Act, if a loan originator's license lapses for ___ years, they must re-take the test A) 2 years B) 3 years C) 4 years D) 5 years
D) 5 years
Under the SAFE Act, loan originator who fail the test 3 times must wait _____ months to retake the test: A) 2 months B) 3 months C) 5 months D) 6 months
D) 6 months
Under the Fair Credit Reporting Act, a consumer may request a copy of his/her credit report free of charge if the request is made within _______ days of being denied a loan: A) 15 days B) 30 days C) 45 days D) 60 days
D) 60 days
Under the SAFE Act, loan originator must pass a written test with a minimum score of: A) 90% B) 85% C) 80% D) 75%
D) 75%
Private mortgage insurance is not required if the LTV is: A) 95% B) 90% C) 85% D) 80%
D) 80%
The Homeowners Protection Act governing cancellation of PMI grants the borrower the right to request cancellation of the PMI when the outstanding loan balance is first scheduled to reach _______% of the original value of the property or when it actually reaches that LTV due to actual payment being made. A) 50% B) 65% C) 78% D) 80%
D) 80%
Under ECOA, a written adverse action notice must be mailed within ___ calendar days of notifying the applicant of a counteroffer if the applicant does not expressly accept or use the credit offered: A) 30 B) 45 C) 60 D) 90
D) 90
Under the SAFE Act, an individual may not engage in the business of a loan originator without obtaining and maintaining registration as a: A) Registered loan originator B) State-licensed loan originator C) Independent contractor D) All of the above
D) All of the above
Which of the following is the truest statement regarding the use of bonus income for stable monthly gross income? A) As long as the borrower has received it, you can use it B) It is unnecessary to test bonus income provided the employer indicates it will be paid C) You cannot use bonus income owing the limitations set forth under Reg Z D) Bonus income is acceptable in calculating stable monthly gross income provided it has an acceptable history and is considered to continue.
D) Bonus income is acceptable in calculating stable monthly gross income provided it has an acceptable history and is considered to continue.
ECOA states that "adverse action" is officially deemed to taken when: A) The loan is denied B) The loan is not made substantially in the terms and conditions orginally quoted and accepted by the borrower C) The loan is transferred to another lender D) Both A. and B.
D) Both A. and B.
Under ECOA, an application is defined as: A) An oral request for an extension of credit that is made in accordance with procedures established by a creditor for the type of credit requested B) A written request for an extension of credit that is made in accordance with procedures established by a creditor for the type of credit requested C) Discussion of different interest rates and loan terms D) Both A. and B.
D) Both A. and B.
Under the ECOA, the lender cannot ask questions about the borrower's spouse on an application unless: A) The spouse will be contractually liable B) The applicant resides in a community property state C) The spouse is gainfully employed and generating a source of income D) Both A. and B.
D) Both A. and B.
Under the SAFE Act, loan originators may have been convicted of a felony: A) Within the past 5 years B) Within the past 7 years C) Any time predating application, if felony involved fraud, dishonesty, or a breach of trust, or money laundering D) Both B. and C.
D) Both B. and C
In what primary category does the FBI classify mortgage fraud? A) Fraud for equity B) Fraud for profit C) Fraud for housing D) Both B. and C.
D) Both B. and C.
The law that was created to fight against money laundering is known as the: A) Anti Drug Money Law B) Bank Secrecy Act C) Anti-Money Laundering Act D) Both B. and C.
D) Both B. and C.
On ARM loans, the LIBOR Index stands for: A) Limited Borrower Offered Rate B) Last Best Offered Rate C) Loan Interest Based Offered Rate D) London Interbank Offered Rate
D) London Interbank Offered Rate
In recent years, Qualified Mortgage has reshaped origination practices in many ways. Which of the following are not germane to Qualified Mortgage? A) Financing attributes like pre-payment penalty and balloon payment B) Underwriting standards such as ability to repay C) Consumer credit history D) Mortgage Originator qualifications and licensing
D) Mortgage Originator qualifications and licensing
What are the six pieces of information that when provided by a consumer to a creditor in the context of an application trigger disclosure requirements? A) Property Address, Estimate of Value, Name, Credit, Income, Length of Employment B) Property Address, Earning Potential, Name, Credit, Income, Length of Employment C) Prior Intent, Estimate of Value, Name, Credit, Income, Loan Amount D) Property Address, Estimate of Value, Name, Tax Payer ID, Income, Loan Amount
D) Property Address, Estimate of Value, Name, Tax Payer ID, Income, Loan Amount
Dodd Frank contains 16 titles. Which title is largely about about residential mortgage finance? A) TITLE I-- FINANCIAL STABILITY B) TITLE XI-- FEDERAL RESERVE SYSTEM PROVISIONS C) TITLE XII--IMPROVING ACCESS TO MAINSTREAM FINANCIAL INSTITUTIONS D) TITLE XIV-- MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT
D) TITLE XIV--MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT
A lender who wants the title insurer to be responsible for the agent's acts in connection with closing must separately contract with the title insurer for such additional protection. What type of documentation evidences this creditor protection A) The ALTA Short Form B) The ALTA Extended Coverage C) The Comprehensive Insurance D) The Closing Protection Letter
D) The Closing Protection Letter
Section 326 of what act requires that financial institutions have a program in place to positively identify customers when an account if opened? A) No Child Left Behind Act B) The Patrician Act C) The Vigilante Act D) The Patriot Act
D) The Patriot Act
RESPA's anti-kickback rule states that no person may give and no person may receive a fee or thing of value for rendering of a real estate service: A) Unless the fee is for a referral B) Unless the parties have written agreement C) Unless the parties don't tell anyone D) Unless a service is actually performed
D) Unless a service is actually performed
If errors were made in the calculations of the APR, or other errors were made on the Truth-in-lending Disclosures may exercise their right to rescind: A) Up to six (6) months from the date of settlement. B) Up to nine (9) months from the date of settlement C) Up to one (1) year from the date of settlement D) Up to three (3) years from the date of settlement
D) Up to three (3) years from the date of settlement
Under RESPA, the "Home Loan Toolkit" is not required on a: A) Refinance B) Second mortgage C) Home equity loan D) All of the above
D) all of the above
Dodd Frank is a very big law. What is one of the most significant consumer protections derived from the passage of Dodd Frank? A) to make it easier and faster to get mortgage financing B) to increase consumer rebates and sales C) to decrease annoying advertisements D) to protect consumers from abusive financial services practices
D) to protect consumers from abusive financial services practices.
TILA, along with RESPA, requires that a Loan Estimate and Closing Disclosure be provided if the property securing the loan will be owner-occupied for more than ____ days during the coming year: A. 90 B. 60 C. 30 D. 14
D. 14