Open C Review
Under the SAFE Act, mortgage loan originator applicants must have how many hours of prelicensing education?
20
The borrower is obtaining a loan to purchase a new home. Settlement is anticipated to occur 90 calendar days from the time the Loan Estimate is provided. The loan originator may provide the Loan Estimate with a disclosure that he may issue a revised Loan Estimate any time up until
60 calendar days prior to closing.
In order to discourage appraisal fraud caused by loan originator pressure, the Federal Housing Administration discourages flipping by determining that a property resold within __ days from the last sale is not eligible for FHA financing.
90
Which of the following is NOT true about the financial responsibility of a mortgage loan originator?
A mortgage loan originator must always have his own surety bond in an amount that reflects the dollar value of loans he originated in the previous year.
For purposes of mortgage licensing, all of the following are considered immediate family members, and therefore an individual may negotiate a mortgage loan on their behalf with being required to be licensed, EXCEPT
an aunt.
The Loan Estimate may be conveyed to a consumer
by mail.
The LTV is the
closed-end loan divided by the value
In terms of loan originator prelicense education
coursework may be provided by the license applicant�s prospective employer.
When a mortgage broker accepts a legitimate application and documents from a buyer and submits them to two lenders, it is called
double selling
In order to meet the annual continuing education requirement, a state-licensed loan originator must complete at least _____ hours of NMLS-reviewed and -approved coursework.
eight
The number one ethical problem cited in surveys of professionals and managers is
false or misleading representation of products or services in marketing, advertising or sales.
According to TILA's ATR Rule, in making a Qualified Mortgage (QM), required underwriting standards include calculation of monthly payments using the maximum interest rate that may apply during the loan's first ____ years.
five
A lock-in option in which the interest rate and points are frozen at some time after the application but before settlement is called
floating interest rate, floating points
The penal sum of a loan originator's required surety bond must be maintained
in an amount that reflects the dollar amount of loans originated.
he CLTV
is the sum of the closed-end loan and the draw divided by the value
If the loan amounts, maturity dates and interest rates 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.
A clause in the note that prohibits the borrower from prepaying the loan is the
lock-in clause
Under the SAFE Act, licensed loan originator responsibilities in regard to record keeping include all of the following EXCEPT
making all of the licensee's records available to borrowers upon demand
Due to the principal-agent problem, compared to borrowers who obtained loans through retail sources, borrowers of loans originated by brokers are
more likely to prepay faster.
Larry Bernard works as a loan originator for Bank of America. Larry
must submit fingerprints to the FBI and furnish to the NMLS a credit report and information on any administrative proceeding in which he has been involved.
If a consumer pays more at consummation than what was disclosed in the Loan Estimate and the amounts exceed the tolerances allowed by law, the creditor must
refund the excess within 60 calendar days of consummation.
A prepayment penalty that applies only to refinancing is called a ____ prepay penalty.
soft
The ARM index based on the interest expenses on savings deposits reported by member savings banks in the Federal Home Loan Bank System's 11th District is
the COFI
The Real Estate Settlement Procedures Act is administered by
the Consumer Financial Protection Bureau.
In the loan origination process, it is prohibited to misrepresent a consumer�s potential for default with regards to any particular loan product. This prohibition is found in
the MAPs Rule.
In the calculation of an applicant's income, a capital gain can be considered if
the borrower owns additional capital assets
In a loan transaction involving a mortgage broker
the lender is responsible for ascertaining whether the Loan Estimate has been provided.
A loan secured by vacant or unimproved property is covered under RESPA only if
the loan proceeds will be used to construct or place a structure or a manufactured home on the real property within two years from the date of the settlement of the loan.
In a mortgage transaction subject to RESPA that is secured by the consumer's dwelling, a Loan Estimate must be delivered or mailed within three business days after receipt of a written application and no later than
the seventh business day before the transaction is consummated.
A mortgage loan may not be consummated less than ____________ after the borrower has received the Closing Disclosure.
three business days
The TLTV
total loan-to-value ratio) is the sum of the HELOC limit and the closed-end loan divided by the value and has to be higher than the other ratios.
When secondary financing for a mortgage loan is a HELOC, the loan balance plus the total line limit is used to calculate the LTV.
HCLTV.
A homeowner has a home worth $220,000. He has an outstanding loan of $165,000, and a HELOC with a limit of $30,000, on which he has drawn $12,000. Which of the following is NOT true?
His TLTV is 94%
A seven-year ARM has interest rate caps of 4/2/5. Which of the following is true?
If changes are annual, the interest rate cannot increase by more than 2% in any year.
Real Estate Settlement Procedures Act (RESPA)
RESPA seeks to: require effective advance disclosure of costs; eliminate kickbacks and referral fees; limit amounts held in escrow or reserve accounts; and reform recordkeeping of local land title information.
RESPA does not require lender disclosures of closing costs and procedures for which of the following home loans?
Temporary construction loans
In Regulation X, the term "loan originator" applies to
a mortgage broker or mortgage lender.
What is used to permanently identify a loan originator?
Unique identifier