3rd 115

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A borrower is placing a down payment of 15% on a 30-year FHA mortgage. How long will the borrower pay MIP

11 years

Per ECOA record retention rules, how many months should the information be maintained from the date the borrower was notified of credit action

25

For an FNMA, 90% fixed loan, the generally accepted qualifying ratios are what

28%/36%

According to TILA, a mortgage broker needs to provide the borrower with the LE within how many days of completed application if they are mailing it

3 business days

Mortgage fraud is investigated by the FBI and is punishable up to what amount of fine or prison time or both

30 years in fed prison or a $1 million fine or both

Karen and Daniel have decided to list their home for sale. They called on Randy the Realtor to come in and list the house. Randy has put together a proposal of a sale price for the home. He believes by looking at the three most recent sales of homes in the area, as well as those listed that the house should sell around $250,000. Randy's opinion of value was based off of

broker's price opinion

Which of the following assets may never be used for closing costs and down payment with FHA loans

cash advance on a credit card

Service release premium

compensation paid to represent the value of the servicing rights for a loan

The fair and accurate credit transactions act is overseen by who

consumer financial protection bureau

A discount point is BEST described as a charge the borrower pays to do what

decrease the rate on a mortgage loan below par

A sum of money given to bind the sale of real estate is

earnest money

A settlement agent must perform many tasks except

funding the mortgage loan

Which loan will never have mortgage insurance

A 100% LTV VA Loan

A borrower gives you their income and debt and asks what amount they qualify for. Assuming you have decided which loan program best fits their needs to calculate what loan amount they are able to repay you would need to know all of the following except

Amount of cash available to close

Which federal law regulates credit reporting agencies like Experian, Equifax, and Transunion and requires a creditor that denies credit to a borrower to provide access to a free credit report for denial

Fair Credit Reporting Act

Redlining is a violation of both

Fair housing act and ECOA

A borrower has a right to cancel certain transactions in writing by midnight of the third business day following the later of the consummation of the transaction or delivery of notice of the right to cancel. The cooling off period between closing and the time that funds are disbursed is called what

Right to recission

When David the loan originator begins working on Harold's loan app, he asks Harold for all long term debt. This allow David to use all of this information and include the proposed PITI payment to calculate

back end DTI

According to ECOA, if a group of borrowers wish to sue a lender through a class action lawsuit what is the max penalty

$500,000 or 1% of creditor's net worth, whichever is less

You've completed an application for a fixed-rate mortgage to a borrower. The LE must be re-disclosed during processing if the APR fluctuates by more than

1/8 of 1% (.125)

All of the following are exempt from RESPA, except

4-unit dwelling

The minimum age for a reverse mortgage applicant

62

A couple is purchasing a home that has a price of $215,000 and the appraised value of $200,000. They will take out a 1st mortgage in the amount of $150,000 and $50,000 for their 2nd mortgage. What is the LTV

75%

What would the CLTV be for a purchase price of $165,000 and the appraised value of $154,000. The buyer is applying for a 1st mortgage in the amount of $123,200 and the seller is providing a seller carryback loan in the amount of $15,400

90%

According to RESPA, which of the following payments are acceptable

A fee paid to someone equal to their percentage of ownership in the affiliated business

Which of the following would result in a violation of the CFPB's Reg X

A lender receiving funds from a settlement service provider for a business referral

Foreclosure is best defined as which of the following

A proceeding to distinguish all rights, title, and interest of the owners of a property in order to sell the property to satisfy a lien against it

According to the Safe Act, conducting which of the following activities would require the person to be licensed

Advising the borrower on interest rates

When a power of attorney is executed it creates a legal relationship between the person signing and their authorized agent. The authorized agent is also commonly referred to as which of the following?

Attorney-in-fact

What information is always found on a credit report

Borrower's name and address

A limit on how much the interest rate or monthly payment can change, either at each adjustment or during the life of the mortgage is

CAP

The fair housing act is an amendment to

Civil Rights Act of 1968

The Truth in Lending Act regulates which of the following disclosures

Closing disclosure, right to rescission and Charm booklet

A borrower wants to buy an investment property. He has a credit score of 700 and is a veteran. He is also looking to put as little down as possible. What type of loan should he use?

Conventional

HMDA was passed in Congress in response to public concern over what?

Credit shortages in certain urban neighborhoods

When a mortgage broker acts as an agent for a bank in connection with a mortgage loan, the bank may delegate to the broker the obligation to perform the requirements of the bank's CIP rule. CIP is

Customer identification program

Donald contacts Mega Mortgage, a non-depository lender, regarding a refinance of the property he has lived in for the past 7 years. During the app process, Donald informs the MLO that he is not the borrower or co-signer on the current mortgage, but that he has been making payments on the mortgage for the past 7 years on behalf of his elderly mother and wishes to be added to the new loan and the title. When the MLO request to speak with Donald's mother, Donald mentions that his mother is not physically or mentally capable of participating in the refinance. What should the MLO do?

Determine whether or not Donald has valid authority to continue with the loan

A clause in a mortgage that states that if a mortgagor sells, transfers, or in any way encumbrances the property then the mortgagee has the right to implement a clause making the balance of the obligation due. Which is

Due on Sale Clause

The scope of which regulation is to ensure that various financial institutions and other firms engaged in the extensions of credit exercise their responsibility to make credit available with fairness, impartiality, and without discrimination based on the basis of sex or martial status?

ECOA

Two minority loan applicants were told it would take several hours and require the payment of an app fee upfront to determine if they would qualify for a home mortgage loan and more than likely they will end up not qualifying anyway. Which law is being violated?

ECOA

Which federal law ensured that each American has equal access to credit opportunities free from discrimination

ECOA

Which of the following is most correct

Each licensee must appear before the Bureau and give relevant testimony when summoned

Which imposes restrictions on lenders regarding the use of nonpublic personal information

Gramm-Leach-Bliley Act

Which initial disclosure does RESPA require the mortgage broker to provide to the borrower within 3 business days after the completed loan application, if mailed

Homeownership counseling organization list

A borrower has an adjustable rate mortgage with the first year P&I payment of $2,259. Eight years later the P&I payment is $2816. What best describes what happened

Index value increased

According to TILA finance charges can be which of the following

Interest + mortgage ins + prepaid finance charges

Why is the APR not the same as an interest rate?

It factors in the interest and other prepaid finance charges

John, a loan originator for ABC lending, delivered all the necessary initial disclosures to his client Mr. Thomas. The documents were delivered electronically and the expectation was for Mr. Thomas to e-sign his documents. Mr. Thomas was made aware of the hardware and software requirements prior to receiving the documents, but John's company made technology changes to this process prior to deliver of the documents. What must John do?

John must notify his client of any hardware or software requirements due to the technology change

The total interest percentage TIP is found on what two disclosures

LE and CD

What three federally required disclosures must be provided within 3 business days of a receipt of a loan application by a mortgage broker for a purchase money loan

LE, Homeownership counseling organization list, home loan toolkit

A lender making a secured loan for a real estate purchase is also known as

Mortgagee

The unpaid interest which is added to the mortgage principal in a loan where the principal balance increases rather than decreases because the mortgage payments do not cover the full amount of interest due. Which of the following best represents the preceding definition?

Negative amortization

When must a mortgage broker provide a notice of action take to an applicant

No later than 30 days after receipt of completed application for credit

In accordance with the guidelines of Fannie Mae, all of the following are considered security instruments except

Note

You have a client that has qualified for a 30-year fixed rate purchase money first lien mortgage on a secondary home. The client will be putting down $70k. Their loan amount will be $230k. A couple weeks before closing, it's determined the client requires a pest inspection, so you refer them to an affiliate. They ultimately decide not to choose this affiliate. Given this info, which disclosure will the client not get?

Notice of right to cancel PMI

Which of the following is not violation of RESPA

Payment for services actually rendered in an amount consistent with the reasonable value of such services

Which of the following best describes a lender rebate

Payment made by a lender when originating a loan with a higher than market interest rate which is used to offset costs for the borrower

Prepaid finance charges include all of the following EXCEPT

Pest inspection

What does the P stand for in PITI

Principal

Which of the following interactions with an appraiser would be considered appropriate

Providing the sales contract to help ensure the appraiser has pertinent information regarding the property

A residential mortgage loan is a loan for personal, family, or household use that is secured on a dwelling by a voluntary contract. Which of the following will not secure an interest in the property for a residential mortgage loan?

Sales contract

Which of the following is a Fannie Mae Function

Securitizing mortgage backed securities in the secondary market

Which of the following documents is always signed at a home purchase closing when a new loan is involved

Security instrument

Which federal law requires the mortgage broker to provide the borrower with a disclosure statement showing the total cost of the loan, including finance charges and the APR

TILA

How are the conforming loan limits set every year

The FHFA uses the october-to-october percentage increase/decrease in the avg housing prices in the Monthly Interest Rate Survey to adjust the conforming loan limits for the subsequent year

Interest accrues throughout the life of a mortgage loan. The entire amount of interest encompasses this concept best known as

The aggregate amount

Bob the broker has completed an application over the phone with Jane for a refinance on her primary home. During this process, Bob explained to Jane that she can sign the necessary documents in two different ways either on his protected website or in paper copies that he can mail to her immediately. Which law's provisions require that Bob make this disclosure?

The electronic signatures in Global and National Commerce Act

In almost all mortgage fraud, who becomes the injured party

The lender

Which of the following is Prohibited when making a loan agreement with a prospective borrower for the assistance in finding a mortgage loan

The loan agreement requires the payment of a finder's fee prior to the consummation of the loan

According to the record of retention rules of RESPA, which of the following statements is correct

The mortgage servicing disclosures statement must be retained for five years

Which of the following is NOT true regarding the state regulatory authority in relation to the Safe Act of 2008

The state authority may create laws to amend the Safe Act

Which of the following is true regarding the following statement in an advertisement: "Lowest rates available for all credit types"

This statement is considered a deceptive practice

what is the purpose of the surety bond?

To act as insurance to pay fines or penalties that the lender is not able to pay on their own

During the application process with a new client, Bob the broker is about to ask the client about income. Which of the following questions or statements are permissible under ECOA

To qualify you for the best loan possible, I need to know how much income you're planning on using, if any of it is related to child support or alimony, you don't need to let me know unless you're using it to qualify

The consumer credit protection act produced which act

Truth in Lending Act

Which of the following is true regarding USDA loans

USDA loans allow individuals to build a home

In which of the following situations can an MLO work with an unregistered or unlicensed mortgage broker or lender

Under no circumstances

Under what circumstances is an independently contracted loan processor or underwriter NOT required to obtain a mortgage loan originators license?

Under no circumstances

Fannie Mae 1003 is the form number for

Uniform Residential Loan Application (URLA)

What is the best way to describe an individual who acts completely as a volunteer when negotiating mortgage loan terms?

Unlicensed mortgage loan originator

Certificate of Eligibility is required under what loan

VA

A mortgage processor's role includes which of the following?

Verifying information from the initial application

Eric is a broker who has had his own brokerage business for a couple years. In order to make sure he stays current on mortgage fraud trend, he routinely runs a self test within his company. Quality control measures are required by which following laws

all the above (GLBA,REG V and REG B)

The minimum down payment for FHA loans is 3.5% of the lesser of which

appraised value or purchase price

Under the Safe act who can deny, revoke, or suspend a MLO license

the state authority only

The two parties to a real estate transaction that can receive a title insurance policy are the purchaser and who

lender

Which of the following accurately portrays a LTV calculation

loan amount divided by the lesser of property value or sales price

A mortgage loan originator's NMLS number must be placed on which of the following types of advertisements and documents

loan applications, business cards and websites

Jim has obtained approval for financing through Layla's loan shop. Jim puts an offer on a home. The seller refuses the offer due to concerns with the lender's ability to close the loan by scheduled closing date. Which of the following laws is the seller violating

none of the choices from RESPA, ECOA, and FHA

A limit on the amount a payment can be changed at the end of each payment adjustment period. It can be a percentage of the previous payment, a fixed dollar amount, or a specified change in the interest rate of which the payment was calculated. It does not have to be the same as an interest rate cap. Which of the following terms best represents the preceding definition

payment cap

When a mortgage broker willfully misleads a borrower in order to increase their profit this is called

predatory lending

What is the best way to describe the act of helping a broker conduct business regarding taking applications without a mortgage originator license

prohibited

Lenders are not allowed to provide the appraiser with any of the following except

purchase contract

The person who prepares the closing disclosures and helps the borrower make sure they know what they are signing is known as who

settlement agent

Which of the following best describe an immediate family member

spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild, stepsibling, and adoptive relationship

According to TILA, if an advertisement for a specific loan states a payment amount, it also must include

term of the loan, finance charge, and number of payments

In accordance with ECOA, a creditor cannot inquire as to whether income is derived from public assistance unless what

the creditor discloses to the applicant that such income need not be revealed and the applicant wants public assistance income to be considered by the creditor as a basis for payment of credit requested

Which of the following is not true regarding the responsibilities of the state regulatory authority

the state authority can order a prison sentence upon a LO for compliance failure

When can the loan servicer charge for a loan escrow account statement

under no circumstances

When is the lender permitted to charge a fee for preparing a settlement statement

under no circumstances


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