115 #2
Sarah agrees to purchase a property for $210,000. It appraised for $207,000, and she is a getting an FHA Loan. What is the minimum amount of cash she will need to bring to the closing table if the seller was not willing to adjust the purchase price to match the appraised value?
$10,245 MLO Calculations - 207,000*3.5% = 7,245. 7,245 + 3,000 = 10,245
A borrower is purchasing a home using a Conventional Conforming loan. The purchase price is $200,000, and they are putting 20% down. The seller is contributing $12,000 in Seller's Concessions. How much will the down payment be in dollar form?
$40,000
When must the borrower receive the Closing Disclosure?
3 business days before consummation
If a borrower signs their promissory note and it states their initial rate 6%, what would their note rate be in the second year of a temporary buy down program?
6%
Homeowner's Insurance is:
A form of hazard insurance and is there to protect the collateral from damage
Which of the following BEST describes the role of the Conference of State Bank Supervisors?
A national organization that maintains the state banking system and state regulation of financial services The Conference of State Bank Supervisors (CSBS) is a national organization founded in 1902 to further advance the ideas and professionalism for state banking departments; it acts as the single voice to Congress for state banks and serves as a liaison between state and federal regulators.
The CFPB's Home Loan Toolkit is to be provided when?
At the earliest possible date - The Home Loan Tool kit per RESPA must be given to our borrower at the time of application or no later than 3 business days if it is mailed.
Although co-signers and co-borrowers are not entirely the same thing, a characteristic that is the same for both is which of the following?
Both must meet the qualifying criteria for loan being applied for
A mortgage lender/broker requires that the borrower sign a document at closing that states the mortgage lender/broker's policies and regulations. What does the law allow the mortgage lender/broker to do if the borrower forgets to sign the document?
Call the borrower and ask that they sign the document after closing
The VA will issue a specific certification on the appraisal on a subject property is completed. This will show the property's current market value based on the appraisal. This is known as what?
Certificate of Reasonable Value - Once the appraisal is complete, the VA will issue a Certificate of Reasonable Value (CRV) that shows the property's current market value based on the appraisal. The CRV does not include information regarding any defects associated with the property.
Which of the following BEST defines a HOEPA loan?
HOEPA/High Cost Loans/Section 32. High Cost loans can be open or closed end, fixed or ARM. Their points and fees need to exceed 5% of the total loan amount of $21,980 or more.
On the final page of the Closing Disclosure, a consumer will NOT be able to identify which of the following?
Interest Rate - Page Five is the final page of the CD. It contains four sections: Loan Calculations, Other Disclosures, Contact Information, and Confirm Receipt. You can find the finance charge, APR, and TIP on this page.
Which of the following is NOT an advantage of a VA loan?
It allows a borrower to have considerably lower prepayment penalties.
Bryan wants to take advantage of the low interest rates and refinance his home. Bryan is working with Hope Mortgage. The program that provides Bryan with the greatest tangible net benefit is an adjustable-rate mortgage. At application what disclosures must Bryan's MLO provide him?
Loan Estimate, Notice of Right to Receive a Credit Score, CHARM, Early ARM
"Amount Financed" is a dollar figure comprised of which of the following?
Loan amount minus prepaid finance charges
Which fee is NOT allowed to be charged to the borrower in an FHA loan?
Loan expediting fee
Suzanne is purchasing a home. She is getting a conventional, conforming mortgage. She has completed an application with her local lender. When Calculating Cash to Close on the Loan Estimate, which of the following may not be included?
Owner's Title Policy - Because the Owner's Title Policy is an optional policy it is not required to be included in the cash to close unless the owner is buying that insurance.
The Guidance identifies three main concepts where lenders should take extra consideration when underwriting. Which of the following is NOT one of those three?
Subordinate Liens - Subordinate Liens isn't one of the three main concepts where lenders should take extra consideration when underwriting.
If a veteran has previously used their entitlement and it has not been fully restored due to any number of circumstances, then which of the following is true?
The maximum guaranty amount available is decreased accordingly.
Which of the following is NOT true regarding the state regulatory authority in relation to the SAFE Act?
The state authority may amend the SAFE Act.
The conditions of the residential housing market is ever-changing and the values of the homes can rise or fall accordingly. Which of the following BEST describes a home or group of homes that are showing signs of appreciation?
The value of the home(s) are increasing in value.
The primary function of any State Authority is what?
To protect consumers
What is the purpose of having two purchase money loans close simultaneously at the same time when this produces a 100% CLTV for the borrower?
Typically the first mortgage is only 80% LTV, which allows a borrower to forego paying PMI
Which term below BEST fits within the definition of a mortgage?
Voluntary Lien - The borrower is choosing to use their home as collateral to complete the finance transaction
On the fourth page of the Closing Disclosure there are some loan disclosures for the loan that is being applied for. Which is NOT one of those disclosures found here?
Whether or not the loan has prepayment penalty
