Ethics

A for-profit MLO who claims to be a "counselor" in an ad about loan modification is in violation of what law? A. Fair lending act B. Fair and Accurate Credit Transaction Act C. Truth in Lending Act D. Home Ownership and Equity Protection Act

C

According to the Interagency Guidance on Nontraditional Mortgage Products, inducing a borrower to repeatedly refinance a loan in order to charge points and fees, although a net tangible benefit could have been achieved in a single transaction is an example of predatory lending. This predatory practice is commonly known as illegal A. Redlining B. Blockbusting C. Loan flipping D. Steering

C

As set forth by the FCRA, creditors who furnish information about consumers to consumer reporting agencies must correct, delete, or verify information within ____ days of receipt of a dispute. A. 10 B. 45 C. 30 D. 15

C

The Fresh Start Company is anxious to work with homeowner, Julia, to obtain a loan modification that will help her avoid foreclosure. Fresh Start asks Julia for an advance fee to start the process. Fresh Start has violated the _____ with this advance fees request. A. Ability to repay rule B. Loan originator's compensation rule C. Red flags rule D. MARS rule

D

The difference between actual fraud and constructive fraud is that actual fraud A. Requires the commission of a crime B. Involves negligence C. Is prohibited D. Is intentional

D

The unlawful act of steering is A. Charging a greater rate of interest on a mortgage loan than the law allows B. Use of voluntary reconveyance or friendly forfeiture to avoid judicial foreclosure C. Refusal to make loans on property in certain neighborhoods for discriminatory reasons D. Channeling buyers to or away from certain neighborhoods based on their race or ethnic background

D

Unintentional breach of a legal duty is considered A. Theft B. Misrepresentation C. Breach of trust D. Negligence

D

Vincent Collins is head of The Family Mortgage Corp. Two of his sons, Michael and Sonny work for the business as licensed mortgage loan originators. His third son, Fred, is not licensed and processes loans for the business. Which of the following would be illegal for Fred to do? A. Call a borrower's employer to verify employment B. Speak to a borrower regarding information appearing on her paystub C. Talk about the family business with anyone outside the family D. Advise a borrower who applied for a loan to get a fixed-rate loan rather than an ARM

D

What is the primary purpose of the Fair and Accurate Credit Transactions Act? A. Prevent the funding of terrorist operations B. Ensure that consumers' credit information is accurately maintained and recorded C. Regulate credit bureau reporting obligations D. Protect consumers from identity theft

D

When a borrower commits fraud in an effort to obtain ownership of a property, it is commonly referred to as A. Fraud for profit B. A straw buying scheme C. A foreclosure scam D. Fraud for property

D

When a lender's advertisement offers a certain product, service, or loan, the product, service or loan must be made available A. For 10 business days B. To all applicants, regardless of their credit characteristics C. To no party if the advertisement stated all "rates and programs to change without notice" D. To a reasonable amount of qualified applicants

D

Which of the following is not a permissible purpose for requesting a consumer report from a consumer reporting agency? A. Credit transaction involving the consumer B. Lease transaction involving the consumer C. Employment involving the consumer D. Medial transaction involving the consumer

D

MLO Sarah knows that the primary source of income for the customer sitting across from her is public assistance, so she tells him to not waste his time applying. Sarah's action is not ethical and it is a violation of what law? A. ECOA B. HMDA C. CRA D. TILA

A

Mortgage companies need to establish internal policies that comply with the Telemarketing Sales Rule. If a customer's name is on the National Do Not Call Registry and that customer closes a loan with the company, the company must stop contacting the customer to solicit new business A. After 18 months B. Immediately C. After one year D. After three months

A

A consumer reporting agency (CRA) must disclose to the consumer the recipients of a consumer's credit report which it has furnished for a purpose other than for employment within the _____-month period preceding the request. A. 1 B. 6 C. 3 D. 5

B

As mortgage broker Sam puts together an ad to attract some new customers, he should follow the requirements of what law to ensure his ad is not misleading or deceptive? A. NAMB B. TILA C. FACTA D. RESPA

B

When a Loan Estimate is provided to a borrower, it will be considered to have been provided in good faith if the actual closing costs are lower as shown on the borrower's A. Good faith estimate B. Closing disclosure C. HUD-1 Settlement Statement D. Closing Addendum

B

Which is LEAST likely to be an indicator of predatory lending? A. Charging excessive prepayment penalties B. Requiring mortgage insurance C. Assets listed on application not verified D. Increasing interest charges on late loan payment

B

Which is an example of steering? A. Seller Tami tells her listing agent to find only Indian buyer prospects B. Property manager Teri suggests Tim would be happier in a more diverse community C. Agent Tina tells homeowners that their property values will drop when a family from another country moves in D. Mortgage banker Todd refuses to make loans for a particular inner-city neighborhood

B

Which is least likely to be an indication that the prohibited act of property flipping may be taking place? A. An inflated appraisal B. Purchasing and remodeling a house and selling it for quick profit C. A series of sales and quick resales D. A group of sellers and buyers changing ownership of one property among them

B

Which of the following is LEAST likely to be a red flag that fraud is occurring? A. Mismatched documents provided for verification B. Derogatory information on a credit report C. The concealment of the source of the borrower's down payment D. Key information left blank on a closing disclosure

B

___ is the primary investigator of mortgage fraud in the United States. A. Local officials B. The FBI C. The mortgage bankers association D. HUD

B

___ is when someone wrongfully obtains and uses another person's personal data in some way that involves fraud or deception. A. Spamming B. Identity theft C. Credit stealing D. Information pilfering

B

_____ is the making of loans that take advantage of poorly informed consumers through excessively high fees, misrepresentation of loan terms, and frequent refinancing that does not benefit the borrower. A. Subprime lending B. Predatory lending C. Mortgage fraud D. Illegal underwriting

B

Which of the following must NOT specifically be considered as part of the underwriting analysis for a mortgage loan? A. Does the loan transaction conform to lender loan policy? B. Have the applicants demonstrated the ability and willingness to repay the proposed mortgage? C. Is the collateral sufficient to secure the proposed mortgage loan? D. What is the history of the performance of properties sold in this geographic area?

D

MLO Brady failed to disclose a loan's prepayment penalty to a consumer in a local publication. This BEST describes an example of A. Misleading advertising B. Coercion C. Documentation fraud D. Fraud for property

A

A consumer reporting agency that receives a request accompanied by proper identification must place a security freeze on the consumer credit report no later than ______ business day(s) after receiving such request. A. 1 B. 5 C. 30 D. 10

A

A consumer wants to file a complaint against XYZ Mortgage Company specific to the inaccuracy of fees provided via the Loan Estimate and Closing Disclosure. With what federal entity could this complaint be filed? A. Consumer financial protection bureau B. Nationwide multistate licensing system and registry C. Department of housing and urban development D. The federal trade commission

A

A prohibited activity that involves homeowners who are encouraged to refinance their property over and over until little or no equity remains is known as: A. Loan flipping B. Panic lending C. Property skimming D. Blockbusting

A

A straw buyer is someone who A. Fraudulently allows his name and information to be used to obtain a mortgage but does not intend to live in the house B. Uses fraudulent income data on a loan application to get a larger loan C. Applies for loans from multiple lenders for the same property D. Defaults on a mortgage and then abandons the property

A

According to the Fair Housing Act, the Equal Housing Opportunity logo must be used in all advertising of A. Residential real estate for sale, rent, or financing B. Residential real estate for sale or financing C. Residential and commercial real estate for sale or financing D. Residential and commercial real estate for sale, rent or financing

A

Alexa's loan applicant calls her late in the evening before the closing, informing her he is being laid off the following Monday. All the loan papers are at the title company and the Closing Disclosure is approved. The buyer still wants the home. Alexa decides to let the loan close. What type of fraud is this? A. Material omission B. Material misstatement C. Fraud by deception D. Material misrepresentation

A

As protection against predatory lending practices, the Home Ownership and Equity Protection Act places limitations on ______that may lock consumers into loans that may not be, or are no longer, in their best interest. A. Prepayment penalties B. Refinancing fees C. Lock in agreements D. Closing fees

A

As set forth by the Telemarketing Sales Rule, when required advertising disclosures are oral, clear, and conspicuous means all of the following EXCEPT A. Within a reasonable time frame B. In the same tone and volume as the sales offer(s) C. In the same language(s) D. At an understandable speed and pace

A

Each of the following sources of income must legally and ethically be used as part of the income calculation used for mortgage loan qualification EXCEPT A. Child support that ends in a year B. Rental income C. Income from a second job D. W-2 income

A

If an appraiser intentionally underestimates an appraisal value to keep the values in that area low, that appraisal would be violating provisions of what law? A. Truth in lending act B. Fair housing act C. Equal credit opportunity act

A

If expired mortgage loan files for borrowers are disposed of in a dumpster at the back of the company's office, the company has violated the consumer-protection requirements set forth by A. FACTA B. RESPA C. HMDA D. ECOA

A

In a fraud for property scheme, it is likely that A. The borrower seeks real estate ownership B. The borrower doesn't intend to repay the loan C. Illegal property flipping occurs D. A group of individuals are colluding to gain from the scheme

A

Reilly, who is five months pregnant, tries to rent an apartment in a six-unit building with access to a shared swimming pool. The property manager rejects her application, citing insurance liability concerns of having small children in the building. Has this property manager violated the federal Fair Housing Act? A. Yes, discrimination based on familial status was a factor in the manager's decision B. No, residential buildings with six units or less are exempt from the federal Fair Housing Act C. No, the Federal Fair Housing Act doesn't apply to discrimination by apartment managers D. No, safety is a legitimate reason for rejecting a rental applicant

A

Sharon, a buyer, agrees to pay full price for a home. She doesn't have the money for a down payment, so she and the seller agree to an undisclosed second mortgage that equals the amount of the desired down payment. This mortgage scheme is known as A. Silent second B. Equity skimming C. Illegal flipping D. Double sold

A

Ted, a mortgage broker, convinces Alice to refinance her home again, promising her a lower interest rate. Afterward, Alice realizes no benefit. In fact, her interest rate went up. This is an example of the prohibited and illegal act of A. Loan flipping B. Home flipping C. Property flipping D. Equity flipping

A

The Fair Housing Act requires the use of what slogan by creditors in all broadcast advertising? A. Equal housing lender B. Equal housing opportunity C. Fair housing opportunities D. Fair housing lender

A

The Fair Housing Act requires what to be posted in all institutions where mortgage loans are made? A. Equal Housing Opportunity house logo B. Loan originator's license name C. The broker's business logo D. Mortgage broker's license number

A

The _____ specifically prohibits the free exchange of nonpublic information between consumers' creditors A. Gramm-Leach-Bliley Act B. Fair Credit Reporting Act C. Equal Credit Opportunity Act D. Truth in Lending Act

A

To ensure a loan closes, a mortgage loan originator conceals the fact that the down payment is made with borrowed funds. This could be considered A. Actual fraud B. Constructive fraud C. Good business D. Negligent misrepresentation

A

Which activity is an administrative/clerical task that can be ethically and legally performed without an MLO license? A. Receive, collect, and/or distribute information common for the processing or underwriting of a loan B. Recommend, refer, or steer a borrower or prospective borrower to a particular lender or set of residential mortgage loan terms C. Take a residential mortgage loan application D. Present for consideration by a borrower or prospective borrower particular residential mortgage loan terms

A

Which situation does NOT involve a straw buyer? A. Marla revises her pay stubs so she can qualify for a loan to buy her dream house B. Blake agrees to secure a home loan for his friend Blake's name, claiming he will live there even though he will not C. Portia allows her name and credit to be used in an illegal property flipping scheme in exchange for $10,000 D. Rob's brother signs and application for a primary residence loan to acquire a hose for Rob because his credit is better than Rob's

A

Before an MLO can send documents to a customer electronically, permission must be obtained by the customer. Which of the following is the MOST acceptable method/s for obtaining consent and confirmation that a customer can access electronic documents? A. By either an electronic or verbal method B. By the electronic method for which the consumer sill access documents C. By any electronic method D. By any method, as long as there is a signature

B

Cory is planning to purchase his first home and his real estate agent said that he must use a specific lender or else face having his loan denied due to his shaky credit record. Is this a legal practice? A. Yes, only certain lenders will loan to higher risk borrowers B. No, it is illegal to steer a buyer to a lender with the impression that using the lender is required C. Yes, since this is the only lender who will make the deal work D. Yes, as long as the agent discloses her affiliation with the lender

B

Emily, the real estate agent in a purchase transaction, tells the MLO arranging financing, in confidence, that her seller has agreed to hold a fixed-rate second mortgage (to be filed after the closing) as a portion of the purchase price, which was not disclosed in the mortgage application. Knowing this information now, what is the BEST course of action for the MLO? A. Process the loan as this information is irrelevant to the transaction B. Refuse to process the loan C. Ignore the information if Emily has the proper documents at closing D. Report the incident to local authorities

B

Fair lending and housing laws set forth requirements that ensure lenders treat applicants fairly and equally. Under laws related to fair lending and fair housing, which is legal? A. Refusing to include child support payments and state aid a viable income B. Disregarding income that cannot be verified C. Creating and promoting a racially or ethnically exclusive lending image D. Subjecting applicants to more extensive credit checks because of race, sex, or nation origin

B

Federal and state laws prohibit licensed MLOs from certain acts. Which of the following is NOT one of these prohibited acts? A. MLO Margret imposes a charge on a borrower for establishing an escrow account B. MLO Hawkeye disburses the mortgage loan proceeds into a customer's account via direct deposit C. MLO Frank accepts a deposit to induce the lender to produce a loan D. MLO Radar conducts business with a known unlicensed broker

B

For a Loan Estimate to be seen as provided in good faith, what cost cannot change from the Loan Estimate to the Closing Disclosure? A. Pest inspection report fee B. Application fee paid to lender C. Settlement agent fee D. Government recording charges

B

MLO Portia takes an application for an owner-occupied property. Soon thereafter, she discovers that the borrower's actual intention is for the property to be a rental property. What is the BEST action for Portia to take? A. She should allow the loan to close and then refinance it as an investment property B. She should talk to her manager and the underwriter about what she's discovered C. She should refuse to process the loan D. She should submit the loan file to the underwriter because this information does not impact the loan decision

B

Sue faces possible foreclosure and contacts a mortgage lender whose ad promises to save her home for her. At closing, Sue sees that the lender changed the terms of the loan that they had agreed to, but she felt she had no choice but to go ahead with the loan or lose her house. This is an example of A. Affinity marketing B. Predatory lending C. Loan flipping D. Negative amortization

B

The Equal Credit Opportunity Act (ECOA) sets forth provisions that ensure lenders are fair in their treatment of mortgage loan applicants and borrowers. Under the protections offered by ECOA, when is it acceptable to discourage a borrower from making a formal loan application because the borrower receives public assistance? A. When the income is below the poverty line B. Never C. When the loan size makes it a nonconforming loan D. When the credit score is below 580

B

The Fair Housing Act does NOT require that the Equal Housing Opportunity logo be displayed on A. Websites B. The closing disclosure C. Business brochures D. Advertisements

B

To address the problem of illegal property flipping, appraisers must analyze the transfer history of a subject property for the previous A. 18 months B. 3 years C. 1 year D. 3 months

B

To comply with Regulation Z, lenders have an ethical and legal responsibility to disclose the ______ on the Loan Estimate. A. Advertised rate B. Annual percentage rate C. Tax rate D. Initial rate

B

To provide a revised Loan Estimate that can be used in determining good faith, a changed circumstance can be any of the following EXCEPT A. Information that was known or provided at the time of application changed after the application, altering the interest rate of the loan B. The MLO neglected to inform the borrower and include the additional cost necessitated by a review appraisal C. There is new information regarding the borrower that the MLO did not rely on when providing the original Loan estimate D. An event occurred that is beyond the control of the creditor or borrower

B

What mortgage broker's act is prohibited? A. Broker Stephen presents a lender's offer that a loan will be made a t a specified rate if the loan is closed by the given expiration date and if the applicant can meet the qualification standards B. Broker Dora collects a rate lock in fee from a client payable to the broker C. Broker Emily collects a rate lock in fee from a client on the mortgage lender's behalf, payable to the mortgage lender D. Broker Damion collects a rate lock in fee required by a governmental agency to be collected directly by the mortgage broker

B

What sources of income CANNOT be used when qualifying a borrower for a mortgage loan? A. Pensions, interest and dividends B. Sporadic overtime and bonuses C. Regular earnings and overtime D. Revealed alimony and child support

B

Becky, a mortgage broker, referred her client to A&A Title, a company that both she and her husband John own. For this referral to be ethical and legal, Becky must A. Also provide a list of alternative title companies to the client B. Not provide the referral because it is prohibited by RESPA C. Give full disclosure to the client at, or prior to, the time the referral is made of the affiliation D. Disclose the affiliation only if the client chooses A&A title

C

Broker Tom advertises low interest rates and includes the accurate APR. However, when qualified applicants come in, Tom tells them that the smarter loan for them would be one with a slightly higher rate and more fees. If the loan does not offer more benefits than the one advertised, did Tom do anything wrong? A. No, he included the accurate APR as required by the Truth In Lending Act B. No, it is legal to try to upsell a consumer to a product that earns more commission for the lender C. Yes, Tom could be accused of using a bait and switch tactic to earn more D. Yes, Tom violated FACTA by making false statements in advertising

C

For conventional lending, MLO Mandy can tell applicant Aiden that a gift can be provided by any of the following EXCEPT a(n) A. Individual who is related to the borrower by guardianship B. Individual who is related to the borrower by blood C. Real estate salesperson affiliated with the transaction D. Domestic partner

C

If a consumer feels he has been discriminated against under the Fair Housing Act, he has ____ year to go to ____ to file a complaint. A. 3 years, department of finance B. 3 years, NMLS C. 1 year, department of housing and urban development D. 1 year, CFPB

C

If a consumer thinks his identity has been stolen, he may want to place a temporary freeze on his credit report. What is the maximum fee that a CRA may charge a consumer for placing a freeze on the consumer's credit file? A. $25 B. $5 C. $0 D. $10

C

If the final APR at settlement deviates by more than ______ from the initial APR on the preliminary Closing Disclosure on an adjustable-rate mortgage loan, an additional waiting period is triggered. A. 6/8% B. 3/8% C. ¼% D. ½%

C

Jim, an appraiser, is told by the lender to "hit the number" on a property or else they would do business elsewhere. Jim appraises the property at a value that is disproportionately above other comparables. What term does the industry commonly use to describe the resulting appraisal? A. Embellished B. Value challenged C. Inflated D. Overstated

C

Mortgage broker Faith recruits her cousin Hope, who has great credit, to apply for a mortgage on the property, even though Hope is moving to Canada and has no intention of paying off the loan. In this case, Hope is called a ________ buyer. A. Negligent B. Arm's length C. Straw D. Collateral

C

Mortgage broker Helen places an ad indicating a 5% interest rate for qualified applicants. Marshall meets the criteria to qualify at that rate, but Helen talks him into a less appropriate product, which results in a higher fee for her. This is an example of what sort of prohibited advertising tactic? A. Loan flipping B. Extortion C. Bait-and -switch D. Ponzi scheme

C

Mortgage companies are required to report any attempted fraud that occurs within their organization. Attempted fraud is reported by submitting a ______ to the Federal Financial Institution Examination Council (FFIEC). These reports are then reviewed and the information is reported to the institution's regulator. A. Financial center investigative inquiry report (FCIIR) B. Currency and monetary instrument report (CMIR) C. Suspicious activity report (SAR) D. Currency transaction report (CTR)

C

Per the Equal Credit Opportunity Act (ECOA), it is unlawful and unethical to discriminate in lending practices by refusing to grant a loan or altering the terms of a loan because of a borrower's A. Source of down payment funds via gift from minority parents B. Occupancy status of a single borrower C. Membership in a protected class D. Employment status or continuance or income

C

Section 36 of Regulation Z sets forth requirements for compensating MLOs. As set forth in Regulation Z, which is a prohibited compensation act? A. An MLO receives compensation from a mortgage banker based on the loan volume he originates B. An MLO receives compensation from a mortgage broker based on long-term loan performance C. An MLO receives compensation from a mortgage banker based on the loan type D. An MLO receives compensation from a mortgage broker based on an hourly rate for time worked

C

Seller Mike is signing a listing agreement with agent Alice of River Realty. He purposely leaves out the fact that he is still married to his wife Wendy, although she has moved out of the house. He does not want to share the proceeds of the sale with her. Mike has likely committed A. Constructive fraud B. Material misstatement C. Actual fraud D. Negligent misrepresentation

C

The Equal Credit Opportunity Act (ECOA) sets forth provisions that ensure lenders are fair in their treatment of mortgage loan applicants and borrowers. Under the protections offered by ECOA, how is the lender to ask about an applicant's marital status? A. Are you single, married, or widowed? B. What is your marital status C. Are you married, unmarried, or separated? D. Are you married or divorced?

C

The FBI compiles data on mortgage fraud through A. LARs B. MARI C. SARs D. NAMP

C

The Loan Originator Compensation Rule, as implemented by Regulation Z (Section 36), sets forth that a mortgage broker is prohibited from compensating an employed MLO based on A. Long-term loan performance B. A flat fee fixed in advance C. Loan program type D. Overall loan volume

C

The compliance officer at a mortgage company must file a SAR when he observes electronic funds transfer transactions aggregating _____ or more that involve potential money laundering or violations of the Bank Secrecy Act. A. $15,000 B. $20,000 C. $5,000 D. $10,000

C

The maximum penalty for committing the federal crime of mortgage fraud is A. 5 years in prison and $500,000 fine B. 10 years in prison C. 30 years in prison and 1,000,000 fine D. $500,000 fine

C

What type of property is involved in the air loan fraud scheme? A. Residential B. Mixed use C. Non existent D. Commercial

C

When a person receives an electronic funds transfer transaction aggregating more than $5,000 and suspects that money laundering is behind the transaction, what report needs to be filed? A. Currency and monetary instrument report (CMIR) B. Currency transaction report (CTR) C. Suspicious activity report (SAR) D. Financial Center Investigative Inquiry Report (FCIIR)

C

When an MLO is printing a receipt for a consumer's credit card or debit card number, FACTA requires that no more than ____ digits of any customer's card or debit card number appear on the receipt. A. 6 B. 4 C. 5 D. 3

C

When an appraiser gives a mortgage loan originator "what's needed" on the appraisal report, the consumer usually ends up A. Paying more discount points at closing B. Refinancing the property C. Using too much of the equity tied to the property D. Not being able to sell the property

C

Which of the following does NOT accurately reflect a requirement set forth by FACTA for companies to properly secure or dispose of confidential customer information? A. Companies must place all pending loan documents in locked desks, cabinets, or storage rooms at the end of the workday B. Companies must dispose of documents with consumer information by burning or shredding C. Companies must not maintain documents via electronic storage methods D. Companies must dispose of consumer information by destroying or erasing electronic files or media

C

Who is typically the perpetrator in a fraud for property scheme? A. Seller B. Appraiser C. Borrower D. Lender

C

XYZ Mortgage Company makes a loan to Jaya knowing that she is unlikely to be able to repay it and anticipating that they'll eventually foreclose and obtain some equity. This is an example of A. Prime lending B. Secondary lending C. Predatory lending D. Subprime lending

C

XYZ Mortgage Servicing Company has a legal and ethical responsibility to protect consumer information. Under the Gramm-Leach-Bliley Act, what information IS EXEMPT from the nonpublic personal information sharing requirements? A. Income information a consumer includes in a credit application B. A bank customer's account balance C. The loan amount that appears on a recorded mortgage D. A consumer's credit score a loan originator gets from the credit bureau

C

____ most commonly commit mortgage fraud for profit. A. Investors B. Government officials C. Industry insiders D. Consumers

C

Seller Fred knows that he has an outstanding lien on his property, so he pays one of the professionals involved in the transaction to ignore it so the loan can close. Who did Fred most likely involve in his mortgage fraud scheme? A. Real estate agent B. Appraiser C. Buyer D. Title company

D

A claim in any medium that gives the consumer an incorrect understanding of the service or product he is interested in obtaining BEST defines the term A. Unfair advertising B. Bait and switch advertising C. Fraudulent advertising D. Misleading advertising

D

A(n) ___ loan is BEST defined as a loan that is a total fabrication used in a mortgage loan fraud scam. A. Disappearing B. False C. Silent second D. Air

D

Bait-and-switch advertising is BEST described as advertising A. Services of an MLO without disclosing the unique identifier number of the MLO B. A "no down payment" loan for qualified veterans only C. Loan terms via a pop up window from a real estate website D. A "no points" loan to entice borrowers buy not having the intention of actually offering it

D

Betty is a loan processor for ABC Mortgage Corp. and is not licensed as a loan originator. Which of the following activities is illegal for her to engage in? A. Engaging in a personal relationship with a borrower B. Asking a borrower about employment information C. Calling the borrower's bank to obtain a verification of deposit D. Advising a borrower about which loan program is most appropriate

D

If a consumer feels she has been discriminated against based on membership in a protected class under the Equal Credit Opportunity Act, she can go to the _____ to file a complaint. A. USPAP B. NMLS C. HUD D. CFPB or appropriate state civil agency as directed

D

In compliance with the Fannie Mae Selling Guide, which statement is FALSE as it relates to the persons who must sign a security instrument? A. The domestic partner of any person who has an interest in the property must sign, if the partner's signature is necessary under state law to waive any property rights by virtue of being the owner's partner B. The spouse of any person who has an interest in the property must sign, if the spouse's signature is necessary under state law to waive any property rights by virtue of being the owner's spouse C. Each person who has an ownership interest in the security property must sign, even if the person's income is not used in qualifying for the mortgage D. Only persons who have an ownership interest in the security property and also have his/her income used in qualifying for the mortgage must sign

D

Intentional or negligent misrepresentation or concealment of material facts is unethical and is most likely an example of A. Redlining B. Predatory lending C. Prohibited loan flipping D. Fraud

D

Mortgage broker Bran is working with customer Arya. Bran recommends that she get a thorough home inspection and recommends Winter Inspections. Do you think that Bran can ethically and legally accept a $50 referral fee from Winter Inspections if Arya hires them? A. Yes, as long as it is a reputable company and Arya is happy with its work, Bran can accept the fee B. Yes, as long as Bran gave her the name of at least on other inspection company C. Yes, if Bran discloses the referral fee in writing to Arya, he can accept the fee D. No, a mortgage broker can never accept a fee or rebate for unearned settlement expenditures by his customer

D

Mortgage broker Cindy's customer purposely does not tell her that he just co-signed his nephew's auto loan. The credit report shows neither that loan nor a credit inquiry, and so that debt is not considered when Cindy gets him pre-approved for a larger mortgage than he really should have. Do you think Cindy did anything wrong? A. Yes, she colluded with the customer to withhold material information B. Yes, she committed actual fraud by approving a purposely false application C. Yes, she committed constructive fraud by not confirming the customer's debts D. No, she can't be held responsible if a client withhold information that does not show on his credit report

D

Mortgage companies need to establish internal policies that comply with the Telemarketing Sales Rule. Internal compliance policy can allow an MLO to call a consumer that makes an inquiry or submits an application to the company for up to ____ month(s) from the inquiry/application date. A. 1 B. 6 C. 12 D. 3

D