Missed questions
Which of the following is NOT a feature of the USDA Section 502 Direct Loans?
a payback period capped at 30 years
The Government National Mortgage Association
guarantees mortgages backed by federally insured or guaranteed loans.
Which of the following is an example of a subordinate loan?
home equity loan
With a HECM, the amount a person is able to borrow will depend on all of the following EXCEPT
the loan-to-value ratio.
For license renewal, a mortgage loan originator is required to complete a minimum of ____ hours of continuing education on the topic of federal law.
3e
In order to meet the MLO pre-licensing education requirement, a person must complete at least 20 hours of education. As set forth by the SAFE Act, which of the following is NOT included in this 20 hour requirement?
1 hour of state specific laws
With a VA-guaranteed loan, the lender may charge a flat fee, not to exceed ____of the loan amount, to cover the lender's costs and services for originating the loan.
1%
Greg has a stable gross monthly income of $4,000 and recurring debts of $600. If he's getting an FHA-insured loan, what's the maximum monthly payment he would qualify for if the acceptable front and back ratios are 31%/43%?
1,120
If the final APR at settlement deviates by more than ______ from the initial APR on the preliminary Closing Disclosure on an irregular loan, an additional waiting period is triggered.
1/4
Generally speaking, a borrower who gets an FHA-insured loan is expected to make the property his primary residence for at least
12 months.
Laura's name is on the National Do Not Call Registry. At what point after she closes a loan with ABC Mortgage must ABC stop contacting her to solicit new business?
18 months
For license renewal, a mortgage loan originator is required to complete a minimum of ____ hours of continuing education on the topic of federal law.
3
As set forth by the FCRA, when adverse action is based on information in a consumer report from a consumer credit reporting agency, the Statement of Adverse Action must include notice of the consumer's right to a free copy of his consumer report. The consumer's request must be made within _____ of receipt of the adverse action notice.
30
Lender Lou needs to record on the URLA two full years of employment for a potential borrower. The borrower must provide an explanation for any gaps in employment that are ____ days or more.
30
A servicer must submit an initial escrow account statement to the borrower at settlement or within ___ calendar days of settlement for escrow accounts that are established as a condition of the loan.
45
Laura falls in love with a house and is desperate to buy it. The asking price is $235,000. She makes an offer of $230,000 that is accepted and the house appraises for $225,000. If her lender is willing to give her an 80% LTV loan, what is her required down payment if her offer is accepted?
50ke
What is the minimum age required to qualify for a reverse mortgage?
62e
If Ralph has $2,900 in stable gross monthly income, what is the maximum total debt allowed for Ralph by conventional lenders?
928
When a Loan Estimate is provided to borrower Drew, it will be considered to have been provided in good faith if the actual closing costs are lower as shown on the _____ provided to Drew.
: Closing Disclosure
A borrower of a mortgage loan secured by a principal residence may use donated funds from acceptable entities to fund all or part of a mortgage loan. Donated funds from an acceptable entity are referred to as a grant. Which statement is FALSE about these grants?
: Unacceptable entities providing a grant include churches, employers, municipalities, and, nonprofit organizations.
MLO Rob needs the Patriot Act form signed but cannot reach the borrower. The borrower is someone Rob has known since high school and is quite sure he is not a terrorist. Rob cuts and pastes the borrower's signature into the form and scans it to his email. What type of mortgage fraud is this?
: material omission
With a fixed-rate mortgage loan, a change in what item may increase or decrease the monthly payment amount?
: mortgage insurance premium
If an advertisement states that a certain product, service, or loan is available, the product, service, or loan must be made available
: to a reasonable amount of qualified applicants.
Which of the following is NOT a document that requires the inclusion of a licensee's assigned NMLS unique identifier?
A copy of a property appraisal tied to a mortgage loan application that is given to a borrower.
Section 326 of the USA PATRIOT Act amended the Bank Secrecy Act to require financial institutions to establish written a customer identification program (CIP). Which statement is FALSE as it relates to an institution establishing a CIP program?
An individual must provide a residential or business street address; no other address is acceptabl
As set forth in Section 32 of Regulation Z, which of the following is NOT a trigger that requires a lender to adhere to high-cost mortgage loan requirements?
As set forth in Section 32 of Regulation Z, which of the following is NOT a trigger that requires a lender to adhere to high-cost mortgage loan requirements?
The _____ has the authority to enforce the rules found in Section 114 of the Fair and Accurate Credit Transactions Act that require certain businesses and organizations to develop, implement, and administer identity theft prevention programs.
CORRECT ANSWER: Federal Trade Commission
What document would a mortgage lender provide for an adjustable-rate loan that shows a final, detailed accounting of the real estate transaction?
Closing Disclosure
The _____ helps consumers connect with financial companies to understand issues, fix errors, and get direct responses about problems. When a consumer submits a complaint, this company works to get a response from most financial companies within 15 days.
Consumer Financial Protection Bureau
What entity has federal rulemaking authority for the SAFE Act?
Consumer Financial Protection Bureau
What entity assists in providing mortgage loans to low- and very-low-income applicants in eligible rural areas?
Department of Agriculture
Freddie Mac is the more common name of the
Federal Home Loan Mortgage Corporation.
In response to a loan inquiry that results in a complete application, the Truth in Lending Act sets forth that the applicant must receive specific disclosures within three business days. Which of the following is NOT a disclosure that an MLO must provide an applicant within three business days of a complete application?
Initial Escrow Statement
What form shows the income of a self-employed applicant that is part of a company that is a partnership?
K-1e
All of the following statements are TRUE as it relates to a revised Loan Estimate (LE) EXCEPT
R: a lender is prohibited from providing revised LE disclosures for informational purposes only.
_____ occurs when a mortgage loan is funded by an advance of loan funds and then the assignment of the loan is made to the same entity that advanced the funds.
Table funding
____ is a security instrument placing into the hands of a disinterested third party a specific financial interest in the title to real property as security for the payment of a note.
Trust deed
______ a sale to be conditioned on the use of a particular title company chosen by the seller.
Under no circumstances does RESPA allow
Certain loan programs are exempt from ability to repay requirements set forth under the Ability to Repay (ATR) Rule. All of these are loan programs that fall under this exemption EXCEPT for a(n)
adjustable-rate mortgage.
A written statement made under oath by the title holder certifying there have not been any judgments, bankruptcies, or divorces since the title exam is known as a(n)
affidavit of title
The ____clause is the clause in a contract that gives the lender certain stated rights when there is a transfer of ownership in a property.
alienation
A subordination agreement
allows a mortgage to be put in first lien position over an earlier recorded mortgage.
The _____ was established in 1970 as the first law to deal directly with money laundering.
bank secreracy1
As part of an appraisal being conducted for a residential property, what element would be considered part of the gross living area?
bedroom's walk-in closete
HECM programs impose an additional condition on prospective borrowers by requiring them to participate in a consumer counseling session given by an approved counselor
before they can apply for the loan.
All of the following are listed in Section B of BOTH the Loan Estimate and Closing Disclosure as services a borrower cannot/did not shop for EXCEPT the
borrower's title insurance premium.
What word BEST describes a group of participants working together to commit single acts of mortgage fraud?
collusion
For unique property, such as a geodesic home, being purchased as a primary residence, an appraiser is most likely to use what method of appraisal in the absence of comparables?
cost approach
What data does an MLO NOT need to collect under the Home Mortgage Disclosure Act?
family size
Regulation Z sets forth that the term ______ includes any charge payable by the consumer that is imposed directly or indirectly by the creditor as an incident to or a condition of the extension of credit.
finance charge
FACTA identifies reasonable methods for lenders to dispose of documents that contain personal information of borrowers. All of the following are reasonable methods of disposal identified in FACTA EXCEPT for
keeping borrower loan files at an offsite secure location.e
All of these are prohibited loan terms for HOEPA covered loans EXCEPT
late fees.
A ____ is a type of security instrument where the borrower (the mortgagor) conveys an interest in property to the lender (the mortgagee) as collateral for the debt, creating a voluntary lien on the property.
mortgage
Which of the following is NOT a requirement of the E-Sign Act?
must provide consumer with hardware to access records electronically
The estimate for the interest rate shown on a Loan Estimate must be available for at least ___ business days.
no restrictions
On the Closing Disclosure, applicable secondary market charges passed onto the borrower must be properly identified as
origination charges.
The ____ is the standard rate offered by a lender that does not include any discount points or lender credits.
par rate
At the time that Dan applied for a mortgage with MMM and received an initial Loan Estimate (LE), he did not lock an interest rate. Two weeks later, Dan decides to pay the fee and lock the rate with MMM. While preparing the revised LE to reflect the new rate lock fee, the MMM underwriter notices that received appraisal and title fee invoices are slightly higher than originally disclosed. MMM sends Dan a revised LE that reflects new fees. For good faith calculation purposes, which of the following fees paid at consummation will be compared to the REVISED Loan Estimate?
rate lock extension fee
Which of the following is the primary borrower disadvantage when choosing a home equity line of credit versus a credit card to consolidate debt?
reduced home equity
HOEPA is an amendment to
reg z
When lenders evaluate assets, they are specifically interested in identifying if there are sufficient liquid assets to make the cash down payment and pay the closing costs and other expenses incidental to the purchase of the property. Which of the following is an acceptable form of a liquid asset that a lender will accept as a source to make a cash down payment?
retirement accounts
When a consumer chooses a provider that was on the Written List of Service Providers for a service, that service is listed as ____ on the Closing Disclosure.
services Borrower Did Not Shop For
If an advertisement states that a certain product, service, or loan is available, the product, service, or loan must be made available
to all applicants, regardless of their credit characteristics.
When a lender provides required advertising disclosures verbally over the telephone to a potential borrower, clear and conspicuous means all of the following EXCEPT
within a reasonable time frame.
Mary finally is building that dream home in the country on the five acres she has owned for seven years. Can she use the equity in the land in lieu of cash for a down payment on a construction loan?
yes, regardless of whether the land is free and clear, as long as there is enough equity