QUESTIONS I MISSED
Your borrower qualifies for a 95% LTV and has a payoff of $70,000. How much cash is available if the appraisal is $95,000 and the closing costs are $3,000?
$95,000 X 95% = $90,250 - $70,000 - $3,000 = $17,250
How many months does a FICO Score consider a credit inquiry in the calculation?
12 months
A subordination clause in a mortgage takes ______ place behind a primary mortgage
2nd
during initial application, loan originators must make disclosure of all of the following, except:
3 year history of loan production
After receiving a mortgage application, a creditor must send a notice of decision to the applicant within:
30 days
According to ECOA, a borrower can request a copy of the appraisal report used in the decision process within ___ days of a credit decision.
90
What will be the monthly PMI on a 90% LTV loan for a property valued at $500,000 if the monthly PMI factor is 0.60%?
$500,000 x 90% x.60% / 12 = $225
Which of the following documents is recorded with the county to notify the public of the lenders security interest in the subject property?
The mortgage is a documents that is recorded with the county to notify the public of the lenders security interest in the subject property
The purpose of the property appraisal is to:
Determine if the property value is adequate for the collateral of the loan.
While taking a loan application, a mortgage loan originator will not gather
Discharged bankruptcy papers from 10 years ago
Which is the largest secondary market participant?
Fannie Mae
What does "FHA" stand for, when referring to the agency which oversees the FHA loan program?
Federal Housing Administration
On an ARM loan, a _______ _________ rate after one year would not be found on the note.
Fully Indexed
What federal legislation requires loan originators to collect demographic data to ensure that creditors are not engaging in discriminatory lending?
HMDA
In order to avoid CFPB intervention, an entity that has authority over loan originators ina state must meet all of the following standards EXCEPT:
Have a process for streamlining the licensing process to reduce the regulatory burden
The APR factors in the effects of all of the following expenses, except ?
Hazard insurance premium
As a result of RESPA Section 6, what must lenders do in regard to insurance?
Lender must notify the borrower in writing prior to establishing forced-placed insurance
A mortgage lender enters into an agreement to maintain a desk in a real estate company's office for the purpose of pre qualifying borrowers. The mortgage lender pays the real estate company market rate fee for the rental of the desk space. Who has violated RESPA?
Neither are in violation - the broker paid the fair market value for the services
Danny is applying for a loan originator license. His credit report indicates that he has a nuber of judgements filed against him, all related to a serious medical condition his wife suffered four years prior. Will Steven be denied a license because of the judgements?
No because the judgements are a result of medical expenses, they will not be held against him.
For an FHA loan, if the LTV on the loan is equal to or less than 90% at the time of settlement, the borrower must pay _______ ______ ________ for at least 11 years.
Mortgage Insurance Premiums
Information or material held by the NMLS relating to the employment history and/or disciplinary and enforcement actions taken against a mortgage loan originator, is not protected by confidentiality and is available for _________ access.
Public - non confidential and available for public access
The Privacy Rule requires that financial institutions provide the consumer with a Consumer Privacy Policy before disclosing information to _____ _____ _______ parties
Non-affiliated Parties
A document that changes the order of priority of mortgage liens is referred to as the:
Subordination agreement
A disclosure that allows a consumer to more easily compare loan options is required under which regulation?
TILA - Uses LE and CDs
The combined loan to value ratio may also be referred to as the:
TLTV (total loan to value)
In ________ funding arrangements, a mortgage broker will originate, process, and close in its own name a loan underwritten and funded by a secondary lender, but will then assign the loan to the funding lender at the closing table.
Table Funding
Which of these replaces the HUD-1 Settlement Statement and the final TIL disclosure?
The Closing Disclosure
The NMLS was established by:
The Conference of State Bank Supervisors and The American Association of Residential Mortgage Regulators
________ ________ ___________ premium describes the fee charged to the borrower to insure an FHA loan.
Upfront mortgage insurance premium
Credit scoring refers to the
numerical values the credit agency assigns to a borrower.
What may an underwriter use as a basis of approving a mortgage loan application?
likelihood of continued income
What is the formula for calculating the loan to value ratio?
loan amount divided by property value
Market value can best be defined as a property's:
most probable selling price
Promissory notes that are freely transferable from one party to another are called
negotiable instruments.
A person who allows the use of their personal identifying information (usually in exchange for a fee) by another individual to take out a loan is known as a ___________?
straw buyer
Who is most generally responsible for completing the accurate final Closing Statement to the borrower once a closing date has been scheduled?
title agent
On the LE, fees related to third-party service providers chosen from the provider list and not affililiated with the creditor are grouped with the recording fees and subject to a ______ tolerance.
10%
In regard to tolerances related to settlement costs, fees related to third-party service providers and recording fee are grouped together and subject to ____ tolerance.
10%
If a consumer submits a complaint about a mortgage lender to the CFPB, the lender has ____ days to respond before the CFPB publishes the complaint in its public complaint database and pursues a potential investigation.
15
When disclosing a HUD-1 Settlement Statement, MLO Ben Pierce notices services the borrower could shop for increased by 4.077% more than the applicable 10% tolerance. How many days after closing does the MLO have to issue a tolerance cure to the borrower?
60
A consumer, under the Gramm Leach Bliley Act, is an individual who
A person that obtains a service or product from a financial institution.
Which of the following loan transactions would have a rescission period?
A refinance of an owner-occupied dwelling.
95% is generally the maximum loan to value ratio on a purchase transaction for which of the following loan programs?
Conforming Loan
The relationship between the cost of borrowing and the total amount financed, represented as a percentage, is known as:
APR
________________ is made when comparable properties are compared to subject property in a mortgage loan transaction.
Adjustment
What is the formula for the debt to income (back end) ratio?
All recurring monthly debts divided by gross monthly income
When a lender quotes an interest rate to a consumer, what must also be disclosed?
Annual percentage rate
180 / 360 loan is considered a _____________ mortgage.
Balloon
A mortgage which is amortized for a longer period than the actual term of the loan can best be described as what type of mortgage?
Balloon Mortgage
A type of fixed rate mortgage loan with monthly payments based on a 30 year amortization schedule and a 10 year maturity date is called a:
Balloon payment
Bill is attempting to get licensed in Texas, which has adopted UST. He has already taken and passed the retired National Test Component, but never passed the Texas State Test Component, having failed three times prior to April 1, 2014. What are his requirements after April 1, 2014?
Bill must take and pass the National Test with Uniform State Content.
Title X of the dodd frank wall street reform and consumer protection act of 2010 created the
CFPB
Which of the following correctly describes entities that have obligations under the fair credit reporting acts?
CRAs, furnishers of information to CRAs, and users of consumer reports.
What must condominium associations do with respect to property insurance?
Condos require a "blanket" policy
Consummation occurs when:
Consumer becomes contractually obligated to the creditor
Steering consumers to loan products that would result in greater compensation for a mortgage loan originator is prohibited by what legislation?
Dodd Frank Act
Money paid by a buyer to a seller at the time of entering into a contract to indicate intent and ability to carry out the contract is called:
Earnest money
An objective of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 is to
Eliminate unfair practices relating to compensation paid to mortgage loan originators.
A mortgage and a lien are both examples of:
Encumbrances
What program has an upfront mortgage insurance premium?
FHA
Which of the following types of mortgages typically carries 2 different types of mortgage insurance?
FHA
For a lower-income buyer with high debt ratios, a preferred loan choice might be a(n)
FHA Loan
RESPA Section 12 provides that no ______ can be charged by a lender for the preparation and distribution of documents required in connection with the making of a federally-related mortgage lien.
Fee
Pledging of property as collateral for a loan is:
Hypothecation
UFMIP is paid:
In full at the time of closing
the loan originator must answer the question "Can this amount __________ after closing" on the closing disclosure.
Increase
In a standard deed of trust, payments are applied to ________ first, then to ____________, and then to _______ items, such as tax and insurance payments.
Interest, principal, escrow
A loan on which of the following properties would not be subject to the requirements of RESPA?
Investment property
Recording of the deed happens where:
Local Courthouse
a misleading representaion, omission act or practice is considered deceptive when, among other conditions it is
Material
Melissa intentionally tells her mortgage broker from whom she's trying to secure a home loan that she receives $1,200 each month in child support, though it's really only $800. This is an example of:
Material misstatement
If a borrower is requesting a cash out refinance on a non-owner occupied home they own and sign all the closing documents on a Monday. There is no Federal Holiday during the month, when could the loan fund?
Monday - there are no rescission period for cash out on an investment property
Conrad began his pre licensing education in one state and ended up moving to another state prior to actually submitting an application for a mortgage loan originator license. What happens to the courses he has completed?
NMLS-approved courses are accepted towards credit in any state.
The Richardsons have just closed on their mortgage loan at a formal settlement meeting. What is mortgage loan originator Lisa Lees responsibility after loan closing?
NONE. Lisas tasks are complete
The rate that is used to amortize the mortgage loan and determine the monthly loan payments is known as the:
Not Rate
Which of the following is NOT a factor when calculating the VA funding fee?
Number of discount points charged is NOT a factor when calculating the VA funding fee
The three business-day right of rescission is in effect for what type of loan closing?
Owner occupied refinance
The most frequently used PMI payment plan is:
PMI is paid monthly
Nonpublic personal information (NPI) does not include information where there is reasonable basis to believe it is lawfully made publicly available, such as an employer's ________ __________.
Phone number
In the context of an appraisal, the term _____________ value refers to the price or price range appearing most frequently in the market area defined by the appraiser in the report, based on comparable sales.
Predominant
An all-cash sale is not covered by what law?
RESPA
Mortgage loan origination compensation is not regulated under what law?
RESPA
Which law requires notification to a borrower before the servicing of a loan is transferred to someone else?
RESPA requires a Servicing Transfer Statement
According to the SAFE Act, a mortgage loan originator employed by a federally insured depository institution must be _________
Registered
The Federal Home Loan Bank System (FHLB) provides advances to financial institutions for ___________ mortgages.
Residential
Each mortgage loan originator must be covered by a __________ bond
Surety
When disclosing the amount of premium for title insurance:
The creditor must disclose the amount of premium for lender's title coverage without any adjustment made for the owner's title policy.
After a borrower allows the assumption of his or her VA loan, he or she may use his or her VA privilege again only after:
The original VA loan is satisfied. Means that is is paid off, either over the remaining amortization time period, sale of the home, or refinancing out of the VA loan.
It is illegal for any telemarketer to call a number on a National Do Not Call registry UNLESS:
The seller has received express written permission to call the consumer
When can a mortgage broker employ an unlicensed and unregistered mortgage loan originator?
Under no circumstances
Who makes the final loan approval or denial decision for a conventional mortgage loan?
Underwriter
Page 1 of the loan estimate includes the name and address of the creditor. If there are multiple creditors:
Use the name of the creditor completing the form
After the state regulatory authority revokes Lisa's mortgage loan originator license, does she have any options for appeal?
Yes, she can appeal to the State Supreme Court.
Under ECOA, providing different terms of financing for a potential borrower who has poor credit scores due to a recent bankruptcy is considered:
acceptable
A mortgage loan processor distributes a company business card with her name on it along with the unique identifier of the mortgage lender she works for. The loan processor handwrites a message on the card which states, "I can help you get a loan." This employee is
committing a prohibited act of misrepresentation in advertising which is a violation.
A loan originator who does not include a borrower's receipt of long-term disability income on a loan application is
committing an act of fraud by omission.
One of the many tasks of the Consumer Financial Protection Bureau (CFPB) is to
ensure borrowers understand the fine print that explains the risks involved in using financial services.
In order to qualify for an adjustable rate mortgage, a consumer must be able to show that he can:
make amortizing payments that are calculated using the fully indexed rate for the ARM
The penal sum of the surety bond must reflect the dollar amount of loans ___________.
originated
Market price is
the amount, in dollars, actually paid for the property.