101-120

Question 1

A lender who does not cancel PMI when the LTV reaches 78% is in violation of which federal law?

Answer 1

Homeowners Protection Act

Question 2

What rule prohibits any material misrepresentation, whether made expressly or by implication, in any commercial communication regarding any term of any mortgage credit product?

Answer 2

The MAP Rule

Question 3

The Patriot Act requires non-bank mortgage lenders to implement all the following actions except:

Answer 3

Develop a Red Flag program that identifies all mortgage loan applications involving foreign nationals.

Question 4

An MIP is required for what type of mortgage loan?

Answer 4

A FHA One- to Four-Family Residence

(d) A non-conforming loan with an LTV greater than 80

Question 5

A borrower is obtaining a refinance through a lender who requires a payment of PMI on first liens with LTV’s over 80%. The property is valued at $330,000, and the borrower has a second lien HELOC with a balance of $80,000. The borrower has applied for an Adjustable-Rate Mortgage of $250,000 for 30 years with an initial rate of 3.0%. Which of the following statements is correct?

Answer 5

The lender will not require mortgage insurance.

Question 6

If the loan application is taken over the phone or internet, the borrower(s) must sign the completed application:

Answer 6

As soon as possible thereafter.

Question 7

Which of the following forms are required by FNMA to authorize underwriting access to a borrower’s tax documents?

Answer 7

Form 4506-C

Question 8

How many days before consummation must a final revised Loan Estimate be provided to the consumer?

Answer 8

No later than four business days prior to consummation

Question 9

Per FNMA guidelines, what percentage of rental income may be included by a borrower who has investment properties for the purposes of loan qualification?

Answer 9

75%

Question 10

All licenses issued shall be valid for a term of not more than one year from the date of issuance and shall expire on:

Answer 10

December 31st of the year issued.

Question 11

As required under the SAFE Act, the pre-licensing education completed by the individual must include at least:

Answer 11

12 hours of training on NMLSR approve instruction (commonly referred to as “electives”) on mortgage origination.

Question 12

Under the CFPB’s Final Rule general ability-to-repay standard, mortgage lenders must consider and verify, using reasonably reliable third-party records, all the following underwriting factors except:

Answer 12

A minimum credit score of 600.

Question 13

Which of the following documents discloses the Annual Percentage Rate for a loan to a borrower?

Answer 13

Loan Estimate

Question 14

A complex fraud that involves the purchase and subsequent resale of property at greatly inflated prices is called _____.

Answer 14

Property Flipping

Question 15

Under the Home Ownership Equity Protection Act (HOEPA), which of the following would be defined as a high-cost loan?

Answer 15

$145,000 loan with fees of $7,975

Question 16

For purchase money transactions, the maximum insurable FHA LTV is:

Answer 16

96.5 % LTV the reciprocal of the 3.50% down payment.

Question 17

What is the name of a mortgage loan that is secured by a pledge of real property but for which the borrower is not personally liable?

Answer 17

Non-Recourse Loan

Question 18

Any seller concession or combination of concessions that exceed 4 percent of the established reasonable value of the property is considered excessive and unacceptable for:

Answer 18

VA guaranteed loans

Question 19

The disclosure requirements of TRID would apply to which of the following loans?

Answer 19

A loan to purchase 75 acres of land

Question 20

For a fee, a real estate licensee offers a residential mortgage loan originator the names and contact information of the attendees of a first-time homebuyer seminar conducted by the Realtor. Who is in violation of RESPA Section 8?

Answer 20

The real estate license