Miscellaneous

Question 1

20 HR PE Breakdown

Acronym

Breakdown

Prescribed by…(what)

Answer 1

20 HR, Pre-licensing Education (PE)

Fed Law + Regulation - 3 HRS
Ethics - 3 HRS
Non-trad. Mortgages - 2 HRS
Undefined Education - 12 HRS

The Safe Act requires it

Question 2

(CE)

• Acronym
• Who it applies to
• # + Breakdown

Answer 2

• Continuing Education (CE)
• Licensed MLO must take 8 hours of cont. educ. to keep license up to date
• 8 HOURS
  3 HRS - Fed Law/Regulation
  2 HRS - Ethics
  2 HRS - Non-Traditional Mort. Standards
  1 HR - Undefined education

Question 3

Name of Test taken in order to receive license

(Acronym and Full)

Who participates?

Answer 3

Uniform State Test (UST)

All 50 states participate (pg. 47 = wrong)

Question 4

5 possible categories included in UST Exam

Answer 4

• Mortgage Loan Origination (MLO)
• General Mortgage Knowledge (GMK)
• Federal Laws
• Ethics
• Uniform State Content (USC)

Question 5

How many minutes to complete exam?

Answer 5

190 minutes

Question 6

of times a test can be taken, prior to 6 month wait

Answer 6

3

Question 7

(MU) Form

Answer 7

Mortgage Uniform Form

- form MLO’s fool out during the registration/licensing process in order to request the necessary license

Question 8

Two different DTI calculations + their AKA’s

General Equations

Details of what’s included

Answer 8

1. Housing DTI Calc (AKA Front End Ratio)

(PITI + Housing Expenses) / (gross monthly income) = Front End DTI

• Housing Expenses includes HOA
  2. Total DTI Calc (AKA Back End Ratio)

(Total Monthly Expenses) / (gross monthly income) = Back End DTI

• legal monthly credit obligations that can’t be cancelled

Question 9

Interest

Answer 9

How much a client pays to borrow money

Question 10

Arrears

Answer 10

Paying now, for the use of money from the previous month

Question 11

T/F

Borrower Hazard insurance is required by all lenders

Answer 11

True

Question 12

Adjustable Rate Mortgage (definition)

Answer 12

A mortgage loan with a variable rate, that fully amortizes.

Question 13

VERIFY

pg. 63 - A mortgage loan with a variable rate, that does not have a complete amortization schedule at the start of repayment

Ex: of such product

Answer 13

VERIFY HELOC

Question 14

Appraiser follows what guidelines?

Answer 14

(USPAP) Uniform Standards of Professional Appraisal Practice

Question 15

T/F - Appraisers are licensed separately at state level, but may be required to be licensed/registered within local jurisdiction too.

Answer 15

True (pg 20)

Question 16

AKA for lender

Hint: legal terminology

Answer 16

Mortgagee

Question 17

AKA for Borrower

Hint: Legal terminology

Answer 17

Mortgagor

Question 18

Direct Lender

Answer 18

Lender/Company/Entity that originates and funds the loans we write

Question 19

Regulator (definition)

Two different kinds in general for mort. industry originations

Answer 19

Person or institution that supervises/controls for fairness, efficiency, and financial stability of a financial system

State and Federal regulators

Question 20

T/F - consumers and customers are required to have the same documentation provided to them

Answer 20

Pg. 21

False - Customers with a direct relationship, as opposed to a shopping consumer that has yet to commit, are not required to have the same information provided to them, at the same time (Think Disclosures)

Question 21

Cost of financing

Answer 21

Pg. 23 -

Additional fees involved in cred. transaction + the fee the Bor pays for financing the loan

Question 22

APR

Answer 22

Annual Percentage Rate

Cost of full loan terms, distributed annually and expressed as percentage

Question 23

The owner of the loan is also known as…

Answer 23

…the bondholder (p. 51)