Compucrum

Question 1

The SAFE Act mandates specific topics that must be covered as part of a state-licensed loan originator’s continuing education every year. Which of these is a required topic?

Answer 1

Fair Lending

Question 2

Title V of the Housing and Economic Recovery Act of 2008 is more commonly known as the

Answer 2

SAFE Act

Question 3

If the final APR on a fixed rate loan deviates from the initial APR shown on the TIL by more than ________, an additional waiting period is triggered before the loan can close.

Answer 3

1/8

Question 4

of the most critical points of the Federal Reserve Loan Originator Compensation Rule is the prohibition of the practice of

Answer 4

Steering

Question 5

If a lender transfers the servicing of a mortgage, it must inform the borrower at least how many days in advance of the effective date of transfer?

Answer 5

15

Question 6

“Higher-priced loans” are defined by which law?

Answer 6

TILA

Question 7

What are the terms of the “cooling off” period if a loan falls under HOEPA?

Answer 7

Three business days before closing

Question 8

A lender has how many business days to notify the borrower of an underwriting decision?

Answer 8

30

Question 9

RESPA requires that all real estate broker and mortgage broker compensation be disclosed in what document?

Answer 9

HUD-1 Statement

Question 10

How soon after a borrower is provided with all required disclosures may a loan close?

Answer 10

7th business day after loan were disclosed

Question 11

A nontraditional mortgage loan is defined as

Answer 11

anything other than a 30-year fixed rate loan.

Question 12

According to RESPA, an Affiliated Business Arrangement (AfBA) disclosure must be provided

Answer 12

the referring party must give the AfBA disclosure to the consumer at or prior to the time of referral.

Question 13

What doe HMDA stand for ?

Answer 13

Home Mortgage Disclosure act

Question 14

A $100,000 loan will be considered a Section 32 loan if the the points and fees are greater than

Answer 14

5%

Question 15

The main purpose of the FCRA is to help ensure that,

Answer 15

when applying for loans, consumers are evaluated with accurate and confidential credit reports.

Question 16

Which federal law requires financial institutions to file reports of cash transactions exceeding a daily aggregate amount of $10,000?

Answer 16

It is the Bank Secrecy Act/Anti-Money Laundering Act that includes this requirement.

Question 17

When the lender loans money to a borrower and the borrower gives the lender a mortgage, this is referred to as a

Answer 17

primary mortgage market

Question 18

Which sets forth escrow requirements for higher priced mortgage loans?

Answer 18

TILA

Question 19

What federal legislation allows the borrower to challenge the value stated on an appraisal report?

Answer 19

ECOA

Question 20

MLOs are prohibited from

Answer 20

telling an appraiser a minimum value needed to approve the loan.

Question 21

HOEPA amends what law?

Answer 21

TILA

Question 22

Based on 2013 amendments to TILA related to HOEPA covered loans, home ownership counseling is

Answer 22

Required

Question 23

What law regulates settlement and closing procedures and practices?

Answer 23

RESPA

Question 24

How many days after receiving an adverse action notice does a consumer have to request a copy of the credit report on which the decision was based?

Answer 24

60

Question 25

Which fee would NOT be considered a finance charge and would NOT be part of the APR calculation?

Answer 25

escrow deposit for property taxes

Question 26

Which of these circumstances would NOT be an acceptable reason to provide a revised GFE to a borrower?

Answer 26

The loan originator regretted overlooking certain liabilities in order to qualify the borrower for a better interest rate.

Question 27

Borrower Finn wants to refinance his loan. What might his MLO use to determine who is servicing Finn's current loan?

Answer 27

The Mortgage Electronic Registrations System (MERS) helps mortgage lenders eliminate the need for recording mortgage loan assignments when ownership rights change in secondary market transactions.

Question 28

Which mortgage clause allows a lender to declare the entire unpaid balance due on a borrower's default?

Answer 28

Accretion

Question 29

Which activity is considered a significant stabilizing influence of the secondary mortgage market?

Answer 29

standardization of loan criteria

Question 30

A mortgage loan that is upside down is one in which the balance owed is

Answer 30

greater than the value of the property.

Question 31

Which fee is a lender prohibited from charging?

Answer 31

Lenders are prohibited from charging a fee to prepare required disclosures.

Question 32

The income approach is most often used for what type of appraisal?

Answer 32

commercial

Question 33

How long does a bankruptcy stay on the credit report under FICO scoring?

Answer 33

7-10 years

Question 34

A credit account where the borrower places a certain amount of money on deposit with a credit card issuer is known as

Answer 34

secured

Question 35

A Home Ownership and Equity Protection Act (HOEPA) loan is triggered when the total points and fees paid by the consumer exceed the larger of $______, for 2014, or 8% of the loan amount. (These figures are adjusted annually).

Answer 35

$632.00

Question 36

Which agency is responsible for enforcement of the Ability to Repay rules?

Answer 36

The Consumer Financial Protection Bureau is responsible for the enforcement of ATR rules.

Question 37

The legislation that restricts the circumstances under which a financial institution may disclose a consumer's personal financial information to non-affiliated third parties is the

Answer 37

Gramm-Leach-Bliley Act.

Question 38

Which regulation provides guidelines and restrictions on the process of renting, financing, and selling properties?

Answer 38

Fair Housing Act

Question 39

Whose signature is forged in a deed scam

Answer 39

Seller

Question 40

Which law encourages financial institutions to help meet the credit needs of their communities, including low- and moderate-income neighborhoods, consistent with safe and sound lending practices?

Answer 40

CRA

Question 41

Unintentional breach of a legal duty is unethical and is considered

Answer 41

negligence

Question 42

A loan originator's license expires every year on

Answer 42

Dec 31

Question 43

Lenders of a high-cost loan are NOT permitted to consider the borrower's _____________ using commercially reasonable practices.

Answer 43

familial status or age

Question 44

Able Mortgage Company, a licensed mortgage broker, has maintained one principal location for 10 years. The company now wants to expand by opening another full-service brokerage office in a growing area of the state where there is new housing development. What type of license is required for this expansion?

Answer 44

a mortgage broker branch office license