MIXED DECK

Question 1

Are utilities and cell phone considered debt obligation?

Answer 1

Monthly utilities and cell phone bills are not included in debt calculations. They are exempt from DTI ratios

Question 2

What is TRID

Answer 2

The TILA and RESPA Integrated Disclosure

Question 3

Are Alimony, Child Support, Separate Maintenance Payments considered debt obligation?

Answer 3

YES, considered debt obligation. When the borrower is legally required for more than 10 months to pay alimony, child support, or maintenance payments.
Note: voluntary payments do not need to be taken into consideration.

Question 4

Is Business Debt in Borrower’s Name considered debt obligation?

Answer 4

NO, not considered debt obligation (when confirmed). A self-employed borrower may claim a monthly obligation (that appears on their personal credit report) is being paid by the borrower’s business. In this instance, you must confirm it was paid by company funds (12 months cancelled checks) and that this was considered in its cash flow analysis of the borrower’s business.

Question 5

A good payment history under the Home Owners Protection Act (HPA) means no ___ lates in the last 24 months and no _____ lates in the past 12 months.

Answer 5

60 day lates in the past 24 months; 30 day lates in the past 12 months

Question 6

For VA loans, the funding fee for a borrower using their entitlement for the first time putting down less than 5% is

Answer 6

2.15%

Question 7

In the event of default, the VA will guarantee up to ____% of $____

Answer 7

25% of $510,400 (conforming loan max amount)

Question 8

on a va guaranteed loan the max. entitlement that is reflected on the certificate of eligibility is:

Answer 8

$36K

Question 9

The up-front mortgage insurance on a full qualifying FHA loan is:

Answer 9

1.75%

Question 10

The most popular FHA loan program is the Section _____ insured mortgage

Answer 10

203B

Question 11

Max. seller contributions towards closing cost or prepaid items on a FHA loan are:

Answer 11

6%

Question 12

For fannie mae, a borrower can use ___ of stock portfolio account for reserves

Answer 12

60%

Question 13

Fannie Mae requires insurance coverage equiaty to the less of ____% of the insurable value of the improvements as determined by the insurer OR the unpaid principal balance as long as it equals ___% of the insurable value

Answer 13

100/80

Question 14

for fannie mae, income qualifying requires the verification of the most recent ____ days of earnings

Answer 14

30

Question 15

for fannie mae, a limited cash out refi allows the borrower to get cash pack, the lower of $___ or ____%

Answer 15

2,000/2%

Question 16

the exterior only appraisal for a single family unit is a fannie mae form number ____

Answer 16

2055

Question 17

the max seller contributions for an investment property under fannie mae is

Answer 17

2%

Question 18

for fannie mae, if the LTV is equal to or greater than 90% the max. seller contributions is____% of the lower of the sales price or appraised value

Answer 18

3%

Question 19

the number of months non-traditional credit is evaluated for loan approval is:

Answer 19

12months

Question 20

if a debt has no payment associated with the debt, the underwriter will allocate ____ of the debt as a qualifying payment

Answer 20

5%

Question 21

the temporary 2/1 buydown loan means that the note rate is reduced by ____% in year one and ____% in year two

Answer 21

2%/1%

Question 22

A biweekly payment plans has ___ monthly payments in a year

Answer 22

13

Question 23

an adjustable rate mortgage that has a fixed rate for 5 years and can change annually is a ____ ARM. The rate is rounded to the nearest ____

Answer 23

5/1; 1/8th

Question 24

conventional confirming loan limit for a single family unit is

Answer 24

510,400 for 2020

Question 25

liability for violating ECOA could result in a penalty of up to $___ and in a class action law suite $___ and ____% of net worth whichever is less

Answer 25

10K, 500K, 1%

Question 26

ecoa requires a notice of action taken within ___ days of a counter offer that is not accepted

Answer 26

90

Question 27

ecoa requires a copy of an appraisal or any evaluation of the subject property within ___ days prior to the loan closing and ___days after it is determined the loan will not close

Answer 27

3/30

Question 28

the red flag identity theft program is a mandatory program and includes ___ red flag items created by the FTC

Answer 28

26

Question 29

the equal credit opportunity act (ecoa) is title ___ of the consumer credit protection act

Answer 29

7

Question 30

payment history makes up what percentage of the credit score?

Answer 30

35%

Question 31

the range of the credit scores is

Answer 31

300-850

Question 32

under reg v, if a lender collects credit scores on a borrower, the lender discloses the scores to the borrower and must also give ___ reasons for each score.

Answer 32

4

Question 33

a one phone call fraud alert request can include an alert on a credit file for ___ year(s) and ____year(s) if a police report is filed and submitted to the CRA

Answer 33

1/7

Question 34

fcra was permanently extended by the Fair and Accurate Credit Transaction Act (FACTA) in

Answer 34

2003

Question 35

the fair credit reporting act (fcra) is title___ of the consumer credit protection act

Answer 35

6

Question 36

Violation of the Fair Housing Act could result in criminal penalties of up to $___ and/or ___ year(s) in prison

Answer 36

100,000/1

Question 37

the home mortgage disclosure act (hmda) requires reporting data by March ___ of the following year

Answer 37

1

Question 38

the min. time a creditor must keep a loan and not sell it to maintain QM status for small creditor QM and Balloon QM is

Answer 38

3 years

Question 39

under the dodd frank act, the max points and fees for a 100K loan or greater qualified mortgage is

Answer 39

3%

Question 40

the dodd frank act title ___ regulates the mortgage industry

Answer 40

4

Question 41

the potential criminal penalty for mortgage fraud is up to $____ and ____ in prison or both

Answer 41

1million, 30 years

Question 42

per safe act, the regulatory department over residential mortgage financing can charge a civil penalty for non-compliance up to $____ per violation

Answer 42

25K

Question 43

a loan that exceeds the hoepa thresholds for apr and points and fees is subject to section ___ of TILA/reg Z

Answer 43

32

Question 44

under hoepa, if points and fees charged by the lender exceed ____% of the loan amount then the loan is a high cost loan

Answer 44

5%

Question 45

TILA is title ____ of the Consumer Credit Protection Act

Answer 45

1

Question 46

the record retention period for retaining TILA disclosures is ___

Answer 46

2 years

Question 47

under TILA, the civil penalty for a class action suit is $____ or ___% of net worth whichever is less

Answer 47

500K or 1%

Question 48

the criminal penalty for violating TILA is up to $___ fine and/or ___ years in prison

Answer 48

5K/1

Question 49

if a loan is a HPML, then the min. period to escrow for taxes and insurance regardless of the LTV is ___ years

Answer 49

5

Question 50

under respa, a services must acknowledge a written request from a borrower within ___ days and respond to the issue within ___ days

Answer 50

5/30

Question 51

respa does not cover loans on properties that are ___ acres or more

Answer 51

25

Question 52

the criminal penalty for violating respa is up to $___ and ___ year in prison or both

Answer 52

$10K/1

Question 53

according to TRID, a revised loan estimate must be delivered to the applicant no later than ___ days prior to consummation

Answer 53

4

Question 54

under TRID, the period to provide a refund for a tolerance violation on the LE is ____days after consummation

Answer 54

60

Question 55

under TRID, the borrower has the right to review the closing disclosure ___ day(s) before consummation

Answer 55

1

Question 56

most 3rd party fees on the Loan Estimate (LE) have a ___% tolerance

Answer 56

10

Question 57

respa records must be retained for a period of ___ years

Answer 57

5

Question 58

usda income limits are 115% of

Answer 58

us median income

Question 59

the usda housing expense ratio and dti ratios are

Answer 59

29/41

Question 60

for usda loan what is the upfront guarantee fee and the annual guarantee fee; is it refundable

Answer 60

upfront is 1% of the loan amount; .35% of the unpaid principal balance for the life of the loan; non-refundable

Question 61

What is MSL

Answer 61

Model State Law, created to assist states with the implementation of the SAFE Act on a state level

Question 62

What is the CSBS

Answer 62

Conference of State Bank Supervisors

Question 63

What is the AARMR?

Answer 63

American Association of Residential Mortgage Regulators

Question 64

Who enforces the Dodd Frank Act?

Answer 64

the CFPB

Question 65

The SAFE Act is Reg __ for non-depository institutions and Reg ___ for depository institutions

Answer 65

H/G

Question 66

The safe act is title ___ of HERA

Answer 66

5

Question 67

What does NMLS stand for

Answer 67

Nationwide Mortgage Licensing System

Question 68

Independent contractor processors and underwriters must

Answer 68

register as a loan originator and obtain an unique identifier from the NMLSR and maintain a valid license from a state

Question 69

the unique identifier must be included on:

Answer 69

credit application, note or loan contract, business cards, email, security instrument, applicable advertising

Question 70

What is the deed related to

Answer 70

sale

Question 71

what is the mortgage related to

Answer 71

loan

Question 72

typically a lender will allow for what type of power of attorney in real estate transactions

Answer 72

specific power of attorney

Question 73

TRID applies to lenders who close more than ___ loans annually

Answer 73

5

Question 74

deed of trust is mostly used in a ___ theory state

Answer 74

title

Question 75

mortgage is mostly used in a ___theory state

Answer 75

lien

Question 76

non conforming loans are not purchased by fannie & Freddie and are generally purchased by

Answer 76

private investors

Question 77

the fannie mae conventional conforming loan limit for 2020 is

Answer 77

510,400

Question 78

conventional conforming loans are not backed by the

Answer 78

federal government

Question 79

conventional conforming loans are not backed by the

Answer 79

federal government

Question 80

nonconforming loans exceed the:

Answer 80

max limit for conforming set by fannie/freddie

Question 81

why are conventional loans not assumable?

Answer 81

they have a due on sale clause

Question 82

negative amortization is:

Answer 82

interest is deferred during a period of the loan and the borrower still owes the deferred amount and the principal has increased

Question 83

interest only loans are:

Answer 83

where p&i payments are due just the interest is paid. the principal remains the same when an interest only payment is paid.

Question 84

home mortgage disclosure act ensures

Answer 84

fairness on a larger scale by looking at patterns of discrimination

Question 85

gramm, leach, Bliley act protects consumers information from

Answer 85

identity theft

Question 86

fair and accurate credit transaction act protects consumers information from

Answer 86

identity thieves

Question 87

fair and accurate credit transaction act protects consumers information from

Answer 87

identity thieves

Question 88

fair credit reporting act ensures accuracy of credit related information and how its

Answer 88

collected and reported

Question 89

homeowners protection act (hpa) ensures the right to have what terminated

Answer 89

private mortgage insurance

Question 90

telemarketing sales rule ensures the right to

Answer 90

place a number on a registry avoid solicitations called Do not Call list

Question 91

National flood insurance program ensures the requirement to carry flood insurance when a consumers structure is in an area that has ___% change of flood waters in any given year

Answer 91

1%

Question 92

Mortgage Acts and Practices (MAP) regulates the advertising practices of what type of institution?

Answer 92

requires non-depository institutions to avoid deceptive advertising when promoting mortgage loan products

Question 93

Mortgage Acts and Practices (MAP) regulates the advertising practices of what type of institution?

Answer 93

requires non-depository institutions to avoid deceptive advertising when promoting mortgage loan products

Question 94

RESPA regulations and disclosures related to:

Answer 94

the cost of services

Question 95

TILA regulations and disclosures relating to:

Answer 95

the cost of financing

Question 96

TRID regulations and disclosures for lenders that close more than ____ annually

Answer 96

5 loans

Question 97

Home Ownership and Equity Protection Act (HOEPA) and HPML regulations and disclosures for lenders that offer loans that exceed

Answer 97

thresholds like interest rates and fees

Question 98

fully indexed rate means

Answer 98

the interest rate based on the index + margin

Question 99

apr is

Answer 99

the amount finances and the cost to finances

Question 100

qm points and fees are limited to

Answer 100

3% for 109K+ loans

Question 101

the dti for a qm loan is

Answer 101

43%

Question 102

the penalty for violating gramm leach Bliley act is

Answer 102

up to 100K for financial institutions and criminal penalties up to 5 years

Question 103

under respa section 10 the lender has ___days to deliver the initial escrow statement

Answer 103

45