MLO Activities

Question 1

What’s another name for Form 1003?

Answer 1

Uniform Residential Loan Application

Question 2

What’s found under Section I of the 1003?

Answer 2

Type of mortgage & terms of the loan

Question 3

What’s found under Section II of the 1003?

Answer 3

Property Information & purpose of the loan

Question 4

What’s found under Section III of the 1003?

Answer 4

Borrower Information

Question 5

What’s found under Section IV of the 1003?

Answer 5

Employment Information

Question 6

What’s found under Section V of the 1003?

Answer 6

Monthly Income & Combined Housing Expense Information

Question 7

What’s found under Section VI of the 1003?

Answer 7

Assets & Liabilities

Question 8

What’s found under Section VII of the 1003?

Answer 8

Details of Transaction

Question 9

What’s found under Section VIII of the 1003?

Answer 9

Declarations

Question 10

What’s found under Section IX of the 1003?

Answer 10

Acknowledgment & Agreement

Question 11

What’s found under Section X of the 1003?

Answer 11

Information for government monitoring purposes

Question 12

What are some example of Liquid Assests?

Answer 12

Deposit or “Earnest Money”
Cash
Checking/Savings Accounts
Stocks & Bonds

Question 13

What are some examples of Non-Liquid Assets?

Answer 13

Real Estate
Retirement Accounts
Net worth of business
Automobiles

Question 14

Examples of Liabilities that would need to be accounted for?

Answer 14

Medical bill debt
Credit Cards
Mortgages
Judgments
Consumer Loans
Student Loans
Alimony Payments
Child Support Payments

Question 15

What does Title 18, Section 1001 state?

Answer 15

It’s a crime to knowingly & willingly make any verbal or written statement to the government that’s MATERIALLY false, fictitious, or fraudulent

Question 16

Penalty for violating Title 18, Section 1001?

Answer 16

5 year jail term

Question 17

Penalty for committing mortgage fraud?

Answer 17

Up to 30 years in prison, $1,000,000 fine or BOTH

Question 18

What’s the difference between Fee Simple & Lease Hold?

Answer 18

Fee Simple - owner is entitled to the entire property, with unconditional power of disposition during their life, and passes on to their descendants upon death

Lease Hold - estate is held under a lease, for a fixed number of years

Question 19

What’s Form 1006?

Answer 19

Verification of Deposit (VOD), offered by Fannie Mae

Question 20

“Your Home Loan Toolkit: A step-by-step guide”

Required under which law/act?

Answer 20

RESPA

Question 21

“Your Home Loan Toolkit: A step-by-step guide”

When is it required to be disclosed?

Answer 21

within 3 business days after the completion of a loan application

Question 22

CHARM Booklet

Required under which law/act, and for what type of loans?

Answer 22

TILA

ARMs

Question 23

CHARM Booklet

When is it required to be disclosed?

Answer 23

within 3 business days after the completion of a loan application

Question 24

“When Your Home is on the Line: What you should know about Home Equity Lines of Credit”

Required by which law/act?

Answer 24

TILA

Question 25

"When Your Home is on the Line: What you should know about Home Equity Lines of Credit" When is it required to be disclosed?

Answer 25

Due at the time an application is provided to a potential borrower

Question 26

List of Home-ownership Counseling Organizations Required by which law/act?

Answer 26

RESPA

Question 27

List of Home-ownership Counseling Organizations When is it required to be disclosed?

Answer 27

within 3 business days after receiving a completed loan application

Question 28

List of Home-ownership Counseling Organizations Requirements for the list (proximity to the consumer & age of the list)?

Answer 28

Must be local to the consumer List may NOT be more than 30 days old

Question 29

What are the 4 Pre-closing Disclosures that may be required?

Answer 29

Loan Estimate Closing Disclosure Affiliated Business Disclosure Re-disclosure of APR

Question 30

When is the Loan Estimate Due?

Answer 30

Within 3 business days of receiving a loan application, and no later than 7 business days prior to consummation (closing)

Question 31

When is the Closing Disclosure Due?

Answer 31

No later than 3 business days prior to consummation (closing)

Question 32

When is the Affiliated Business Disclosure Due?

Answer 32

At the time of referral

Question 33

When is the Re-disclosure of APR due?

Answer 33

3 business days prior to consummation (closing)

Question 34

Post Closings Disclosure Initial Escrow Account Statement - When is it due and what must it include?

Answer 34

Due 45-days after closing Must include estimate of taxes and insurance fees required within the next 12-months

Question 35

Post Closings Disclosure Escrow Closing Notice - When is it due?

Answer 35

30 days before an account closes

Question 36

Post Closings Disclosure Initial Rate Change Disclosure - What types of loans, and date range it can be provided before the rate change occurs?

Answer 36

ARMs 210 - 240 days