The document spells out that the borrower must repay the loan is called?
1. mortgage
2.binder
3. promissory note
4. contract
promissory note
A contract by which real property is pledged and allows for its transfer in the event of default is a
1. mortgage
2. binder
3. note
4. contract
1. mortgage
The stage of the loan cycle where you verify the borrower's income
1. pre-approval
2. underwriting
3. conditioning
4. processing
processing
An independent specialist who uses competing lender's funds to originate loans is called a
1. mortgage banker
2. wholesaler
3. mortgage broker
4. loan originator
mortgage broker
The residential mortgage where the whole loan is guaranteed by the federal government is a
1. VA loan
2. FHA loan
3. community housing loan
4. affordable housing loan
VA loan
A home's title can be held by a married couple as
1. individual
2. tenancy by entirety
3. married
4. joint survivor
tenancy by entirety
Fannie mae and Freddie Mac are
1. owned and operated by the federal government
2. major secondary market investors
3. government sponsored enterprises
4. all of the above
all of the above
The cycle of the loan where approval takes place is
1. funding
2. originating
3. processing
4. underwriting
underwriting
The loan officer need not be concerned with
1. movement of the bond market
2. the local real estate market
3. secretary of States Regulation B
4. interest rate
secretary of States Regulation B
When disclosing the Good Faith Estimate the loan officer is
1. satisfying a RESPA requirement
2. disclosing what you want from the borrower
3. duplicating the pre-approval disclosure
4. mandating the borrower's commitment
satisfying a RESPA requirement
Ulimately, the appraisal is paid for by
1. the lender
2. wholesaler
3. Fannie Mae & Freddie Mac
4. the borrower
the borrower
The agreement signed by the buyer and seller that spells out the conditions of sale is commonly referred to as the
1.contract
2. offer to purchase
3. purchase agreement
4. all of the above
all of the above
An item never found on a credit report is
a. date of birth
b. race
c. social security number
d. home address
Fees paid to attornys, appraisers, pet inspectors, etc are disclosed at closing on the
a. note
b. truth in lending statement
c. the funding fees disclosure
d. HUD settlement statement
The Truth in Lending Act is interpreted by
B. the Federal Reserve and called Reg Z
The Truth in Lending Act was designed to disclose the
a. total cost of fees and points
b. cost of credit
c. lending patterns of banks
d. brokers' yield spread premium
cost of credit
RESPA limits the
C. amount a lender can hold in escrow
A loan officer can work for more than one broker when
B. never
when selling a home, the law that prohibits discrimination in whom the house is sold to is
D. FHA
The instrument that gives "teeth" to the Note is the
a. 1003
b. deed of trust
c. fiduciary hold harmless
d. mortgage
deed of trust
The legal document that officially states payment, rate and terms of repayment is the
a. mortgage
d. deed of trust
c. debt ratio disclosure
d. promissory note
promissory note
The number of loans a private seller and note holder can make without being licensed is
a. five
b. fifteen
c. three
d. seven
five
The law that prohibits a loan officer from discouraging anyone from applying for a loan is
a. FCRA
b. MLA
c. RESPA
d. ECOA