Pennsylvania Mortgage Licensing Act Practice Questions

  1. Act 31 of 2009 amended the Mortgage Licensing Act of 2008 for the main purpose of:




    B. implementing the federal Secure and Fair Enforcement for Mortgage Licensing Act
  2. Due to 2009 amendments to definitions, the Mortgage Licensing Act now covers the following:




    B. Construction loans and mobile home loans
  3. An applicant for a mortgage loan originator license is required to complete how many hours of pre-licensure education?




    A. 20 hours
  4. The Mortgage Act applies to which of the following types of mortgage loans?




    D. all of the above
  5. Mortgage lenders applying for licensure must prove they will maintain a net worth of at least:




    D. $250,000
  6. A licensed mortgage loan correspondent is authorized under the Mortgage Licensing Act to perform all of the following except:




    A. offer credit life insurance products to borrowers
  7. A study by the Pennsylvania Department of Banking found that rising foreclosures in the state are linked to which of the following?




    B. abusive lending practices
  8. Out-of-state licensees are required to maintain at least one physical office in the state of Pennsylvania.

    a. True
    b. False
    b. false
  9. If a Consumer Discount Company acts as a loan correspondent or broker, it is considered____________from the provisions of the Mortgage Act.




    B. partially exempt
  10. Complaints against out-of-state licensees must be filed with:




    D. The Department of Banking
  11. An individual renewing an application for licensure as a mortgage originator must provide proof of how many hours of continuing education?




    B. 8 hours
  12. Pennsylvania's Mortgage Act includes all but which of the following in its definition of open-ended loans?




    D. the loan credit is closed when the balance is paid in its entirety
  13. Adequate supervision of mortgage originators by mortgage lenders, loan correspondents, and brokers includes all but 1 of the following responsibilities:




    D. providing notice, within 30 days, to other mortgage loan businesses in the state of any illegal action by a mortgage originator/employee
  14. The Mortgage Licensing Act requires licensees to obtain prior approval from the Department for all but 1 of the following actions:




    D. changing the location of a business
  15. Licensed mortgage brokers are required to indicate which of the following in an advertisement?




    B. that they are licensed by the Pennsylvania Department of Banking
  16. The fee that a mortgage loan correspondent must pay to renew a license is:




    C. $750
  17. The Department of Banking does not have the power to:




    B. issue regulations under the Home Ownership and Equity Protection Act
  18. Which of the following authorizations do both loan correspondents and mortgage brokers share under the Mortgage Licensing Act?




    D. the right to collect and charge fees
  19. The Department must issue a decision on a license application within:




    D. 60 days, unless it extends its review for an additional 30-day period
  20. An applicant for a mortgage originator license mmust achieve a score of______or better on the written pre-licensing test to pass.




    C. 75%
  21. The factors that the Department may consider in making a determination regarding an applicant's financial responsibility include all except:




    D. current outstanding judgments as a result of medical expenses
  22. What is the minimum surety bond requirement for a mortgage originator?




    D. $25,000
  23. Under the Mortgage Licensing Act, mortgage originators are only permitted to work for one employer engaged in the mortgage business.

    a. True
    b. False
    a. True
  24. The Department can deny a mortgage originator licensure for all but which of the following reasons?




    D. lack of experience in the financial industry
  25. Which of the following are authorized to issue lock-in agreements in their own name?




    C. mortgage lenders
  26. The Mortgage Licensing Act requires a licensee to respond to a borrower's request for a loan statement within?




    D. 10 days
  27. Lenders who make secondary mortgage loans are permitted to charge an origination fee of up to:




    C. 3%
  28. According to the Mortgage Licensing Act records may be kept:




    C. only at the licensee's principal office
  29. The Mortgage Licensing Act requires at least one individual who is not a mortgage originator to complete 8 hours of continuing education annually.

    a. True
    b. False
    a. True
  30. Lock-in agreements must include all but which of the following:




    C. the mortgage broker's business information
  31. Pennsylvania Predatory Lending

    Pennsylvania's Consumer Equity Protection Act is significantly similar to which of the following federal laws?




    A. HOEPA
  32. Pennsylvania Predatory Lending

    Pennsylvania's Consumer Equity Protection Act specifies the definition of a covered mortgage loan. This definition includes all but which of the following?




    B. mortgage loan is originated by a broker
  33. Pennsylvania Predatory Lending

    The Consumer Equity Protection Act and federal regulations would include which of the following in the definition of "points and fees"?




    A. settlement fees, when the lender requires use of a specific settlement agent
  34. Pennsylvania Predatory Lending

    The Consumer Equity Protection Act requires the Cautionary Notice to Borrower disclosure to be provided to the borrower at what point during the loan transaction?




    D. 3 days prior to settlement
  35. Pennsylvania Predatory Lending

    What purpose does the Insurance Notice to Borrowers disclosure serve?




    C. it is used to advise borrowers that they have elected to purchase optional insurance products in conjunction with their loan
  36. Pennsylvania Predatory Lending

    Pennsylvania's "no loan flipping" regulation prohibits lenders from charging points in connection with refinancing a loan that is less than_______from the date of origination.




    A. 12 months
  37. Pennsylvania Predatory Lending

    Pennsylvania law prohibits loan payments made directly to a home improvement contractor. All but which of the following are permissible alternatives?




    A. payment is placed in an account established by the lender in the contractor's name until the home improvements are completed
  38. Pennsylvania Predatory Lending

    Pennsylvania's prohibition against equity based lending requires a lender to ensure that a borrower has the ability to repay the loan. Payments cannot exceed what percentage of the borrower's gross monthly income?




    D. 50%
  39. Pennsylvania Predatory Lending

    The Consumer Equity Protection Act prohibits balloon payment terms in a loan transaction unless the balloon payment isn't due for at least_______after the consummation of the loan.




    A. 10 years
  40. Pennsylvania Predatory Lending

    The Pennsylvania Department of Banking is authorized to impose penalities of up to_______per violation for violations of the Consumer Equity Protection Act.




    A. $2,000
Author
Holly
ID
317
Card Set
Pennsylvania Mortgage Licensing Act Practice Questions
Description
Pennsylvania Mortgage Licensing Act Practice Questions
Updated