-
The interest rate stated on the financing instrument is the
note rate.
-
A Direct Endorser is a lender who is authorized to underwrite what type of loan applications?
FHA
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The fact that a borrower's income will require verification explains what is meant by the underwriting concept of
capacity
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Which rule allows consumers to opt out of having their private information shared?
Financial Privacy Rule
-
According to the Truth in Lending Act, which of these would be EXCLUDED from the finance charge?
seller's points
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The Fair Housing Act requires what to be posted in all institutions where mortgage loans are made?
Equal Housing Opportunity House logo
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According to 2013 updates related to the qualified mortgage definition, what is the maximum percentage (%) limit on the total obligation debt-to-income (DTI) ratio for a qualified mortgage?
43%
-
The Federal National Mortgage Association (Fannie Mae) is designed to
increase availability of money to primary lenders.
-
The Fair Housing Act requires a lender to use what term in any advertisement broadcast over the airwaves?
Equal Housing Lender
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According to the 2013 amendment to TILA related to loan originator compensation requirements, a loan originator must retain records sufficient to evidence all compensation it pays to a loan originator for ____ years after the date of payment.
3
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A Mortgage lender is any person who
makes a residential mortgage loan OR lends money secured by a mortgage or deed of trust.
-
Rural Development loans are administered by what government agency?
Department of Agriculture
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Which type of survey marks out the driveways, walks, and foundation?
construction
-
The NMLS was created by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR), beginning operations in
2008
-
The annual percentage rate (APR) is also referred to as
effective rate of interest.
-
What methods might be used to determine the value of a duplex being purchased as an investment property?
cost approach, income approach, or sales comparison approach
-
A buyer of a house with a sales price of $100,000 is paying a $10,000 down payment as well as 2 discount points and 2 points for loan origination fees. What is the total cost of the points?
$3,600
-
What is the first step in taking the loan application?
completing the 1003
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While reviewing a sales contract, you note the sale price as $125,000. The loan amount is $105,000 and buyer's closing costs total $4,720. The seller is completing $2,000 in repairs before closing. What is the acquisition cost of this transaction?
The acquisition cost includes the sale price plus the buyer's closing costs: $125,000 + $4,720 = $129,720
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A borrower who has a FICO score below 580, is required to make a minimum down payment of at least _____% for an FHA loan.
10%
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A mortgage loan originator must make the settlement charges detailed in a Loan Estimate available for how many business days?
The settlement charges in the Loan Estimate must be available for 10 business days.
-
If Bob pays $695.20 for principal and interest every month for 30 years on his $110,000 loan, how much interest will he pay over the life of the loan?
Bob will pay $140,272 in interest for that 30-year loan (695.20 x 12 months x 30 years = $250,272 total payment - $110,000 principal = $140,272 interest).
-
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
Gramm-Leach-Bliley Act.
-
Which monthly debt may not show up on a credit report?
alimony payment
-
According to the interim final rule on Valuation Independence, a creditor who has information about appraiser misconduct must file a report with the
appropriate state licensing authority.
-
After investigating an advertising violation against the High Dollar Mortgage Company, the State Regulatory Authority notifies High Dollar in writing of the disapproval of a particular print ad they have been using. To be in compliance, High Dollar Mortgage Company must
immediately cease publication of the disapproved print advertisement
-
At what point is a lock-in agreement binding?
as soon as both the applicant and the lender sign it
-
A lender can reasonably assume the borrower has the ability to repay a high cost loan if the borrower's scheduled monthly payments on the loan, combined with the scheduled payments for all other debts, do not exceed _____ of the borrower's documented and verified gross monthly income.
43%
-
Loan Originator Compensation Requirements is a set of amendments to which federal Act?
Truth in Lending Act (TILA)
-
The 3/7/3 Rule is associated with which law?
- Regulation Z
- The disclosure and waiting requirements of the Truth in Lending Act are known as the 3/7/3 Rule.
-
If the consumer elects not to have an escrow account:
Disclose zero in that field
-
The Loan ID # is:
The creditor's identification number
-
The 1988: Fair Housing Amendments Act - (Title VIII)--added prohibition of discrimination based on
familial status.
-
One of the many tasks of the Consumer Financial Protection Bureau (CFPB) is to
ensure borrowers understand the fine print that explains the risks involved in using financial services.
-
Which law allows a consumer who has had her credit card used by an identify thief to place a freeze on her credit report?
FACT Act
-
The purpose of the Loan Estimate is to
give the customer an estimate of the closing costs that will be charged on the loan.
-
The requirement that a borrower will have to pay a prepayment penalty must be disclosed under what federal legislation?
TILA
-
An objective of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 is to
eliminate unfair practices relating to compensation paid to mortgage loan originators (The Loan Originator Compensation Rule).
-
Which information is NOT required to be included on the Closing Disclosure?
property appraised value
-
A verification of deposit verifies what?
down payment and/or reserves
-
What does the Federal Housing Administration (FHA) do?
insures mortgage lenders against default through HUD
-
Funds for FHA loans are provided by
qualified lending institutions.
-
Under the SAFE Act, each state has the authority to
write state-specific rules or regulations or adopt procedures related to licensing of persons covered under this Act.
-
A recorded deed or recorded note and mortgage are considered to be a(n)
constructive notice of title.
-
On the Loan Estimate, charges for loan origination services are
summarized
-
An occupancy certificate means the borrower
has permission to move into the home from the zoning department.
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