NMLS Study Guide 5

  1. The Fair Credit Reporting Act is implemented by regulation
    V
  2. Which regulation prohibits MLOs from influencing an appraiser to overstate the value of a home in order to get a closed-end loan on the borrower's primary residence approved?
    Regulation Z TILA
  3. Federal Fair Housing Act is overseen by who?
    the Department of Housing and Urban Development (HUD).
  4. Under ECOA, providing different terms of financing for a potential borrower who has poor credit scores due to a recent bankruptcy is considered
    acceptable
  5. Prior to the 2008 collapse, which category of loan programs were made available to many borrowers by taking advantage of the relaxed lending requirements and guidelines?
    Alt-A
  6. A loan generally CANNOT be considered a qualified mortgage (QM) if the points and fees paid by the consumer exceed _____ percent (%) of the total loan amount.
    3%
  7. The income housing expense and total debt to income ratios for conventional loans are
    28% and 36%.
  8. Funding for a construction loan is usually made
    periodically, as the building is constructed.
  9. What does the U.S. Department of Veteran's Affairs (VA) do?
    guarantees residential loans for veterans.
  10. What may be used to convert the construction loan into permanent financing?
    modification agreement
  11. At what LTV is a borrower required to have mortgage insurance on a USDA loan?
    Mortgage insurance is never required. Instead they use a one time guarantee fee.
  12. What typical cause of delinquency is the most difficult to prove?
    addiction
  13. under what circumstances can MIP on FHA loans be refunded?
    if the loan is refinanced within three years.
  14. What type of mortgage is insured by a government agency?
    FHA
  15. When applying for an FHA mortgage, what item must be brought to a satisfactory condition in order for the borrower to receive an approval?
    defaulted student loan
  16. FHA loan ratios?
    31, 43
  17. In terms of a mortgage loan closing, conveyance is best described as
    the transfer of title through the deed.
  18. The Home Ownership and Equity Protection Act gives borrowers with high-cost loans ____ days to rescind the loan.
    three business
  19. A Qualified Mortgage (QM) places a limit of the fees a lender can charge a borrower for compensation on a residential mortgage loan. These fees generally cannot exceed____ of the total amount borrowed.
    3.0%
  20. Steering consumers to loan products that would result in greater compensation for a mortgage loan originator is prohibited by what legislation?
    Dodd-Frank Act
  21. Melissa intentionally tells her mortgage broker from whom she's trying to secure a home loan that she receives $1,200 each month in child support, though it's really only $800. This is an example of
    material misstatement.
  22. Each state's regulatory authority must establish procedures for
    examining records of loan originators.
  23. Which specifically requires someone to be licensed?
    charging a fee
  24. Which information is NOT required to be included on the Closing Disclosure?
    property appraised value
  25. According to the Truth in Lending Act, what would be EXCLUDED from the finance charge?
    seller's points
  26. What entity created the Uniform Residential Loan Application, form 1003?
    Fannie Mae
  27. 10% is required on an FHA when FICO is below?
    579
  28. To calculate the housing expense ratio for an FHA-insured loan, you take stable monthly income and multiply by
    31%
  29. What is the maximum seller concession for a VA loan?
    4% and reasonable (2) discount points
  30. What type of loans have a funding fee? Can it be financed?
    VA, yes
Author
cduvall
ID
335866
Card Set
NMLS Study Guide 5
Description
nmls
Updated