20 Hours Class Exam Flashcards
Which is the largest secondary market participant ?
Fannie Mae (FNMA)
Eddie is an individual who is an employee of a mortgage broker. He engages only in processing. What is he?
In house processor and he does not need a license.
Any _________ fee must be placed in an escrow account. That is FDIC insured and in the state conducting business.
3rd party.
A loan originator license is not likely to be issued for ?
A conviction of money laundering that resulted in over a year of imprisonment.
To pass the federal exam you need a score of what?
75%. 87 of 115 questions must be correct.
A _________ clause that permits the lender to call the outstanding balance due and payable should the property be sold by the borrower.
Alienation clause. Also known as the Due on sale clause.
All of the following are required continuing education topics under the safe act, with the exception of?
Mortgage refinancing
Upon approval of his application, Doug’s mortgage license will be issued with an expiration date of ________ for the year it was issued.
December 31st.
A lender who refuses to make loans on properties in certain neighborhoods is using the discriminatory process of ?
Redlining
The homeowners protection act required a mortgage lender to cancel MI when the loan to value ratio reaches _________ % of the original value and the borrower is current.
78%
Which of the following best describes when negative Amortization will occur ? Bonus why?
The payment made does not cover the interest due for that period ?
Bonus: cause the interest gets deferred.
All of the following are considered an acceptable change of circumstance for re-disclosure of borrower paid fees except?
Changes to the origination charge.
As a result of the mortgage disclosure improvement act, how soon can a mortgage close?
On the 7th business day after delivery of required disclosures.
Which would be considered a toxic feature under the qualifying mortgage definition?
Interest only loan.
The APR on a loan estimate for a 30 year fixed rate loan is 6.25%, the APR on a closing disclosure is 6,5%. After re-disclosure the borrower must wait how long ?
3 days
