21-40 Flashcards
Which of the following is NOT included as a protected class by the Equal Credit Opportunity Act?
Immigration Status
Who must receive a Notice of Right to Rescind in a refinance transaction?
Anyone with an ownership interest in the property
Under what circumstances is a creditor permitted to provide a consumer with an updated Loan Estimate?
Revisions to the credit terms or the settlement are requested by the consumer
A subordination clause in a mortgage:
allows a lender to move to or take a lower lien position.
Where do the funds for FHA loans come from?
Approved lenders
An applicant for a mortgage has recurring monthly debt of $425 and a gross monthly income of $3,850. For a conforming loan, what is the maximum house payment—including principal, interest, taxes, and insurance—for which she qualifies?
$961.00
The term “registered loan originator,” as defined under the SAFE Act, means any individual who meets the definition of loan originator and is an employee of:
A depository institution regulated by a federal banking agency.
Ralph has applied for a residential mortgage loan. His application indicates that he has worked for his mother’s corporation for the past 15 years as a W-2 employee. Ralph recently received and holds 20% of the corporation’s stock. What documentation should be used to verify his employment?
Two years personal tax returns since he is employed by a family member
To comply with the FACTA, a Residential mortgage loan originator should:
Implement a written Identity Theft Prevention Program.
The SAFE Act requires all MLOs seeking state licensure to pass the NMLS-developed Mortgage Loan Originator Test with a score of:
75% or better.
VA loans allow for a maximum LTV of what percent?
100%
A buyer makes an offer of $156,000 on a house that was appraised for $162,000. If the seller accepts his offer, what is the minimum down payment required from the buyer for an FHA loan?
$5,460
A loan processor or underwriter who is an independent contractor may not engage in the activities of a loan processor or underwriter unless such independent contractor loan processor or underwriter:
obtains and maintains a license by the NMLS as an independent contractor processor or underwriter.
For an individual to be eligible for a loan originator license, a state must require and find, at a minimum, that an individual:
Has never had a loan originator license revoked in any governmental jurisdiction.
John has purchased a home for a sales price of $300,000. He has been approved for a mortgage with an 85% LTV and a loan amount of $255,000. What is the maximum amount the real estate agent may contribute toward the borrower’s settlement costs per FNMA guidelines?
$18,000
Market value can best be defined as a property’s:
Highest price likely to be paid for a property.
What is the name of a closed-end, first lien, consumer credit transaction secured by the consumer’s principal dwelling with an annual percentage rate that exceeds the average prime offer rate by 1.5 or more percentage points?
Higher-Priced loan
What is the name of the independent entity through which mortgage lenders order residential real estate valuation services for properties on which they are considering extending loans to homebuyers?
Appraisal Management Company
An applicant for a mortgage loan is a salaried employee who is paid $1,350 every two weeks. In addition, she indicates that she receives $500 a month in alimony. What is the gross monthly income you can use to qualify her?
$3,425
When does the creditor have to provide the Closing Disclosure to the consumer?
The creditor must ensure that the consumer receives the Closing Disclosure no later than three days before consummation.
