A7

Question 1

When a borrower is qualifying for a VA guaranteed loan, what would not apply?

Answer 1

PMI

Funding fee, certificate of reasonable value, and certificate of reasonable value all relate to VA loans. PMI does not

Question 2

FHA Title I was created for what reason?

Answer 2

Home Improvement loans

Question 3

The interest on a conventional loan is?

Answer 3

Simple

Question 4

The total amount of the VA guaranteed loan entitlement is?

Answer 4

Determined by Congress

Question 5

A veteren wishes to place a refinance loan on his existing home with a VA loan. The lender will make the loan at 10% and 2 points. What is true.

Answer 5

The veteran may take the loan and pay the points.

Question 6

Is US citizenship required for an FHA insured loan

Answer 6

No, US citizenship is not required

Question 7

The maximum VA loan limit is?

Answer 7

Determined by the lender

Question 8

PMI covers?

Answer 8

Portion of the loan over 80%

Question 9

When a variable rate loan quotes a specific margin, what is true?

Answer 9

The margin is set at the time of the loan

Question 10

The main appeal of FHA loans to the borrower is?

Answer 10

Minimum down payment

Question 11

A variable rate loan is characterized by what?

Answer 11

amortized payments

Question 12

The back-end ratio of a loan would apply to what?

Answer 12

Total monthly obligations divided by gross monthly income

Question 13

When a lender is allowed to determine if a borrower qualifies for FHA insurance the process is called?

Answer 13

Direct Endorsement

Question 14

According to RESPA a lender must disclose what?

Answer 14

If the loan will be sold

Question 15

Which law requires Disclosure of Affiliated Businesses?

Answer 15

RESPA

Question 16

Which law pertains to NO BAIT AND SWITCH advertising

Answer 16

Truth in Lending

Question 17

Which law restricts kickbacks and referrals?

Answer 17

RESPA

Question 18

What is a lender required to give a borrower under RESPA?

Answer 18

Loan estimate and the closing disclosure

Question 19

Who is responsible to deliver the RESPA information to the buyer?

Answer 19

Lender

Question 20

When a new VA loan is created, who pays for the Tax Service Fee

Answer 20

Seller

Question 21

When a buyer obtains a new VA loan, who pays for the document preparation fee?

Answer 21

Seller

Question 22

What must show on a settlement sheet according to RESPA?

Answer 22

Origination fee

Question 23

Which law would govern residential close of escrow disclosures?

Answer 23

Real Estate Settlement Procedures Act

Question 24

When a borrower is qualifying for a VA guaranteed loan, what would not apply?

Answer 24

PMI

Question 25

When a borrower takes a variable rate mortgage, what is true regarding the margain

Answer 25

It remains constant for the life of the loan

Question 26

What would not be covered by Regulation Z

Answer 26

Seller carryback financing

Question 27

What is the most frequently used FHA insured loan?

Answer 27

203B

Question 28

Interest paid on an amortized real estate mortgage is paid…

Answer 28

in arrears

Question 29

APR is regulated by what?

Answer 29

Reg Z

Question 30

According to Reg Z and RESPA what is not prorated in escrow?

Answer 30

Title Insurance

Question 31

What regulation required the lender to show the true interest rate?

Answer 31

Reg Z

Question 32

A three day right to rescind originates from?

Answer 32

Reg Z

Question 33

The purpose of RESPA is to

Answer 33

Disclose a loan estimate in 3 days

Question 34

When a lender’s advertising is considered bait and switch it would be regulated by?

Answer 34

Truth in Lending

Question 35

How do you determine the front end ratio of a loan?

Answer 35

Monthly PITI divided by gross monthly income