Minh's 50 question quiz

Question 1

A person wanting a loan originator license in four states must…

Answer 1

Must pass the state component of the license in each state

Question 2

All of the following are included in a finance charge; Loan origination Fee, Closing fee, Appraisal Fee. True or false?

Answer 2

False

Question 3

The homeowners Protection Act states that a borrower has the right to request the cancellation of private mortgage insurance when he pays down his mortgage payment to the point that it equals what?

Answer 3

80 % of the original purchase price or appraised value of the home

Question 4

What is a borrower called in a mortgage transaction?

Answer 4

A mortgagor

Question 5

In a month with 30 days and a purchase closing on the 15th day of the month, how many days of interest would the title agent be required to collect?

Answer 5

16

Question 6

What may an underwriter use as a basis of approving a mortgage loan application?

Answer 6

Likelihood of continued income

Question 7

A loan processor or underwriter who is NOT licensed as a mortgage loan originator may perform all of the following task EXCEPT:

Answer 7

Counsel consumers about available residential mortgage loan rates or terms.

Question 8

Which is NOT an index that is typically used for adjustable rate mortgages?

Answer 8

HELOC

Question 9

When purchasing a home, what is the right of recession period?

Answer 9

No right to rescind

Question 10

A VA appraisal is known as what?

Answer 10

CRV

Question 11

A first lien loan greater than 20,350 would be considered a Section 32 loan if the points and feed are greater than:

Answer 11

5% of the loan amount

Question 12

A borrower receives his adverse action along with his right to receive appraisal notice. The lender provided him a copy of his appraisal but the borrower lost it. He requests another copy6 months later.When should he expect to receive a copy of the appraisal?

Answer 12

Never

Question 13

A questionable fee that is incorporated into the closing cost associated with the loan is a ___fee.

Answer 13

Junk

Question 14

When must the information obtained on the HMDA-Lar (section X of the 1003) be made publicly available?

Answer 14

March 31st of the following year

Question 15

A(n) ____ of title is a written statement by an attorney of title agent determining whether the property is encumbered or has clear and marketable title.

Answer 15

Opinion

Question 16

The FTC Red Flag Rule requires that creditors create and monitor policies applying to red flag rules indicating…

Answer 16

Identity theft

Question 17

A loan applicant decides to withdraw his loan application. He has already paid for his appraisal and requests a copy of it from the lender. Is he entitled to a copy?

Answer 17

Yes, because he has already pad for the appraisal

Question 18

How many years of employment history are required to be disclosed on the mortgage loan application?

Answer 18

Two