Missed questions Flashcards
An Adjustable Rate Mortgage (ARM) is a ____________ mortgage product.
non-traditional
Gary is an applicant for a section 502 guaranteed loan. The AMI for his community is $45,000. With what income level would Gary bebe eligible for the section 502 loan?
$51,750*
*On USDA 502 loans the household income cannot exceed 115% of the AMI. $45,000 x 115% = $51,750.
Creditor X has delivered a CD to the borrower in a timely manner, and the loan has closed and funded. After receiving the executed documents back from the settlement agent, Creditor X notices a tolerance violation with a fee between the LE and the CD. How long does Creditor X have to reimburse the borrower for the overage before being considered in violation of TRID?
60 days after noticing the violation
The following are TILA required disclosures except:
A. CHARM booklet
B. Notice of adverse action
C. Right to rescind
D. Loan Estimate
B. Notice of adverse action
Which of the following would convey a property?
A. Deed rider
B. Warranty deed
C. None
D. Deed of trust
B. Warranty deed
___________ occurs when a loan originator receives direct compensation from a borrower and additional compensation from a creditor in the same mortgage loan transaction.
Dual compensation
It is ethical for a mortgage broker to offer a loan at a rate higher than the best rate available to the borrower:
A. When the borrower is unaware and won’t know
B. Never
C. If the lender agrees to subsidize the broker fees
D. If the borrower chooses the rate in order to secure a borrower credit for closing costs
D. If the borrower chooses the rate in order to secure a borrower credit for closing costs
If a financial institution intends to share consumer information with nonaffiliated third parties an initial privacy notice is due to a consumer at what point?
No later than the time at which the customer relationship is established.
When a seller provides all or part of the financing for the borrower in order to finance a purchase transaction, it is known as a ________________.
seller carry-back
Which of the following conditions is not an FHA requirement used to prevent illegal property flipping?
A. Owner of record is the seller of a property resale within 3-6 months of the initial sale.
B. Require a minimum down payment (ie 20%) paid to the buyer.
C. Require a second appraisal for a property resale within 3-6 months of an initial sale.
D. Seller owns the property for at least 3 months.
B. Require a minimum down payment (ie 20%) paid to the buyer.
The finance charge is the total cost of ____________________________.
the loan in dollars , including points and mortgage insurance
According to HOEPA what must be established for a Higher Priced Loan?
An escrow account for taxes and insurance payments.
In general, what is the best way to verify a borrowers rental income?
Obtain copies of the borrowers tax forms including Schedule E.
An Assumption Clause allows the buyer to __________________.
assume the sellers mortgage
In a mortgage transaction subject to RESPA that is secured by the consumers dwelling, a Loan Estimate must be delivered or mailed within 3 business days after a receipt of a written application and no later than the ___________________________.
Seventh business day before the transaction is consummated
