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State License > MIXED DECK > Flashcards

MIXED DECK Flashcards

1
Q

Are utilities and cell phone considered debt obligation?

A

Monthly utilities and cell phone bills are not included in debt calculations. They are exempt from DTI ratios

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2
Q

What is TRID

A

The TILA and RESPA Integrated Disclosure

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3
Q

Are Alimony, Child Support, Separate Maintenance Payments considered debt obligation?

A

YES, considered debt obligation. When the borrower is legally required for more than 10 months to pay alimony, child support, or maintenance payments.
Note: voluntary payments do not need to be taken into consideration.

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4
Q

Is Business Debt in Borrower’s Name considered debt obligation?

A

NO, not considered debt obligation (when confirmed). A self-employed borrower may claim a monthly obligation (that appears on their personal credit report) is being paid by the borrower’s business. In this instance, you must confirm it was paid by company funds (12 months cancelled checks) and that this was considered in its cash flow analysis of the borrower’s business.

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5
Q

A good payment history under the Home Owners Protection Act (HPA) means no ___ lates in the last 24 months and no _____ lates in the past 12 months.

A

60 day lates in the past 24 months; 30 day lates in the past 12 months

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6
Q

For VA loans, the funding fee for a borrower using their entitlement for the first time putting down less than 5% is

A

2.15%

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7
Q

In the event of default, the VA will guarantee up to ____% of $____

A

25% of $510,400 (conforming loan max amount)

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8
Q

on a va guaranteed loan the max. entitlement that is reflected on the certificate of eligibility is:

A

$36K

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9
Q

The up-front mortgage insurance on a full qualifying FHA loan is:

A

1.75%

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10
Q

The most popular FHA loan program is the Section _____ insured mortgage

A

203B

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11
Q

Max. seller contributions towards closing cost or prepaid items on a FHA loan are:

A

6%

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12
Q

For fannie mae, a borrower can use ___ of stock portfolio account for reserves

A

60%

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13
Q

Fannie Mae requires insurance coverage equiaty to the less of ____% of the insurable value of the improvements as determined by the insurer OR the unpaid principal balance as long as it equals ___% of the insurable value

A

100/80

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14
Q

for fannie mae, income qualifying requires the verification of the most recent ____ days of earnings

A

30

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15
Q

for fannie mae, a limited cash out refi allows the borrower to get cash pack, the lower of $___ or ____%

A

2,000/2%

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16
Q

the exterior only appraisal for a single family unit is a fannie mae form number ____

A

2055

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17
Q

the max seller contributions for an investment property under fannie mae is

A

2%

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18
Q

for fannie mae, if the LTV is equal to or greater than 90% the max. seller contributions is____% of the lower of the sales price or appraised value

A

3%

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19
Q

the number of months non-traditional credit is evaluated for loan approval is:

A

12months

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20
Q

if a debt has no payment associated with the debt, the underwriter will allocate ____ of the debt as a qualifying payment

A

5%

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21
Q

the temporary 2/1 buydown loan means that the note rate is reduced by ____% in year one and ____% in year two

A

2%/1%

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22
Q

A biweekly payment plans has ___ monthly payments in a year

A

13

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23
Q

an adjustable rate mortgage that has a fixed rate for 5 years and can change annually is a ____ ARM. The rate is rounded to the nearest ____

A

5/1; 1/8th

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24
Q

conventional confirming loan limit for a single family unit is

A

510,400 for 2020

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25
Q

liability for violating ECOA could result in a penalty of up to $___ and in a class action law suite $___ and ____% of net worth whichever is less

A

10K, 500K, 1%

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26
Q

ecoa requires a notice of action taken within ___ days of a counter offer that is not accepted

A

90

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27
Q

ecoa requires a copy of an appraisal or any evaluation of the subject property within ___ days prior to the loan closing and ___days after it is determined the loan will not close

A

3/30

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28
Q

the red flag identity theft program is a mandatory program and includes ___ red flag items created by the FTC

A

26

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29
Q

the equal credit opportunity act (ecoa) is title ___ of the consumer credit protection act

A

7

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30
Q

payment history makes up what percentage of the credit score?

A

35%

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31
Q

the range of the credit scores is

A

300-850

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32
Q

under reg v, if a lender collects credit scores on a borrower, the lender discloses the scores to the borrower and must also give ___ reasons for each score.

A

4

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33
Q

a one phone call fraud alert request can include an alert on a credit file for ___ year(s) and ____year(s) if a police report is filed and submitted to the CRA

A

1/7

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34
Q

fcra was permanently extended by the Fair and Accurate Credit Transaction Act (FACTA) in

A

2003

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35
Q

the fair credit reporting act (fcra) is title___ of the consumer credit protection act

A

6

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36
Q

Violation of the Fair Housing Act could result in criminal penalties of up to $___ and/or ___ year(s) in prison

A

100,000/1

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37
Q

the home mortgage disclosure act (hmda) requires reporting data by March ___ of the following year

A

1

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38
Q

the min. time a creditor must keep a loan and not sell it to maintain QM status for small creditor QM and Balloon QM is

A

3 years

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39
Q

under the dodd frank act, the max points and fees for a 100K loan or greater qualified mortgage is

A

3%

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40
Q

the dodd frank act title ___ regulates the mortgage industry

A

4

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41
Q

the potential criminal penalty for mortgage fraud is up to $____ and ____ in prison or both

A

1million, 30 years

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42
Q

per safe act, the regulatory department over residential mortgage financing can charge a civil penalty for non-compliance up to $____ per violation

A

25K

43
Q

a loan that exceeds the hoepa thresholds for apr and points and fees is subject to section ___ of TILA/reg Z

A

32

44
Q

under hoepa, if points and fees charged by the lender exceed ____% of the loan amount then the loan is a high cost loan

A

5%

45
Q

TILA is title ____ of the Consumer Credit Protection Act

A

1

46
Q

the record retention period for retaining TILA disclosures is ___

A

2 years

47
Q

under TILA, the civil penalty for a class action suit is $____ or ___% of net worth whichever is less

A

500K or 1%

48
Q

the criminal penalty for violating TILA is up to $___ fine and/or ___ years in prison

A

5K/1

49
Q

if a loan is a HPML, then the min. period to escrow for taxes and insurance regardless of the LTV is ___ years

A

5

50
Q

under respa, a services must acknowledge a written request from a borrower within ___ days and respond to the issue within ___ days

A

5/30

51
Q

respa does not cover loans on properties that are ___ acres or more

A

25

52
Q

the criminal penalty for violating respa is up to $___ and ___ year in prison or both

A

$10K/1

53
Q

according to TRID, a revised loan estimate must be delivered to the applicant no later than ___ days prior to consummation

A

4

54
Q

under TRID, the period to provide a refund for a tolerance violation on the LE is ____days after consummation

A

60

55
Q

under TRID, the borrower has the right to review the closing disclosure ___ day(s) before consummation

A

1

56
Q

most 3rd party fees on the Loan Estimate (LE) have a ___% tolerance

A

10

57
Q

respa records must be retained for a period of ___ years

A

5

58
Q

usda income limits are 115% of

A

us median income

59
Q

the usda housing expense ratio and dti ratios are

A

29/41

60
Q

for usda loan what is the upfront guarantee fee and the annual guarantee fee; is it refundable

A

upfront is 1% of the loan amount; .35% of the unpaid principal balance for the life of the loan; non-refundable

61
Q

What is MSL

A

Model State Law, created to assist states with the implementation of the SAFE Act on a state level

62
Q

What is the CSBS

A

Conference of State Bank Supervisors

63
Q

What is the AARMR?

A

American Association of Residential Mortgage Regulators

64
Q

Who enforces the Dodd Frank Act?

A

the CFPB

65
Q

The SAFE Act is Reg __ for non-depository institutions and Reg ___ for depository institutions

A

H/G

66
Q

The safe act is title ___ of HERA

A

5

67
Q

What does NMLS stand for

A

Nationwide Mortgage Licensing System

68
Q

Independent contractor processors and underwriters must

A

register as a loan originator and obtain an unique identifier from the NMLSR and maintain a valid license from a state

69
Q

the unique identifier must be included on:

A

credit application, note or loan contract, business cards, email, security instrument, applicable advertising

70
Q

What is the deed related to

A

sale

71
Q

what is the mortgage related to

A

loan

72
Q

typically a lender will allow for what type of power of attorney in real estate transactions

A

specific power of attorney

73
Q

TRID applies to lenders who close more than ___ loans annually

A

5

74
Q

deed of trust is mostly used in a ___ theory state

A

title

75
Q

mortgage is mostly used in a ___theory state

A

lien

76
Q

non conforming loans are not purchased by fannie & Freddie and are generally purchased by

A

private investors

77
Q

the fannie mae conventional conforming loan limit for 2020 is

A

510,400

78
Q

conventional conforming loans are not backed by the

A

federal government

79
Q

conventional conforming loans are not backed by the

A

federal government

80
Q

nonconforming loans exceed the:

A

max limit for conforming set by fannie/freddie

81
Q

why are conventional loans not assumable?

A

they have a due on sale clause

82
Q

negative amortization is:

A

interest is deferred during a period of the loan and the borrower still owes the deferred amount and the principal has increased

83
Q

interest only loans are:

A

where p&i payments are due just the interest is paid. the principal remains the same when an interest only payment is paid.

84
Q

home mortgage disclosure act ensures

A

fairness on a larger scale by looking at patterns of discrimination

85
Q

gramm, leach, Bliley act protects consumers information from

A

identity theft

86
Q

fair and accurate credit transaction act protects consumers information from

A

identity thieves

87
Q

fair and accurate credit transaction act protects consumers information from

A

identity thieves

88
Q

fair credit reporting act ensures accuracy of credit related information and how its

A

collected and reported

89
Q

homeowners protection act (hpa) ensures the right to have what terminated

A

private mortgage insurance

90
Q

telemarketing sales rule ensures the right to

A

place a number on a registry avoid solicitations called Do not Call list

91
Q

National flood insurance program ensures the requirement to carry flood insurance when a consumers structure is in an area that has ___% change of flood waters in any given year

A

1%

92
Q

Mortgage Acts and Practices (MAP) regulates the advertising practices of what type of institution?

A

requires non-depository institutions to avoid deceptive advertising when promoting mortgage loan products

93
Q

Mortgage Acts and Practices (MAP) regulates the advertising practices of what type of institution?

A

requires non-depository institutions to avoid deceptive advertising when promoting mortgage loan products

94
Q

RESPA regulations and disclosures related to:

A

the cost of services

95
Q

TILA regulations and disclosures relating to:

A

the cost of financing

96
Q

TRID regulations and disclosures for lenders that close more than ____ annually

A

5 loans

97
Q

Home Ownership and Equity Protection Act (HOEPA) and HPML regulations and disclosures for lenders that offer loans that exceed

A

thresholds like interest rates and fees

98
Q

fully indexed rate means

A

the interest rate based on the index + margin

99
Q

apr is

A

the amount finances and the cost to finances

100
Q

qm points and fees are limited to

A

3% for 109K+ loans

101
Q

the dti for a qm loan is

A

43%

102
Q

the penalty for violating gramm leach Bliley act is

A

up to 100K for financial institutions and criminal penalties up to 5 years

103
Q

under respa section 10 the lender has ___days to deliver the initial escrow statement

A

45

State License (18 decks)

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