Practice Flashcards
Which of the following determines whether flood insurance is required for a property?
The lender
Title company
Appraiser
FEMA
Lender
Which document advises the borrower not to provide false information in relation to his application?
The LE
The CD
The ECOA adverse action notice
The HUD special information booklet
The HUD special information booklet
The primary purpose of TILA is:
To ensure that consumers are given disclosure of credit terms
TILA provides that a lender refinancing a residential property must give the borrower:
A copy of the TIL disclosure for the original loan
Nothing - the law doesn’t apply to refi’s
A new LE if requested
A new LE
A new LE
Within how many days of receiving an application must the LO provide the applicant with a special info booklet?
Three days
RESPA does not require a lender disclosures of closing costs and procedures for which of the following home loans?
FHA loans
Home purchase loans from a lender
Temporary construction loans
Home equity loans
Temporary construction loans. RESPA applies to basically every loan secured by a mortgage.
Employment and income documentation is generally valid for no more than how many months prior to the date of the mortgage note?
2
4
3
1
Four?
Under the rules for the do not call registry, a mortgage broker may make an unsolicited call to a client or customer with whom he has established a business relationship for up to how many months after his last transaction?
18
In a loan transaction involving a mortgage broker, which of the following is true?
A. The mortgage broker is responsible for ascertaining whether the loan estimate has been provided
B. The loan estimate must be provided by the lender
C. The loan estimate must be provided by the mortgage broker
D. The lender is responsible for ascertaining whether the loan estimate has been provided
D
Either can deliver it, but it’s the lender’s responsibility to ensure that it has been provided.
A loan originator who provides a revised loan estimate must retain documentation for the reason he had to provide a new loan estimate for at least:
Three years after settlement
The statement “you are not required to complete disagreement merely because you have received these disclosures are signed the loan application,” is required by:
A. RESPA for all residential mortgage loans
B. ECOA on every loan app
C. Regulation Z on HOEPA loans
D. Regulation Z on conventional mortgage loans
C
The minimum number of comparables Fannie Mae requires for a residential mortgage appraisal is
3
In regard to money laundering, the process of separating the criminal proceeds from their criminal origins using financial transactions in one or more accounts is called:
Layering
In regard to find transfers all of the following would be considered red flags indicating possible illegal activity except:
Transfers to a financial secrecy haven like the Cayman Islands
Transfer activity to a bank in a different US state
Repetitive transfer activities
Transfers in odd amounts
Transfer activity to a bank in a different US state
Under the bank secrecy act, each institution must develop what kind of written compliance program, which must be approved by the institution’s Board of Directors?
Anti-money-laundering compliance program
In order to discourage appraisal fried caused by loan originator pressure, the FHA discourages flipping by determining that the property is not eligible for FHA financing if it is re-sold within how many days from the last sale?
90 days
Which regulation allows a borrower to challenge the value on an appraisal?
ECOA
How long must all commercial communications and transcripts be kept?
2 years
Foreclosure is initiated on a consumer’s principal dwelling that secures a credit application. At this time, the finance charge and other disclosures affected by the finance charge are considered accurate if they are above the amount required to be disclosed or if they are understated by no more than:
$35
TILA requires disclosure of which of the following:
interest rates offered to other borrowers
interest rates offered by other lenders
discount points to be paid to the lender
his credit score
Discount points to be paid to the lender
Which of the most common types of fraud typically relates to loan documentation?
Occupancy
Income
Employment
All of the above
All of the above?
A secured by vacant or unimproved property is covered under RESPA only if:
any construction is financed separately
none of these
The proceeds will be used to construct a home within two years
The loan proceeds are to be used to purchase only the land
C?!
TILA does not include which of the following as finance charges in a residential loan transaction?
A. PMI
B. Settlement/closing fees
C. Mortgage broker fees
D. Appraisal fees
D?
