Quiz Flashcards

0
Q

The truth in lending act does not include

A

Appraisal fees. Appraisal fees are not considered finance charges in a residential mortgage loan

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1
Q

The truth in lending act requires disclosure to an applicant of

A

Discount points to be paid to the lender. Discount points are a finance charge

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2
Q

The principal agent problem refers to

A

The relative lack of consequences for a lenders agent (mortgage broker or loan originator) in the mortgage transaction.

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3
Q

Which document advises the consumer not to provide false information in relation to his loan application

A

The HUD special information booklet

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4
Q

ECOA requires that

A

An applicant must be given notification of the status of his loan application within 30 days

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5
Q

According to TILA a variation up to what amount is permitted for the annual percentage rate in a regular fixed mortgage transaction

A

1/8%

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6
Q

If the lender determines at any time during the life of the loan that the property securing the loan is located in a special flood hazard area and is not covered by flood insurance, then

A

The lender may force place the insurance coverage if the borrower does not promptly purchase it

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7
Q

When must loan applicants receive an adverse action notice if they cannot qualify for a loan

A

Within 30 days of the loan application

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8
Q

The practice of directing a borrower toward a subprime loan when he could qualify for a more standard loan is called

A

Steering

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9
Q

Before providing then GFE, it will be assumed that the loan originator has collected what 6 items

A
Borrowers name
SS #
Gross monthly income
Property address
Estimate value of property
Amount of mortgage loan sought
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10
Q

The section of the Uniform Residential Loan Application titled “information for government monitoring purposes”

A

Must nite the applicants sex, race and ethnicity, based on the lenders visual observation or the applicants surname if the applicant refuses to provide this information

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11
Q

Under the bank secrecy act, each institution must develop a written ______ compliance program, which must be approved by the institutions board of directors

A

Anti-money laundering

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12
Q

Form #1003 is the

A
Uniform Residential Loan Application
Fannie Mae (1003)
Freddie Mac (65)
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13
Q

The minimum number of comps needed for a residential mortgage appraisal is

A

3

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14
Q

A loan secured by vacant or unimproved property is covered under RESPA only if

A

The loan proceeds will be used to construct or place a structure or a manufactured home on the real property within 2 years from the date of the settlement of the loan. RESPA does not apply to the extension of credit primarily for business, commercial or agricultural purposes

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15
Q

Foreclosure is initiated on a consumers principle dwelling that secures a credit obligation. 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

A

$35

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16
Q

Regulation Z requires that an ad stating the down payment for a closed-end mortgage must include

A

Terms of the repayment of the loan

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17
Q

A loan originator who prides a revised GFE must retain documentation for the reason he had to provide a new GFE for at least

A

3 years after the settlement

18
Q

The ARM index based on the interest expenses on savings deposits reported by member savings banks in the federal home loan bank system’s 11th district is

A

The COFI

Cost Of Funds Index

19
Q

The borrower is obtaining a loan to purchase a new home. Settlement is anticipated to occur 90 calendar days from the time the GFE is provided. The loan originator may provide the initial GFE with a disclosure that he may issue a revised GFE anytime up until

A

60 calendar days prior to closing

20
Q

Examples of prohibitive misleading advertising include any comparison between any rate or payment that will be available for a period less than _______ ; and any actual or hypothetical rate or payment

A

The full length of the mortgage credit product

21
Q

In a mortgage transaction subject to RESPA that is secured by the consumers dwelling, a TILA Disclosure must be delivered or mailed within 3 business days after receipt of a written application and no later than

A

The 7th business day before the transaction is consummated

22
Q

Employment and income documentation is generally valid for no more than how many months prior to the date of the mortgage note

A

4 months

120 days

23
Q

Within how many business days of receiving a mortgage loan application must a loan originator provide the applicant with the Special Information Booklet

A

3 business days

24
Q

In order to discourage appraisal fraud caused by loan originator pressure, the Federal Housing Administration (FHA) discourages flipping by determining that a property resold within _____ days from the last sale is not eligible for FHA financing.

A

90 days

25
Q

The statement “You are not required to complete this agreement merely because you have received these disclosures or signed a loan application”, is required by

A

Regulation Z on TILA disclosures and redisclosures

26
Q

ECOA and Regulation B provide that, for qualifying purposes, a creditor cannot ask an applicant about

A

Race or sex

27
Q

The primary purpose of the Truth In Lending Act (TILA) is to

A

Ensure consumers are given disclosures of credit terms

28
Q

An originating lender may be required to return the SRP (service release premium)

A

If the borrower defaults within the first 3 months

29
Q

A licensee who takes unreasonable advantage of a consumers lack of understanding of the material risk of a mortgage loan product would be guilty of

A

An abusive act or practice

30
Q

Who determines if flood insurance is required for a particular property

A

The lender

31
Q

A home builder advertises that it will finance the homes it builds. What additional information must be in the ad in order to comply with the TILA

A

Nothing

32
Q

When a TIL Disclosure is mailed, the applicant is considered to have received it

A

3 business days after the mailing

33
Q

Which of the most common types of fraud typically relates to loan documentation

A

Occupancy, employment and income misrepresentation

34
Q

RESPA does not require lender disclosures of closing costs and procedures for what home loan

A

Temporary construction loans

35
Q

TILA provides that the APR advertised for a mortgage loan can deviate form the actual rate being offered to customers by

A

0%

36
Q

The practice of advertising and adjustable rate mortgage as a fixed rate mortgage is a violation that is termed

A

Bait and Switch

37
Q

What is not required to be disclosed under the TILA

A

Title charges

38
Q

In a loan transaction involving a mortgage broker, then

A

The lender is responsible for ascertaining whether the GFE has been provided. The GFE may be provided by either the lender or the mortgage broker

39
Q

In regard to money laundering, the process of separating the criminal proceeds from their criminal origins using financial transactions in ine or more accounts is called

A

Layering

40
Q

The TILA provides that a lender refinancing a residential property must give the borrower

A

A new TIL Disclosure for the new loan

41
Q

An Alt-A loan

A

Is a loan made to a borrower with less than prime credit or lack of supporting documentation

42
Q

What is true of a promissory mortgage note

A

It gives a lender a promise to repay the money borrowed with interest

43
Q

A trigger term is the

A

Amount or percentage of any DOWN itiidositutkpypppprueuyyt
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Kithe amount of any finance charge