Random

Question 1

What is the minimum credit score for a FHA 203B program?

Answer 1

500

Question 2

Which loan program offers interest credits?

Answer 2

MCC

Question 3

Dodd Frank contains 16 Titles. Which title is largely about residential mortgage finance?

Answer 3

TITLE XIV–MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT

Question 4

Which Federal Law Prohibits Kickbacks and Unearned fees from being collected?

Answer 4

RESPA

Question 5

Should the lender not be made whole in the foreclosure process, the lender may be able to seek additional relief known as “recourse” through the courts by seeking a [blank].

Answer 5

Deficiency judgment

Question 6

The uniform Residential Loan Application is also known as the [blank]

Answer 6

1003

Question 7

What would the debt to income ratio be for a borrower with $4000 per month in income and total debts including PITI of $1600?

Answer 7

$1600/$4000 = .40 or 40% DT

Question 8

Which entity issues housing bonds?

Answer 8

State Housing Finance Agencies (HFAs)

Question 9

Cash to close, Monthly Payments, and Foreseeable and unforeseeable homeownership expenses are examples of [blank].

Answer 9

Transaction Costs

Question 10

2008 Housing and Economic Recovery Act of 2008 (HERA) established this entity

Answer 10

Federal Housing Finance Agency (FHFA)

Question 11

In Lien Theory states, the real property is pledged to the lending institution which has a lien on the real property as evidence of their interest and evidenced by a [blank].

Answer 11

Evidenced by a Mortgage

Question 12

What is the maximum financing percentage on a VA loan?

Answer 12

100.00%

Question 13

The consumer may receive a revised version of the Loan Estimate no later than _______ DAY(S) prior to consummation.

Answer 13

4

Question 14

Dodd Frank established in the Federal Reserve System, an independent bureau to be known as the [blank], which shall regulate the offering and provision of consumer financial products or services under the Federal consumer financial laws.

Answer 14

Bureau of Consumer Financial Protection

Question 15

At a minimum, how many underwriting factors must a creditor consider when underwriting a Qualified mortgage?

Answer 15

8

Question 16

On a higher priced Balloon transaction, what is the qualifying payment based on?

Answer 16

The maximum payment in the payment schedule, including any balloon payment, for a higher-priced covered transaction

Question 17

Which form(s) did the closing disclosure replace?

Answer 17

HUD-1

Question 18

The [blank] is a contract in which a title company agrees to issue a policy subject to the conditions, exceptions, and exclusions shown in the commitment.

Answer 18

Preliminary Title Commitment

Question 19

For Qualified mortgages, the creditor must underwrite the loan using a the highest possible principal and interest payment that may apply during the first [blank] years of the loan.

Answer 19

5

Question 20

Comparable sales that have closed within the last [blank] months should be used in the appraisal.

Answer 20

12 Months

Question 21

Which disclosure details costs and expenses at application?

Answer 21

Loan Estimate

Question 22

Low initial payments based on a fixed introductory rate, that expires after a short period and then adjusts to a variable index rate, plus a margin for the remaining term of the loan can lead a borrower to [blank]

Answer 22

Payment Shock

Question 23

Which entity administers Section 8?

Answer 23

State Housing Finance Agencies (HFAs)

Question 24

To give borrowers reasonable time to submit such applications, servicers cannot make the first notice or filing required for the foreclosure process until a mortgage loan account is more than [blank] days delinquent.

Answer 24

120

Question 25

The [blank] must ensure that the title is generally acceptable and that the mortgage constitutes a lien of the required priority on a fee simple or leasehold estate in the property.

Answer 25

Title Insurance Policy

Question 26

By allowing the Buying and Selling of first mortgages, the 1934 Housing Act had what effect on the mortgage markets?

Answer 26

It added Liquidity to the Mortgage markets

Question 27

The SAFE Act states that “ [blank] means any mortgage product other than a 30-year fixed-rate mortgage”

Answer 27

Nontraditional Mortgage Product

Question 28

What are the qualifying debt ratios for a FHA loan?

Answer 28

31/43

Question 29

The act or process of developing an opinion of value is known as [blank]

Answer 29

Appraisal

Question 30

What is the most popular credit scoring model?

Answer 30

FICO

Question 31

A mortgage, in which a large portion of the borrowed principal is repaid in a single payment, at the end of the loan period prior to full amortization is a:

Answer 31

Balloon Loan

Question 32

On the Closing Disclosure, under which Loan Cost Category should the appraisal be listed?

Answer 32

Category B, Services the Borrower Did Not Shop For

Question 33

Inducing a borrower to repeatedly refinance a loan, in order to charge high points and fees, each time the loan is refinanced; is known as:

Answer 33

Loan Flipping

Question 34

Servicers must generally provide a response to consumer requests, for the payoff balances of their mortgage loans within [blank] business days of receiving a written request.

Answer 34

7

Question 35

blank] is when a senior lien permits a junior lien to have payoff priority.

Answer 35

Subordination

Question 36

A monetary Fee that is charged with, the early payoff or pay down of a mortgage would be known as:

Answer 36

Prepayment Penalty

Question 37

Special payment calculation rules apply for Qualified loans with balloon payments, interest-only payments, or negative amortization (must qualify using maximum possible rate/payment in the first ________ year(s) of the term).

Answer 37

5

Question 38

On a title Insurance Policy which Schedule defines the Insured, and the real estate covered by the policy?

Answer 38

Schedule A

Question 39

On a title Insurance Policy which Schedule defines the Standard and General Exceptions for the policy?

Answer 39

Schedule B

Question 40

On a closed end transaction, which form is required to be provided to a borrower three days before consummation?

Answer 40

Closing Disclosure

Question 41

Which program is the basic FHA 96.5% LTV program?

Answer 41

203b

Question 42

Which form(s) did the Loan Estimate replace?

Answer 42

Good Faith Estimate and Truth-in-lending form

Question 43

What is the standard range of credit scoring base FICO scores?

Answer 43

300-850

Question 44

If a settlement service provider refers settlement services to another company that they have an ownership interest in, they have a/an [blank].

Answer 44

Affiliated Business Arrangement

Question 45

Presenting good options and engaging the customer in the solution are part of [blank].

Answer 45

Product selection

Question 46

[blank] means an individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain.

Answer 46

Mortgage Loan Originator

Question 47

The receipt, collection, and distribution of information common for the processing or underwriting of a loan in the mortgage industry is commonly known as [blank].

Answer 47

Administrative or Clerical Tasks

Question 48

In the Sales Comparison Approach, the Appraiser ultimately selects a single comparable of [blank] or more comparables selected in the comparative analysis to drive the opinion of value.

Answer 48

3

Question 49

Which Federal Law regulates escrows to control creditors from making excessive escrow collections?

Answer 49

RESPA

Question 50

[blank] occurs judicially, but differs from more common judicial foreclosure action in that the title to the property is granted to the lender, by the court as opposed to the court ordering an auction.

Answer 50

Non Judicial Foreclosure

Question 51

According to the SAFE Act how many hours of Pre-licensing Education are required for a Mortgage Loan Originator License?

Answer 51

20

Question 52

All states allow [blank] foreclosure, and in some states this is the only remedy for default.

Answer 52

Judicial

Question 53

What is the standard UFMIP for FHA loans?

Answer 53

1.75%

Question 54

Dodd Frank is a very big law, what is one of the more significant consumer protections derived from the passage of Dodd Frank?

Answer 54

To protect consumers from abusive financial services practices

Question 55

What is the Loan to Value on a loan where the sales price/appraised value is $350,000 and the loan amount is $280,000?

Answer 55

80.00%

Question 56

The length of the National Test Component with Uniform State Content has ____ questions.

Answer 56

125

Question 57

[blank] is the generally recognized ethical and performance standard for the appraisal profession.

Answer 57

USPAP

Question 58

Amendments to Regulation Z implement statutory changes made by the Dodd-Frank Act, that extend the time required to maintain a mandatory escrow account established for a Higher-Priced mortgage loan to [blank] years from [blank] year.

Answer 58

Five Years / One Year

Question 59

What is the per diem interest on a loan amount of $100,000 and interest rate of 5.5% based on a 365 day year? (Round up to nearest cent)

Answer 59

$15.07

Question 60

What form must be provided to consumers no later than the third business day after they submit a loan application?

Answer 60

Loan Estimate

Question 61

If an individual fails three consecutive Loan originator pre-licensing tests, the individual must wait at least [blank] months before taking the test again.

Answer 61

six

Question 62

[blank] is the process of determining from the public record just what rights in real property are and who owns them.

Answer 62

Title Search

Question 63

Which determination must an underwriter make when considering a borrowers income?

Answer 63

Ability to repay

Question 64

The CFPB was created by Title X of Dodd Frank. The CFPB is an Executive agency within what part of the US government?

Answer 64

The Federal Reserve System

Question 65

What is the Passing percentage for the national MLO licensing test?

Answer 65

75%

Question 66

The [blank] approach to value, assumes that a potential purchaser will consider building a substitute residence, that has the same use as the property being appraised.

Answer 66

Cost Approach

Question 67

The LE/CD disclosures are for use with:

Answer 67

Federally Related Closed End Fixed rate Mortgages Secured to Real Property

Question 68

A limit on how much the payment amount, or the interest rate may increase is known as [blank]

Answer 68

Payment or Rate caps

Question 69

Usually for mortgages, the [blank] establishes priority for payment.

Answer 69

The chronological order of recording

Question 70

An individual would be eligible for a loan originator license if they have never been convicted of, pled guilty or nolo contendere to a felony in any court in the [blank] year period preceding the date of the application for licensing.

Answer 70

7

Question 71

What are the qualifying debt ratios for a USDA loan?

Answer 71

29/41

Question 72

A lender, who wants the title insurer to be responsible for the agent's acts in connection with closing must separately contract with the title insurer for such additional protection. This creditor protection is evidenced by which of the following?

Answer 72

The Closing Protection Letter

Question 73

Title insurance, The origination of a federally related mortgage loan, and The underwriting and funding of loans are examples of [blank] as defined by RESPA.

Answer 73

Settlement Services

Question 74

What are the qualifying debt ratios for a VA loan?

Answer 74

41

Question 75

In Title Theory states, the buyer of the property actually grants a power of sale right to a trustee and generally conveys legal title to this trustee at consummation or closing and evidenced by a [blank].

Answer 75

Evidenced by a Deed of Trust

Question 76

Loans to borrowers should be made on [blank] rather than [blank].

Answer 76

Ability to Repay / Foreclosure Value

Question 77

From an investor’s standpoint, one very significant aspect of mortgage financing is the relative security of the investor’s investment. Which of the following instruments establishes the investor’s security?

Answer 77

The Deed of Trust

Question 78

Which Federal Law is Intended to protect consumers from excessive or unreasonable pricing of services from settlement providers?

Answer 78

RESPA

Question 79

For adjustable-rate Qualified mortgages, the monthly payment must be calculated using the [blank] or an [blank] rate, whichever is higher.

Answer 79

Fully Indexed / Introductory

Question 80

The primary mission of FinCEN is:

Answer 80

FinCEN's mission is to safeguard the financial system from illicit use

Question 81

This type of foreclosure, also known as statutory foreclosure, is allowed by many states if the mortgage includes a power of sale clause.

Answer 81

Non-Judicial

Question 82

What is the number one obstacle to Homeownership?

Answer 82

Cash to Close

Question 83

In regards to Mortgage Loan Origination Licensing [blank] determine if licensure is required, not [blank].

Answer 83

Activities / Job Title

Question 84

What law established the 3-day right of rescission rule?

Answer 84

TILA

Question 85

TILA requires lenders to disclose the ______ _______ ______ ______ to consumer applicants.

Answer 85

Complete cost of credit

Question 86

If an application for credit is DENIED based on the appraisal under ECOA (Reg B) says the borrower has _____ days to request a copy/ lender has _____ days to deliver.

Answer 86

90 days to request | 30 days to deliver

Question 87

ECOA requires the regulators to _____ _____ when extending credit.

Answer 87

Be Equal "Regulation B"

Question 88

HMDA allows regulators to "C" where possible discrimination is taking place.

Answer 88

Regulation C

Question 89

HMDA information is located where?

Answer 89

Section X (TEN) of the 1003 loan application (ethnicity, gender)

Question 90

HPA stands for

Answer 90

Homeowners protection Act

Question 91

Does HPA deal with PMI or MIP?

Answer 91

PMI | MIP is for FHA loans

Question 92

What kind of loans have PMI

Answer 92

Conventional loans NOT government loans.

Question 93

Does PMI protect the borrower or the lender?

Answer 93

the lender

Question 94

SAFE act stands for

Answer 94

Secure and Fair Enforcement Act

Question 95

HERA stands for

Answer 95

Housing and Economic Recovery Act

Question 96

What law created the SAFE Act?

Answer 96

HERA

Question 97

FACT Act stands for

Answer 97

Fair and Accurate Credit Transactions Act

Question 98

FACT Act deals with

Answer 98

Identity Theft

Question 99

FACT Act rules:

Answer 99

Section 114 Rules | "Red Flag Rules"

Question 100

What 3 policies are under GLBA?

Answer 100

SPF Safeguarding Pretexting Financial Privacy

Question 101

What is a Safeguarding policy? | GLBA

Answer 101

a policy on how businesses will keep our credit card information safe.

Question 102

What is Pretexting policy? | GLBA

Answer 102

A policy to keep others from gaining your information under false pretenses (pretending to be you). "pretenders" example: security questions

Question 103

What is a Financial Privacy policy? | GLBA

Answer 103

governs the collection of non-public information and how it is shared with affiliates. (opt-in, opt-out)

Question 104

HOEPA Section 32

Answer 104

High Cost Loans (Part of TILA)

Question 105

HOEPA Section 35

Answer 105

Higher Priced Loans (Part of TILA)

Question 106

AfBA/ ABA

Answer 106

Affiliated Business Arrangements (1%) | If you have 1% interest in the other business you have to disclose this immediately (at the time of referral.)

Question 107

Civil Rights Act of 1866 is about _______

Answer 107

RACE

Question 108

Escrow Account is also known as a

Answer 108

impound account or a reserve account Escrow accounts create a budget mortgage (PITI)