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MLO SAFE CA > Random MLO Qs > Flashcards

Random MLO Qs Flashcards

1
Q

Mortgage RELIEF companies may NOT collect any fees

A

MARS Rule

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2
Q

non-refundable funding fee

A

VA Loan

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3
Q

mortgage enabling the lender to demand full repayment

A

Alienation Clause

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4
Q

When evaluating a Lending Estimate, each of these are subject to a 10% tolerance EXCEPT:

A

Transfer taxes

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5
Q

financial institutions to help meet the credit needs of their communities

A

CRA

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6
Q

Which requires that all financial institutions ensure the security and confidentiality of customer records?

A

Safeguards Rule

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7
Q

ECOA is a law that ensures:

A

Lenders make credit available with fairness and without discrimination

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8
Q

An FHA borrower may

A

Use a gift for the entire down payment

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9
Q

A borrower is refinancing his home and signs the loan papers. How much time does Regulation Z give him to change his mind?

A

3 business days

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10
Q

Which is NOT be considered as debt

A

Cable service payment

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11
Q

HOEPA amends what law?

A

TILA

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12
Q

PITI divided by gross monthly income

A

Housing expense ratio

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13
Q

TILA requires creditors to maintain records

A

Five Years

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14
Q

maximum length of time that collection information can be reported

A

7 Years

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15
Q

A borrower has a stable monthly income of $4,000 and recurring debts of $600. If he’s getting an FHA loan, what’s the maximum monthly payment for which he would qualify?

A

????

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16
Q

freeze on on credit report

A

FACTA

17
Q

A borrower reports income of $40,000 from rental properties. How much of that should be considered when applying for a mortgage loan?

A

$30,000

18
Q

Definition (essentially an outline) of a qualified mortgage (QM) loan?

A

Dodd-Frank Act

19
Q

What is the maximum LTV on a Rural Development 90 loan?

A

90%

20
Q

During the application process, an MLO asks if the borrower is widowed; he is violating which law?

A

ECOA

21
Q

What is NOT considered a protected class under the Fair Housing Act?

A

Age

22
Q

If an MLO or a real estate agent engages in the practice of soliciting homeowners in a particular community to sell their properties because people of other races, religions, or social status have purchased in the area, they would be guilty of:

A

Blockbusting

23
Q

Which household does NOT qualify as a protected class under the familial status clause of the Fair Housing Act?

A

Retired couple

24
Q

Which mortgage clause allows a lender to declare the entire unpaid balance due on a borrower’s default?

A

Acceleration

25
Q

a qualified mortgage (QM) CANNOT have

A

Balloon payment

26
Q

correct way to ask a client about his or her marital status?

A

Are you married, unmarried, or separated?

27
Q

A lender is obligated to provide a borrower with what document one business day prior to the loan closing if requested to do so?

A

Closing Disclosure

28
Q

HMDA government monitoring information on

A

Section X of the Residential Loan Application

29
Q

A higher priced loan is defined by TILA

A

average prime offer rate

30
Q

Financial Services Modernization Act of 1999

A

Gramm-Leach-Bliley Act

31
Q

full disclosure about APR

A

Regulation Z

32
Q

Which federal act requires that a “Notification of Action Taken” form be delivered to the applicant within 30 days of application?

A

ECOA

33
Q

As of July 2011, all these laws are implemented and enforced by the Consumer Financial Protection Bureau (CFPB) EXCEPT the:

A

Fair Housing Act

34
Q

Which statement about loan origination fees on a Loan Estimate is FALSE?

A

Lender and mortgage broker fees for the same transaction must be itemized

35
Q

third party in a loan transaction

A

Closing agent

36
Q

dwelling

A

Any residential structure that contains one-to-four units, whether or not that structure is attached to real property

MLO SAFE CA (7 decks)

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