Random MLO Qs Flashcards
Mortgage RELIEF companies may NOT collect any fees
MARS Rule
non-refundable funding fee
VA Loan
mortgage enabling the lender to demand full repayment
Alienation Clause
When evaluating a Lending Estimate, each of these are subject to a 10% tolerance EXCEPT:
Transfer taxes
financial institutions to help meet the credit needs of their communities
CRA
Which requires that all financial institutions ensure the security and confidentiality of customer records?
Safeguards Rule
ECOA is a law that ensures:
Lenders make credit available with fairness and without discrimination
An FHA borrower may
Use a gift for the entire down payment
A borrower is refinancing his home and signs the loan papers. How much time does Regulation Z give him to change his mind?
3 business days
Which is NOT be considered as debt
Cable service payment
HOEPA amends what law?
TILA
PITI divided by gross monthly income
Housing expense ratio
TILA requires creditors to maintain records
Five Years
maximum length of time that collection information can be reported
7 Years
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?
????
freeze on on credit report
FACTA
A borrower reports income of $40,000 from rental properties. How much of that should be considered when applying for a mortgage loan?
$30,000
Definition (essentially an outline) of a qualified mortgage (QM) loan?
Dodd-Frank Act
What is the maximum LTV on a Rural Development 90 loan?
90%
During the application process, an MLO asks if the borrower is widowed; he is violating which law?
ECOA
What is NOT considered a protected class under the Fair Housing Act?
Age
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:
Blockbusting
Which household does NOT qualify as a protected class under the familial status clause of the Fair Housing Act?
Retired couple
Which mortgage clause allows a lender to declare the entire unpaid balance due on a borrower’s default?
Acceleration
a qualified mortgage (QM) CANNOT have
Balloon payment
correct way to ask a client about his or her marital status?
Are you married, unmarried, or separated?
A lender is obligated to provide a borrower with what document one business day prior to the loan closing if requested to do so?
Closing Disclosure
HMDA government monitoring information on
Section X of the Residential Loan Application
A higher priced loan is defined by TILA
average prime offer rate
Financial Services Modernization Act of 1999
Gramm-Leach-Bliley Act
full disclosure about APR
Regulation Z
Which federal act requires that a “Notification of Action Taken” form be delivered to the applicant within 30 days of application?
ECOA
As of July 2011, all these laws are implemented and enforced by the Consumer Financial Protection Bureau (CFPB) EXCEPT the:
Fair Housing Act
Which statement about loan origination fees on a Loan Estimate is FALSE?
Lender and mortgage broker fees for the same transaction must be itemized
third party in a loan transaction
Closing agent
dwelling
Any residential structure that contains one-to-four units, whether or not that structure is attached to real property
