safe test

Question 1

Which of the following is not a protected class under the equal credit opportunity act (ecoa): Sex, Handicap, National origin, Race

Answer 1

Handicap

Question 2

Insurance companies not willing to deal directly with borrowers usually pay a loan servicing and preperation fee and make real estate mortgage loans to purchase indirectly through

Answer 2

Mortgage companies

Question 3

The primary purpose of the truth in lending act

Answer 3

To diclose the true costs of obtaining credit. No hidden fees.

Question 4

What is ecomonic obsolence

Answer 4

Economic obsolence is when factors outside of the owners control and unrelated to the actual property change the value of the property

Question 5

What is warehousing

Answer 5

Warehousing is when a bank and/other lenders create a bunch of loans for the sole purpose of placing them on the secondary market

Question 6

What kind of buyer would benefit from a balloon loan?

Answer 6

The kind of buyer who plans to sell the house before the balloon payment is due

Question 7

The recording of an instrument gives what kind of notice

Answer 7

Constructive notice

Question 8

What is actual notice

Answer 8

Actual notice is when an individual has first hand knowledge of something

Question 9

What are the names of major credit reporting agencies

Answer 9

Equifax, Transunion, Experian

Question 10

The risk of an originating entity being unable to sell a closed loan in the secondary market and having to retain it in their portfolio is called

Answer 10

Liquidity risk

Question 11

When do you not need to be a licensed mortgage loan originator

Answer 11

When you are negotiating a loan for an immediate family member

Question 12

According to the dodd frank act how much risk must be retained by the securitizer, or passed along to the originating lender, for a loan that is not federally insured or gauranteed and does not meet qrm guidelines

Answer 12

5%

Question 13

What is QRM, what does it mean, and what are the 4 types

Answer 13

Qualified residential mortgage. It is meant to reduce the number of mortgage defaults by requiring full documentation and income verification, and also preventing certain high risk mortage features. General, Temporary,Small,Creditor.

Question 14

All identity theft crimes will fall into two categories, what are they

Answer 14

Account takeover & Application fraud

Question 15

What is required on all FHA loans

Answer 15

MIP (Mortgage Insurance Premium)

Question 16

You are ineligible for a mortgage license if you’ve been convicted of any felonies in the past how many years?

Answer 16

7 Years

Question 17

What is the latest an application for a loan subject to the trid rules can receive a revised loan estimate without the loan being noncompliant

Answer 17

4 days prior to closing

Question 18

What are discount points or point?

Answer 18

Fee paid by the borrower to the lender to reduce the interest rate on loan. The amount paid as discount points is tax deductible, either in installments over the loan or as lump sum.

Question 19

What is mip?

Answer 19

Mortgage Insurance Premium.