SU # 47__Loan Estimate and Closing Disclosure Flashcards
What does a demand feature mean in a mortgage loan?
A demand feature would not allow the lender to require early repayment.
A demand feature would allow the lender to require early repayment.
A demand feature would allow the borrower to make an early repayment with a penalty.
A demand feature would allow the borrower to shorten the life of the loan by making double monthly payments.
A demand feature would allow the lender to require early repayment.
What is typically deposited into a mortgage loan escrow account?
Out-of-pocket money to be paid by the buyer at closing
Money held for certain future payments, such as insurance and taxes
Money required to pay for broker compensation.
Money for loan service fees
Money held for certain future payments, such as insurance and taxes
On what document would a consumer find information regarding a good-faith estimate of credit costs and transaction terms for a property loan mortgage?
Loan Estimate
HUD-2
Cost Estimate
Loan Projection Estimate
Loan Estimate
The administration aspect of a loan from the time the proceeds are dispersed until the loan is paid off is called
loan condition.
loan rate.
loan servicing.
loan loading.
loan servicing.
A mortgage Loan Estimate must be delivered within
three business days of loan application.
four business days of loan application.
five business days of loan application.
two days of loan application
three business days of loan application.
On a mortgage Loan Estimate, how are loan amounts and interest rates that might be changed after the closing indicated?
Check marks
Fill in the blanks
Yes or no statements
Plus or minus marks
Yes or no statements
What type of information is found in the Loan Calculations section on page 5 of the Closing Disclosure?
Assumption information regarding whether or not the lender will allow a loan assumption on a future sale or transfer
Late payment information regarding what late fee the lender will charge
Partial payments information regarding whether or not the lender would accept partial payments on the loan
The total amount of all payments on the loan, the dollar amount of the finance charges over the life of the loan, the amount financed, the annual percentage rate (APR), and the total interest percentage (TIP)
The total amount of all payments on the loan, the dollar amount of the finance charges over the life of the loan, the amount financed, the annual percentage rate (APR), and the total interest percentage (TIP)
What does it mean when a loan applicant signs the Confirm Receipt section on page 3 of the Loan Estimate?
It means that the borrower has accepted the mortgage loan.
It means that the borrower has decided to refuse the loan terms.
It means that the borrower has 5 business days to accept or reject the loan terms.
It means that the borrower has received a copy of the form.
It means that the borrower has received a copy of the form.
According to RESPA, a business day is a
the same as a calendar day.
work day that exceeds 8 hours.
day on which the creditor’s offices are open to the public for carrying out substantially all of its business functions.
work day that exceeds 6 hours.
day on which the creditor’s offices are open to the public for carrying out substantially all of its business functions.
Which of the following mortgage loan items would NOT typically fall under origination charges?
Points
Application Fee
Underwriting Fee
Title Insurance
Title Insurance
Which of the following statements best describes the term “consummation” as defined under Regulation Z?
The time that a consumer becomes contractually obligated on a credit transaction
The window of time that a consumer has to a accept or reject a credit transaction
The amount of time that a mortgage loan is viable
Three business days prior to acceptance of the loan
The time that a consumer becomes contractually obligated on a credit transaction
