Ultimate Test

Question 1

When an underwriter makes a determination on a file other than approve, how long before a status needs to be sent to the borrower?

Answer 1

Immediately or 30 days from last notice to borrower

Question 2

When should a borrower receive a copy of their appraisal?

Answer 2

immediately

Question 3

What disclosure explains terminology of a purchase transaction settlement cost?

Answer 3

SCIB

Question 4

Out of the following what fees are not included in the APR

Answer 4

Title insurance and Seller paid points

Question 5

What are the two categories that consist of the “prepaid items” on total settlement charges

Answer 5

Taxes/insurance and Per Diem Interest

Question 6

What additional disclosure is needed with an ARM loan

Answer 6

Charm

Question 7

What is the major difference between an FHA Loan and VA loan?

Answer 7

VA loans do not require a down payment and FHA loans require a down payment

Question 8

What is the purpose of FNMA in the mortgage marketplace?

Answer 8

Purchase loans from lenders in the secondary market

Question 9

Which “C” measures the ability to repay on a loan?

Answer 9

Capacity

Question 10

A house was built 10 years ago. Which type of appraisal approach would be used to establish value

Answer 10

Market approach

Question 11

What determines position of liens?

Answer 11

Date and Recording

Question 12

FNMA and FHLMC securitize what type of loans?

Answer 12

Conforming loans

Question 13

What is the term that indicates that something may be on title to prevent the transfer of a clear title?

Answer 13

Encumbrance

Question 14

When must the ABA go out?

Answer 14

At time of referral

Question 15

What is the primary purpose for the Red Flag Rule regarding identity theft?

Answer 15

Identify methods that identity theft can occur

Question 16

What has happened if there is a “Fraud Alert” on a credit report?

Answer 16

The customer called the CRA and put a fraud alert on their credit profile

Question 17

What information is not included in the “liabilities” section of the 1003 for each account?

Answer 17

Payment History

Question 18

What does HPA stand for and why is this important to lenders and homeowners?

Answer 18

Homeowner Protection Act: To eliminate PMI when the loan comes to fruition

Question 19

Select which term identifies the amount of a VA guarantee

Answer 19

Entitlement

Question 20

When is a Reserve Annuity payment used?

Answer 20

Used to pay out HECM’s

Question 21

Who maps out flood zones for an existing property or new development (based on the 100 year flood rule)

Answer 21

FEMA

Question 22

Who checks public records to see if a property is located in a mapped out flood zone?

Answer 22

Appraiser

Question 23

How long should you keep mortgage loan records under ECOA?

Answer 23

25 months

Question 24

If you ask to put your number on the DNC registry, how long is it good for?

Answer 24

Forever

Question 25

A ___ cushion is allowed above what is required under section 10 of RESPA?

Answer 25

2 months

Question 26

When are escrow accounts reviewed and what amount of average would cause a refund to the borrower?

Answer 26

Annually, above $50

Question 27

If a borrower was discriminated against and ECOA laws were compromised, how many years does that borrower need to take action on a civil law suit against the broker?

Answer 27

Two years

Question 28

What is used to determine the value of a home when doing a VA loan?

Answer 28

Certificate of reasonable value