Wa-35 question quiz

Question 1

A licensee must maintain a minimum capital of ________dollars to originate proprietary reverse mortgage loans in WA. a.$3 million b.$20 million c.$10 million d.$100 million

Answer 1

c.$10 million

Question 2

A licensee must obtain and maintain an irrevocable standby letter of credit necessary to fund all reverse mortgage loans anticipated over the next 12 months for loans on their books plus those expected to be made over the next 12 months, or ______ whichever is greater. a.$1 million b.$5 million c.$3 million d.$10 million

Answer 2

c.$3 million

Question 3

According to WA’s servicing requirements the servicer must notify the borrower if a payment is received but not credited and instead placed in a suspense account. They must mail the notification to the borrower within_____at the borrower’s last known address. a.5 business days b.12 business days c.7 business days d.10 business days

Answer 3

d.10 business days

Question 4

According to WA’s servicing requirements the servicer must notify the borrower within business days of any change to the escrow account, other than the changes brought about by the borrower’s regularly scheduled payment, that will change the borrower’s escrow payment amount: a.10 business days b.7 business days c.5 business days d.15 business days

Answer 4

a.10 business days

Question 5

All violations are misdemeanors with a maximum penalty of _____ in jail and/or a fine of _____. a.90 days/$1,000 b.120 days/$1,000 c.60 days/$500 d.90 days/$5,000

Answer 5

a.90 days/$1,000

Question 6

An individual must retake the loan originator test if they have not been a loan originator within the past___ years. a.5 years b.2 years c.7 years d.10 years

Answer 6

a.5 years

Question 7

At least _____ before notice of sale is recorded, transmitted or served, a written notice of default must be mailed by the beneficiary or trustee to the borrower and grantor at their last known addresses, return receipt requested, and the beneficiary or trustee must post a copy of the notice in a conspicuous place on the premises.

a. 90 days
b. 30 days
c. 120 days
d. 60 days

Answer 7

a.90 days

Question 8

How did the Department discover the violations? a.Through an examination b.Through an investigation c.Through a consumer complaint d.None of the above

Answer 8

a.Through an examination

Question 9

How many hours of continuing education must an MLO take yearly? a.10 hours b.8 hours c.9 hours d.12 hours

Answer 9

b.8 hours

Question 10

How many hours of Pre-Licensing Education must an MLO applicant take? a.22 hours b.20 hours c.18 hours d.24 hours

Answer 10

a.22 hours

Question 11

If an interest rate is advertised, what else must be disclosed? a.The payment b.The APR c.The total cost of the loan d.None of the above

Answer 11

b.The APR

Question 12

Other than MLOs, who is the WA-DFI responsible for overseeing? a.Mortgage lenders b.Both a and b c.Banks d.Mortgage brokers

Answer 12

c.Banks

Question 13

The Department will provide a _______ after the exit meeting of an examination. a.Examination Report b.Notice of Violation and Opportunity for Response c.Post-Examination Work and Report d.None of the above

Answer 13

Not this-b.Notice of Violation and Opportunity for Response

Question 14

The lender must provide copies of these appraisals to the borrower within ____ of the borrower’s written request, provided the borrower has paid for the appraisal. a.10 days b.5 days c.7 days d.14 days

Answer 14

b.5 days

Question 15

The lender must provide the borrower with a list of at least______ independent housing counseling agencies approved by the federal department of Housing and Urban Development, including at least 2 agencies that can provide counseling by telephone. a.10 agencies b.7 agencies c.5 agencies d.2 agencies

Answer 15

d.2 agencies

Question 16

The principal is the ____ and the agent is the ____. a.Buyer or Seller/real estate agent b.Real estate agent/Buyer or seller c.Real estate agent/Mortgage loan originator d.None of the above

Answer 16

a.Buyer or Seller/real estate agent

Question 17

The term _____ means that an applicant or licensee demonstrates financial responsibility, character, and general fitness sufficient to command the confidence of the community and to warrant the belief that the business will be operated honestly, fairly, and efficiently within the purposes of WA law and rules. a.“Good standing” b.“Financial responsibility” c.“License qualification” d.None of the above

Answer 17

a.“Good standing”

Question 18

The _____ is the state regulatory authority in WA. a.The WA Department of Financial Institutions b.The WA Division of Securities and Insurance c.The WA Division of Financial Institutions d.The WA Department of Financial Services

Answer 18

a.The WA Department of Financial Institutions

Question 19

Violations regarding trust accounts are class C felonies with a maximum penalty of ___ years in prison and/or a fine of ____. a.10 years in prison/ $25,000 dollars b.5 years in prison/ $10,000 dollars c.10 years in prison/$10,000 dollars d.5 years in prison/$5,000 dollars

Answer 19

b.5 years in prison/ $10,000 dollars

Question 20

Washington is a __________. a.Judicial foreclosure state b.Non-judicial foreclosure state c.Is either a judicial or non-judicial foreclosure state d.None of the above

Answer 20

b.Non-judicial foreclosure state

Question 21

What is the cost of a consumer loan company license? a.$1,162.21 b.$1,170 c.$1,900.21 d.$2,000

Answer 21

a.$1,162.21

Question 22

What is the total application cost for an MLO in WA? a.$155 b.$206.25 c.$155.25 d.$200

Answer 22

b.$206.25

Question 23

What status will your license be put in if your application is approved but you aren’t sponsored by a licensed entity? a.Approved b.Approved-Inactive c.Inactive d.Reinstated

Answer 23

b.Approved-Inactive

Question 24

Which federal law specifically regarding mortgage insurance must everyone in WA follow? a.RESPA b.ECOA c.The Homeownership Protection Act d.None of the above

Answer 24

c.The Homeownership Protection Act

Question 25

Which of the following is an example of a change requiring notification by the servicer of a change in the escrow account: a.Increase in hazard insurance premiums b.Increase in real estate taxes c.A decrease in the required reserve amount for the account d.All of the above

Answer 25

d.All of the aboved.All of the above

Question 26

Which of the following is not one of the penalties being levied? a.Their mortgage broker license (and the designated broker licensee's license is being suspended) is being suspended for 6 months b.They are required to pay fines of $25,000 plus the investigation fee c.They are being required to hire a third-party company to do compliance for them for the next 2 years d.They are requiring a refund to two different borrowers

Answer 26

c.They are being required to hire a third-party company to do compliance for them for the next 2 years

Question 27

Which of the following is not one of the violations found during the examination? a.Unlicensed activity was discovered on 2 loan files, the loans were originated before the licensee's license was approved. b.Deceptive or Unfair Advertising – the licensee failed to provide their license number on at least 4 internet advertisements, the licensee also used the term “best” in reference to its loans and its rates c.Failure to Maintain Funds in Trust – the licensee deposited credit report or appraisal fees into the licensee's general account instead of into trust accounts as required by WA law d.Appraisal fraud- the licensee paid appraisers extra money to obtain specific valuations on their loans

Answer 27

d.Appraisal fraud- the licensee paid appraisers extra money to obtain specific valuations on their loans

Question 28

Which of the following terms cannot appear in an advertisement? a.“lowest” b.“best” c.“free” d.All of the above are prohibited

Answer 28

d.All of the above are prohibited

Question 29

"\_\_\_\_\_\_\_\_" means participating in escrow transactions. It includes, but is not limited to, having access to a client's personal information, financial records, or funds. Employees that perform administrative functions like payroll or human resources services are not handling escrow transactions unless such persons also perform duties meeting this definition. a.Acting as an escrow agent b.Handling escrow transactions c.Handling escrow accounts d.None of the above

Answer 29

b.Handling escrow transactions

Question 30

"\_\_\_\_\_\_\_\_\_" is a short sale transaction where the value of a property is misrepresented to the lender, who then authorizes sale of the property for less than market value. The property is resold to another person at market value or closer to market value, creating a profit. The failure to disclose the nature of the transactions or the true value of the property to the lender constitutes fraud on the lender, the original property owner, or the second buyer, and is a violation. a. Loan modification b.Real estate flipping c.Real estate flopping d.Escrow account fraud

Answer 30

Not this - a. Loan modification