LESSON 4 EXAM CCJ 4644 QUIZZES 7 11
PRACTICE SET 2026 FULL SOLUTION
◉ FHA loans require two types of insurance: UFMIP and annual
mortgage insurance. Answer: True
◉ An appraisal may not always be required with a streamline
mortgage. Answer: True
◉ To qualify for a HECM, a borrower must be 62 years of age or
older. Answer: True
◉ VA loans are unavailable for the veteran's surviving spouse.
Answer: False
◉ VA loans can be assumable. Answer: True
◉ The funding fee for a VA loan is higher on the first usage than on
subsequent uses when a borrower pays less than 5% in a down
payment. Answer: False
◉ The funding fee on an IRRRL is 0.50%. Answer: True
,◉ USDA loans are available in rural areas with less than 35,000
people. Answer: True
◉ A jumbo loan is a single-family loan that exceeds Fannie Mae and
Freddie Mac's loan limits. Answer: True
◉ If a veteran is looking to obtain a mortgage, you only need to show
them VA loans. Answer: False
◉ An ARM could be a possible choice for a veteran who is having
financial difficulties. Answer: True
◉ A reverse mortgage might be a good choice for a borrower who
has someone who will want to inherit their home. Answer: False
◉ A 30-year mortgage is a great option for a borrower who wants
lower payments so they have money to save. Answer: True
◉ A 15-year fixed-rate mortgage is a traditional mortgage. Answer:
False
◉ A conventional loan is not insured by the Federal Government.
Answer: True
,◉ Which of the following is NOT a feature of a HELOC?
1. When the balance is repaid the homeowner may use it again
2. It is a mortgage loan line of credit
3. Requires a large lump-sum payment at the end of the term with a
smaller payment to start
4. Borrowers can get a lump sum disbursement Answer: 3.
◉ How much would a borrower pay for two discount points on a
$150,000 mortgage?
1. $1,500
2. $1,750
3. $2,000
4. $3,000 Answer: 4.
◉ If the index is two percent and the margin is two and a half
percent, then the fully indexed rate is ________.
1. Two percent
2. Four percent
3. Four and half percent
4. Five percent Answer: 3.
◉ All of the following are attributes of an adjustable-rate mortgage
(ARM), except:
, 1. The interest rate can change periodically
2. It is based on an index that changes
3. It is based on a margin that's fixed
4. It is the most common type of mortgage Answer: 4.
◉ Which of the following is an example of a conforming loan?
1. VA loan
2. FHA loan
3. USDA loan
4. Freddie Mac loan Answer: 4.
◉ The Dodd-Frank Act was enacted in 2008. Answer: False
2010
◉ RESPA does not cover large tracts of land over 25 acres. Answer:
False
◉ A servicer must disclose an initial escrow account statement
within 45 calendar days of settlement. Answer: True
◉ The servicer must send a disclosure to the loan applicant within
seven days if the loan might be sold, assigned, or transferred to any
other entity at any time. Answer: False
PRACTICE SET 2026 FULL SOLUTION
◉ FHA loans require two types of insurance: UFMIP and annual
mortgage insurance. Answer: True
◉ An appraisal may not always be required with a streamline
mortgage. Answer: True
◉ To qualify for a HECM, a borrower must be 62 years of age or
older. Answer: True
◉ VA loans are unavailable for the veteran's surviving spouse.
Answer: False
◉ VA loans can be assumable. Answer: True
◉ The funding fee for a VA loan is higher on the first usage than on
subsequent uses when a borrower pays less than 5% in a down
payment. Answer: False
◉ The funding fee on an IRRRL is 0.50%. Answer: True
,◉ USDA loans are available in rural areas with less than 35,000
people. Answer: True
◉ A jumbo loan is a single-family loan that exceeds Fannie Mae and
Freddie Mac's loan limits. Answer: True
◉ If a veteran is looking to obtain a mortgage, you only need to show
them VA loans. Answer: False
◉ An ARM could be a possible choice for a veteran who is having
financial difficulties. Answer: True
◉ A reverse mortgage might be a good choice for a borrower who
has someone who will want to inherit their home. Answer: False
◉ A 30-year mortgage is a great option for a borrower who wants
lower payments so they have money to save. Answer: True
◉ A 15-year fixed-rate mortgage is a traditional mortgage. Answer:
False
◉ A conventional loan is not insured by the Federal Government.
Answer: True
,◉ Which of the following is NOT a feature of a HELOC?
1. When the balance is repaid the homeowner may use it again
2. It is a mortgage loan line of credit
3. Requires a large lump-sum payment at the end of the term with a
smaller payment to start
4. Borrowers can get a lump sum disbursement Answer: 3.
◉ How much would a borrower pay for two discount points on a
$150,000 mortgage?
1. $1,500
2. $1,750
3. $2,000
4. $3,000 Answer: 4.
◉ If the index is two percent and the margin is two and a half
percent, then the fully indexed rate is ________.
1. Two percent
2. Four percent
3. Four and half percent
4. Five percent Answer: 3.
◉ All of the following are attributes of an adjustable-rate mortgage
(ARM), except:
, 1. The interest rate can change periodically
2. It is based on an index that changes
3. It is based on a margin that's fixed
4. It is the most common type of mortgage Answer: 4.
◉ Which of the following is an example of a conforming loan?
1. VA loan
2. FHA loan
3. USDA loan
4. Freddie Mac loan Answer: 4.
◉ The Dodd-Frank Act was enacted in 2008. Answer: False
2010
◉ RESPA does not cover large tracts of land over 25 acres. Answer:
False
◉ A servicer must disclose an initial escrow account statement
within 45 calendar days of settlement. Answer: True
◉ The servicer must send a disclosure to the loan applicant within
seven days if the loan might be sold, assigned, or transferred to any
other entity at any time. Answer: False
