What is the minimum down payment for a USDA loan? - ANSWER $0
How many hours of continuing education are minimally required? - ANSWER 8 hours
every year
Who is responsible for completing the HUD-1/Loan Disclosure? - ANSWER The closing
agent
A mortgagor's title insurance policy is: - ANSWER Based on purchase price
The assignee of a mortgage and note is participating in the: - ANSWER Secondary
mortgage market
VA loans are: - ANSWER Partially guaranteed
The late fee for a VA loan is: - ANSWER 4% of principal and interest
The purchase price of a home is $325,000 and the appraisal price is $350,000. If the first
mortgage is in the amount of $200,000 and the second mortgage is $60,000, what is the
combined loan-to-value ratio? - ANSWER 80.0%
The purchase price of a home is $375,000 and the buyer will assume a $175,000 first mort-
gage. The loan-to-value cannot exceed 85%. What is the maximum amount of the new sec-
ond mortgage? - ANSWER $144,750
1
,What clause in a mortgage allows the lender to call the entire loan balance due? - AN-
SWER Acceleration
PITI payments do NOT include which of the following: - ANSWER Funding fee
Who does Fannie Mae hold responsible for the quality of an appraisal? - ANSWER Ap-
praiser
Which law is known as Regulation B? - ANSWER Equal Credit Opportunity Act
Which law prohibits discrimination by lenders? - ANSWER Equal Credit Opportunity
Act
A property sold for $200,000 and was appraised at $180,000. The borrower reserved a loan
for $150,000. What is the loan-to-value? - ANSWER 83.3%
How many days does a lender have to send an adverse action notice? - ANSWER 30
The GFE/Loan Estimate must be mailed or given to the borrower within how many days after
receiving the signed application? - ANSWER 3 business days
The enforcement of a lien is known as: - ANSWER Foreclosure
What minimum percentage of ownership in a related service requires a conflict of interest
disclosure? - ANSWER 1%
What minimum percentage of ownership qualifies an individual as self-employed? - AN-
SWER 25%
2
,What government agency enforces ECOA? - ANSWER CFPB
A lender can discriminate based on: - ANSWER Credit history
How many days does a lender have after receipt of an application to notify the applicant of
its action on the application? - ANSWER 30
How many days does an applicant have after receipt of an adverse action notice to request a
statement of reasons from the lender? - ANSWER 60
How many days does a lender have to send a statement of reasons for an adverse action af-
ter receiving a request from an applicant? - ANSWER 30
The Truth-In-Lending Act (TILA) is implemented as: - ANSWER Regulation Z
The Truth-In-Lending Act (TILA) was implemented by the: - ANSWER Federal Reserve
Board
The Truth-In-Lending Act is administered by: - ANSWER CFPB
The TILA disclosure must be given to the applicant within how many days after receiving the
signed loan application for a reverse mortgage? - ANSWER 3 business days
Which of the following is NOT a trigger term? - ANSWER 48 easy payments
Which of the following does not constitute mortgage fraud on the part of a borrower? - AN-
SWER Including a public-assistance as part of his or her income
3
, Which of the following fraud schemes involves real estate professionals lying to lenders
about the value of a foreclosed property? - ANSWER House flipping
Which of the following is a red flag that suggests fraud has probably occurred? - AN-
SWER A buyer sells his house a month after buying it for 30% more than he paid
Which of the following documents would not be needed at a typical closing? - AN-
SWER A roof letter
Which of the following is not true of jumbo mortgages? - ANSWER They played a dis-
proportionate role in the housing crisis
The Real Estate Settlement Procedures Act (RESPA) is also known as - ANSWER Regula-
tion X
The sales price of a home is $100,000 on a 90% LTV 30-year fixed mortgage. Fannie
Mae/Freddie Mac requires 25% coverage, giving us a rate of 0.62%. What is the loan
amount? - ANSWER $90,000
Under the SAFE Act, a state has all of the following authorities EXCEPT - ANSWER To
waive the requirement for fingerprints for an initial license application
What type of loan has a non-refundable funding fee? - ANSWER VA loan
Under the CFPB, the following groups are identified as types of consumer and protection
laws EXCEPT - ANSWER Credit Authorization and Security
The primary purpose of Truth in Lending is to: - ANSWER Disclose the true costs of ob-
taining credit.
4
How many hours of continuing education are minimally required? - ANSWER 8 hours
every year
Who is responsible for completing the HUD-1/Loan Disclosure? - ANSWER The closing
agent
A mortgagor's title insurance policy is: - ANSWER Based on purchase price
The assignee of a mortgage and note is participating in the: - ANSWER Secondary
mortgage market
VA loans are: - ANSWER Partially guaranteed
The late fee for a VA loan is: - ANSWER 4% of principal and interest
The purchase price of a home is $325,000 and the appraisal price is $350,000. If the first
mortgage is in the amount of $200,000 and the second mortgage is $60,000, what is the
combined loan-to-value ratio? - ANSWER 80.0%
The purchase price of a home is $375,000 and the buyer will assume a $175,000 first mort-
gage. The loan-to-value cannot exceed 85%. What is the maximum amount of the new sec-
ond mortgage? - ANSWER $144,750
1
,What clause in a mortgage allows the lender to call the entire loan balance due? - AN-
SWER Acceleration
PITI payments do NOT include which of the following: - ANSWER Funding fee
Who does Fannie Mae hold responsible for the quality of an appraisal? - ANSWER Ap-
praiser
Which law is known as Regulation B? - ANSWER Equal Credit Opportunity Act
Which law prohibits discrimination by lenders? - ANSWER Equal Credit Opportunity
Act
A property sold for $200,000 and was appraised at $180,000. The borrower reserved a loan
for $150,000. What is the loan-to-value? - ANSWER 83.3%
How many days does a lender have to send an adverse action notice? - ANSWER 30
The GFE/Loan Estimate must be mailed or given to the borrower within how many days after
receiving the signed application? - ANSWER 3 business days
The enforcement of a lien is known as: - ANSWER Foreclosure
What minimum percentage of ownership in a related service requires a conflict of interest
disclosure? - ANSWER 1%
What minimum percentage of ownership qualifies an individual as self-employed? - AN-
SWER 25%
2
,What government agency enforces ECOA? - ANSWER CFPB
A lender can discriminate based on: - ANSWER Credit history
How many days does a lender have after receipt of an application to notify the applicant of
its action on the application? - ANSWER 30
How many days does an applicant have after receipt of an adverse action notice to request a
statement of reasons from the lender? - ANSWER 60
How many days does a lender have to send a statement of reasons for an adverse action af-
ter receiving a request from an applicant? - ANSWER 30
The Truth-In-Lending Act (TILA) is implemented as: - ANSWER Regulation Z
The Truth-In-Lending Act (TILA) was implemented by the: - ANSWER Federal Reserve
Board
The Truth-In-Lending Act is administered by: - ANSWER CFPB
The TILA disclosure must be given to the applicant within how many days after receiving the
signed loan application for a reverse mortgage? - ANSWER 3 business days
Which of the following is NOT a trigger term? - ANSWER 48 easy payments
Which of the following does not constitute mortgage fraud on the part of a borrower? - AN-
SWER Including a public-assistance as part of his or her income
3
, Which of the following fraud schemes involves real estate professionals lying to lenders
about the value of a foreclosed property? - ANSWER House flipping
Which of the following is a red flag that suggests fraud has probably occurred? - AN-
SWER A buyer sells his house a month after buying it for 30% more than he paid
Which of the following documents would not be needed at a typical closing? - AN-
SWER A roof letter
Which of the following is not true of jumbo mortgages? - ANSWER They played a dis-
proportionate role in the housing crisis
The Real Estate Settlement Procedures Act (RESPA) is also known as - ANSWER Regula-
tion X
The sales price of a home is $100,000 on a 90% LTV 30-year fixed mortgage. Fannie
Mae/Freddie Mac requires 25% coverage, giving us a rate of 0.62%. What is the loan
amount? - ANSWER $90,000
Under the SAFE Act, a state has all of the following authorities EXCEPT - ANSWER To
waive the requirement for fingerprints for an initial license application
What type of loan has a non-refundable funding fee? - ANSWER VA loan
Under the CFPB, the following groups are identified as types of consumer and protection
laws EXCEPT - ANSWER Credit Authorization and Security
The primary purpose of Truth in Lending is to: - ANSWER Disclose the true costs of ob-
taining credit.
4
