MORTGAGE LOAN ORIGINATOR TX PRACTICE TEST 1 EXAM QUESTIONS WITH ANSWERS

MORTGAGE LOAN ORIGINATOR TX
PRACTICE TEST 1 EXAM QUESTIONS
WITH ANSWERS

Higher-PricedYMortgageYLoansY(HPML)YareYdefinedYasYclosed-
endYresidentialYmortgageYloansYsecuredYbyYtheYconsumer'sYprincipalYdwellingYwithYanYAPRYthatYex
ceedYtheYaverageYprimeYofferYrateY(APOR)YforYcomparableYtransactionsYby:Y-YCORRECTYANSWERS-
2.5YpercentageYpointsYforYaYfirstYlienYjumboYresidentialYmortgageYloan



TheYTruth-
InYLendingYActYrequiresYresidentialYmortgageYloanYoriginatorsYtoYmakeYcertainY"materialYdisclosur
es"YonYloansYsubjectYtoYtheYRealYEstateYSettlementYProceduresYActYwithinYthree:Y-
YCORRECTYANSWERS-BusinessYdaysYafterYreceiptYofYtheYwrittenYapplication.




LendersYmustYreportYunderYtheYHMDAYtheYapplicant'sYethnicity,Yrace,YandYsex.YWhenYconductingYa
Yface-to-


faceYinterviewYinYwhichYtheYapplicantYrefusesYtoYprovideYtheYrequiredYHMDAYinformation;YtheYloa
nYofficerYmustYprovideYtheYinformationYbasedYon:Y-YCORRECTYANSWERS-AppearanceYandYsurname



AnYAffiliatedYBusinessYArrangementYdisclosureYisYrequiredYtoYbeYgivenYtoYtheYconsumer?Y-
YCORRECTYANSWERS-AtYorYpriorYtoYtheYtimeYofYreferral




UnderYtheYTILAYtheYconsumerYhasYaYrightYofYrescissionYinYaYcreditYtransactionYinvolving:Y-
YCORRECTYANSWERS-RefinanceYofYaYprincipleYdwelling.




TheYFairYCreditYReportingYActYallowsYconsumersYallYofYtheYfollowingYexcept:Y-YCORRECTYANSWERS-
DemandYallYreferencesYtoYbankruptciesYbeYremovedYfromYtheirYreportYafterY5YyearsYfromYtheYdateY
ofYdischarge.

,UnderYECOA,YwhenYisYaYdisclosureYconcerningYtheYapplicant'sYrightYtoYobtainYaYcopyYofYtheYapprais
alYreportYdueYtheYconsumer?Y-YCORRECTYANSWERS-
WithinYthreeYbusinessYdayYafterYreceiptYofYtheYwrittenYapplication.



UnderYtheYRedYFlagsYRules,YmortgageYloanYoriginatorsYmustYdevelopYaYwrittenYprogramYthatYidenti
fiesYandYdetectsYtheYwarningYsignsYof:Y-YCORRECTYANSWERS-IdentityYtheft.



ThisYbookletYmustYbeYgivenYtoYeveryYapplicantYconsideringYanYAdjustableYRateYMortgage:Y-
YCORRECTYANSWERS-ConsumerYHandbookYonYAdjustableYRateYMortgages.




AllYofYtheYfollowingYinquiriesYareYconsideredYdiscriminatoryYunderYECOAYexcept:Y-
YCORRECTYANSWERS-ImmigrationYstatus




TheYTruthYinYLendingYAct'sYadvertisingYprovisionsYrequireYthatYifYanYadvertisementYpromotingY"clo
sed-
endYcredit"YcontainsYaY"triggeringYterm,"YthreeYspecificYdisclosuresYmustYalsoYbeYincludedYinYtheYa
dvertisement.YWhichYofYtheYfollowingYisYnotYconsideredYaY"triggeringYterm"YunderYRegulationYZ?Y-
YCORRECTYANSWERS-APR




ECOAYrequiresYthatYaYcopyYofYtheYappraisalYmustYbeYgivenYtoYtheYapplicant:Y-YCORRECTYANSWERS-
PromptlyYuponYitsYcompletionYorYthreeYbusinessYdaysYbeforeYconsummation.



TheYHomeownersYProtectionYActYisYaYconsumerYprotectionYlawYthatYrequiresYservicesYto:Y-
YCORRECTYANSWERS-


AutomaticallyYdiscontinueYPMIYwhenYtheYborrowerYreachesY78%YLTVYasYlongYasYthereYareYnoYlateYp
aymentsYinYtheYpastY12Ymonths.



UnderYtheYTILA,YwhenYaYconsumerYrescindsYaYtransaction,YtheYsecurityYinterestYgivingYriseYtoYtheYri
ghtYofYrescissionYbecomesYvoidYand:Y-YCORRECTYANSWERS-
TheYconsumerYwillYnoYlongerYbeYliableYforYanyYamount,YincludingYanyYfinanceYcharge.

, WhichYofYtheYfollowingYisYnotYanYeventYthatYwouldYrequireYaYnewYwaitingYperiodYforYtheYClosingYDi
sclosure?Y-YCORRECTYANSWERS-UnexpectedYdiscoveriesYonYaYfinalYwalk-
throughYrequiringYaYsellerYcreditYtoYtheYbuyer.



InYorderYtoYcomplyYwithYECOA,YaYStatementYofYCreditYDenial,YTermination,YorYChangeYformYmustYb
eYretainedYbyYtheYcreditorYforYatYleast:Y-YCORRECTYANSWERS-25Ymonths.



AYtransactionYisYaYHOEPAYhigh-
costYmortgageYifYitsYAPRY(measuredYasYofYtheYdateYtheYinterestYrateYforYtheYtransactionYisYset)Yexce
edsYtheYAverageYPrimeYOfferYRateY(APOR)YforYaYcomparableYtransactionYonYthatYdateYbyYmoreYtha
n:Y-YCORRECTYANSWERS-6.5YpercentageYpointsYforYfirst-lienYtransactionsY$50,000YandYabove.



IfYanYapplicantYisYdeniedYcredit,YtheYlenderYmustYgiveYnoticeYtoYtheYapplicant.YWithinY_____YdaysYaf
terYreceiptYofYaYcompletedYapplicationYforYcredit,YaYcreditorYshallYnotifyYtheYapplicantYofYitsYactionY
onYtheYapplication.Y-YCORRECTYANSWERS-30Ydays.



TheYCFPB'sYFinalYRuleYprohibitsYresidentialYmortgageYloanYoriginatorYcompensationYbeYbasedYonY
whichYofYtheYfollowing?Y-YCORRECTYANSWERS-InterestYrateYofYtheYmortgageYloan.



RMLOsYareYrequiredYtoYfileYsuspiciousYactivityYreportsY("SAR")YwithYtheYFinancialYCrimesYEnforcem
entYNetworkY(FinCen):Y-YCORRECTYANSWERS-
NoYlaterYthanY30YcalendarYdaysYafterYtheYdateYofYtheYinitialYdetection.



WhichYofYtheYfollowingYtransactionsYareYcoveredYbyYtheYTILA-RESPAYrule?Y-YCORRECTYANSWERS-
Construction-onlyYloans.



AYtransactionYisYaYHOEPAYmortgageYifYitsYpointsYandYfeesYexceedYtheYfollowingYthreshold:Y-
YCORRECTYANSWERS-


5YpercentYofYtheYtotalYloanYamountYforYaYtransactionYwithYaYloanYamountYofY$21,549YorYmore.