Summary 20 Hour SAFE: Applying Mortgage Knowledge to Exam Preparation/ NMLS SAFE Exam.

20 Hour SAFE: Applying Mortgage Knowledge to Exam Preparation/ NMLS SAFE Exam. The penalties for paying or accepting an illegal referral fee are: a. Fines of up to $5,000 and up to one year in prison b. Fines of up to $10,000 and up to one year in prison c. Fines of up to $10,000 and up to three years in prison d. Fines of up to $20,000 and up to one year in prison An annual escrow analysis is used to do which of the following? a. Report underwriting errors b. Prevent escrow overages c. Ensure the loan is properly amortized d. Reduce burden on the servicer The disclosure requirements of RESPA would apply to which of the following loans? a. A loan to purchase 75 acres of land b. A farm loan c. A loan to purchase a property that includes a gas station and convenience store d. A loan to purchase a duplex and rehabilitate it into a single-family dwelling A customer with an excellent credit score submits a loan application. When does ECOA require that the applicant be advised of the status of the application? a. Within one week b. Within three days c. Within 30 days d. Within 90 days Mr. Jones's loan application has been denied and he is provided with an Adverse Action Notice as required by ECOA. Which of the following pieces of information would not be included on the notice? a. Information on the credit reporting agency if the adverse action is based on his credit report b. Reasons for the denial of credit c. A description of credit he requested d. His credit score According to fair lending laws, which of the following may loan applicants be asked to disclose for HMDA data collection purposes? a. Their religion b. Their race c. If they will stop working once they have children d. If they plan to have more than one child Finance charges always include which of the following? a. Mortgage broker fee b. Title insurance charges c. Document preparation fees d. Credit report fee Which of the following is not included in calculating the APR? a. Discount points b. Underwriting fees c. PMI d. Escrow fees The amount of the down payment, the amount of the finance charge, or the number of payments needed are all examples of _______________ under TILA. a. Components of the finance charge b. Components of the APR c. Trigger terms d. Prohibited disclosures A borrower has gone to settlement for a cash-out refinance on Tuesday for his principal residence. His rescission period is over at midnight on Friday. According to the provisions specified under federal law, what is the first possible day the loan could fund? a. Tuesday b. Friday c. Saturday d. Monday, the following week HOEPA was enacted as a part of: a. HMDA b. ECOA c. RESPA d. TILA Closed-end loans with rates that exceed the average prime offer rate, but are not high enough to trigger protections under HOEPA, are known as: a. Reverse mortgages b. Subprime mortgage loans c. Higher-priced mortgage loans d. Qualified high-cost mortgages XYZ Mortgage Company just mailed a Closing Disclosure to a consumer. The waiting period prior to closing will begin: a. On the date that the Closing Disclosure is mailed b. The next business day after the Closing Disclosure is mailed c. The third business day after the Closing Disclosure is mailed d. The day on which the company received a completed, signed loan application The mandatory waiting period between issuance of disclosures and consummation may be waived: a. Using a pre-printed form from the lender b. If the consumer requests a waiver due to a bona fide financial emergency c. If the loan originator waives it for the consumer d. If the loan is a qualified mortgage There is a ____ accuracy tolerance for amounts stated on the Loan Estimate and the actual closing costs if the consumer is allowed to shop for his/her own settlement service provider. a. 0% b. 10% c. 5% d. 15% All but which of the following may serve as a legal, non-discriminatory basis for denying a mortgage loan application? a. The loan applicant has a credit score of 530 and a history of delinquencies on previous loans b. The loan applicant's debt-to-income ratio is 56% c. The consumer has no cash for a down payment d. The consumer is purchasing a home located in a neighborhood primarily occupied by minorities The Loan Originator Compensation Rule is intended to discourage which of the following practices? a. Steering b. Redlining c. Property flipping d. Air loans The Loan Originator Compensation Rule defines compensation to include all of the following, except: a. Salaries, bonuses, and commissions b. Awards, services, trips, and similar benefits c. Fees charged and retained by a mortgage loan originator d. Payments collected by a mortgage company for services other than loan origination services HOEPA would not apply to: a. An adjustable-rate mortgage loan b. A bridge loan to finance construction c. A purchase money mortgage loan d. A closed-end home equity loan If a creditor denies an application for a first lien mortgage, a copy of the appraisal: a. Is not required to be provided to the consumer b. Must be included with the notice of adverse action c. Must be provided within 30 days of the decision to deny d. Is not required to be provided unless requested in writing Lenders must report detailed information about loan transactions and demographic information concerning borrowers. Which of the following laws creates that reporting requirement? a. HMDA b. RESPA c. TILA d. Gramm-Leach-Bliley Act Suspicious Activity Reports (SARs) are used to help detect and prevent: a. Loan flipping b. Discriminatory lending practices c. Money laundering d. Subprime lending Under the Homeowners Protection Act, borrowers can request that lenders cancel PMI when their loan balance is less than ____, or a lender may collect PMI until ____ loan-to-value is reached. a. 65% / 50% b. 78% / 62% c. 80% / 65% d. 80% / 78% If a mortgage broker decides to use telemarketing to establish leads for loan origination, which of the following should occur? a. The broker should invest in a state-of-the-art predictive dialer b. The broker should stop calling current customers unless they have given consent c. The broker should only call former and current customers to ask for referrals d. The broker should obtain access to the Do-Not-Call Registry If a consumer opens an account online, the Gramm-Leach-Bliley Act states that what period of time constitute