The SAFE Mortgage Loan Originator National Exam Study Guide | With Questions & Answers (100% Correct)

The SAFE Mortgage Loan Originator National Exam Study Guide | With Questions & Answers (100% Correct) The SAFE Mortgage Loan Originator National Exam Study Guide | With Questions & Answers (100% Correct) 1. A discount point is BEST described as a charge the borrower pays to: - ANSWER - A. A lender to decrease the interest rate on the mortgage loan 2. A buyer has made an earnest money payment of $5,000. The buyer pays an additional $2,000 in option money to be credited at closing on a property with a sale price of $160,000. If the required down payment is 20%, how much additional money will the buyer need to provide toward the down payment at closing? - ANSWER - D. $25,000 3. If an applicant works 40 hours every week and is paid $13.52 per hour, what is the applicant's monthly income? - ANSWER - B. $2,343.47 4. The requirement for private mortgage insurance is generally discontinued when the loan-to-value ratio falls below: - ANSWER - C. 80 % 5. Which of the following documents itemizes all settlement costs including lender charges? - ANSWER - B. HUD-1/Closing Disclosure 6. According to the Truth-in-Lending Act (TILA), the term "refinance" applies to: - ANSWER - D. The satisfaction of an existing obligation and its replacement by a new obligation 7. What does a loan originator use to determine the estimated value of a property based on an analytical comparison of similar property sales? - ANSWER - A. An appraisal 8. Which of the following methods of disclosure does NOT meet the requirements of the Equal Credit Opportunity Act (ECOA)? - ANSWER - C. Telephone 9. The term "20 basis points" expressed as a percentage is: - ANSWER - B. 0.20% 10. According to the Truth-in-Lending Act (TILA), which of the following fees is EXCLUDED from the calculation of the annual percentage rate? - ANSWER - A. Hazard insurance 11. FHA loans are: - ANSWER - B. 100% insured 12. The late fee for a conventional loan is: - ANSWER - C. 5 % of principal and interest 13. A funding fee is required for a: - ANSWER - B. VA loan