Practice SAFE Exam Questions

Practice SAFE Exam Questions Which federal law requires that the Good Faith Estimate be provided to the borrower within three business days of the time, a loan application is taken? A. ECOA B. HMDA C. RESPA D. TILA - C What type of scam entails homeowners who are encouraged to refinance their property over and over until little or no equity remains? A. extreme lending B. loan flipping C. property skimming D. reverse equity - B After a loan closing, funds are disbursed. When are the funds disbursed for an owner-occupied, residential refinance? A. after the three business-day rescission period B. at the time of the loan closing C. five business days after the closing D. right before the loan closing - A What is the adjustable number used to compute the interest rate on an ARM called? A. cap B. index C. margin D. prepayment - B A borrower is buying a house for $180,000. He provides a down payment of $40,000. If he pays three discount points, what is the total cost of the points? A. $4,200 B. $4,667 C. $5,400 D. $6,000 - A Which is NOT a purpose for the Mortgage Servicing Disclosure Statement? A. to disclose the percentages of the loan closings this lender has serviced in the last three years B. to inform borrowers that they have certain rights under the law C. to inform the consumer the likelihood that the mortgage could be sold D. to inform the consumer the likelihood that the servicing of the mortgage will be sold - C A Latina applies to a mortgage company for a home loan. She is refused based on the reputation of the neighborhood for a high number of foreclosures. This is an example of what illegal practice? A. blockbusting B. puffing C. redlining D. steering - C Which act establishes disclosure requirements and prohibits equity stripping and other abusive practices in connection with "high cost" mortgages? A. Community Reinvestment Act (CRA) B. Home Mortgage Disclosure Act (HMDA) C. Home Ownership and Equity Protection Act (HOEPA) D. Homeowners Protection Act (HPA) - C The type of mortgage that can provide the borrower with a monthly check instead of the borrower paying a monthly payment is known as A. conforming loan. B. graduated payment mortgage. C. nonconforming loan. D. reverse mortgage. - D According to the Fair Credit Reporting Act, if adverse action is taken against a credit applicant because of information on a credit report, the lender who used that report is required to