Mortgage loan originator
What is used to determine the interest rate chang on an ARM? - ANS Index and margin
Which of the following loan types is best described as a loan with a payment schedule made up of a
series of small periodic payments and a larger lump sum due upon maturity? - ANS A loan with a
balloon payment provision
Fannie Mae and Freddie Mac securitize what type of mortgage loans? - ANS Convention/conforming
loans
Which of the following types of loans offers backing from the federal government without using
taxpayer dollars - ANS FHA Loans
What is Fannie Mae's primary function in the secondary market? - ANS To replenish lenders funds for
new loans by purchasing loans that lenders have already funded and closed.
The ability to repay rule applies to - ANS Most lending transactions other than those for reverse
mortgages and open-ended loans
Community Mortgage Bank (CMB) is a small creditor that holds the loans it originates in its portfolio
until they are paid in full. CMB Tries to limit its transaction to those for qualified mortgages. In a balloon
payment QM transaction, the transaction must neet all the following criteria, except: - ANS The
borrower must have a debt-to-income ratio of no more that 43%
Annual percentage rate - ANS "APR"
Which of the following pieces of personal information is a borrower asked to provide voluntarily on the
loan application? - ANS Race,ethnicity and sex
,VA loans requirs a funding fee under all of the following conditions, except: - ANS The veteran is
disabled
The DRI standard for an FHA loan is ____, and the standard for a VA loan is _______. - ANS 43%/41%
In order for a home loan to be a qualified mortgage, the debt to income ratio may not exceed. - ANS
43%
Appraisals that use the sales comparison approach include which of the followin? - ANS Comparison of
the value for three similar, recently sold properties
In which of the followinf transactions must the CFPB's "your home loan tool kit" booklet be provides? -
ANS A home purchase
Tax returns for the past two years. - ANS Joan Johnson is a salesperson who is paid 100% commission.
What type of documentation would you ask her to provide as proof of her income for loan qualification?
Ten years - ANS Bankruptcy information will remain on a consumers credit report for
Four times the amount of the veterans entitlement - ANS The VA guarantee covers up to what amount
of the veterans entitlement?
70%/81%/90% - ANS A borrower has applied for a refinance on her property valued at $235,000. She
currently has a HELLC with a $47,000 limit and currently owes $25,850. The borrower has applied for a
first mortgage of $164,500. Which of the following LTV, CLTV, and HLTV are accurate based on this
information ?
, Which if the following is avaliable to a borrower when the subject property is located in a flood zone and
flood insurance is required? - ANS FEMA's National Flood Insurance Program
To cover the risk of lending to a consumer without sufficient down payment - ANS PMI is used to serve
what purpose?
To determine if the borrower is finanically capable of repaying the loan - ANS Why would a mortgage
lender analyze a borrower's credit capacity?
Sales comparison approach - ANS On which approach do appraisers place the most weight in reaching a
value conclusion for conforming loans?
The process of allowing a broker to originate and close a loan in his or her own name before transferring
the loan to the lender providing the funds - ANS Table funding
Regulation z - ANS Advertising an attractive interest rate that a mortgage professional is not at liberty to
offer is a major ethical offense and violation of
The government national mortgage association - ANS Ginnie Mar GNMA
Both the hazardous insurance company and the mortgage broker - ANS A hazard insurance company
hosts a dinner for the employees of a mortgage broker. The designated broker encourages the
employees to send clients to the insurance company. Who has violated RESPA
The appraiser bas provides valuations that used inappropriate comparables, included errors and were
generally inaccurate - ANS In which of the following cases would it be permissible for a mortgage
professional to withhold compensation to an appraiser?
The applicant is too young to enter in a contract - ANS According to fair lending laws, age may be
considered as a favor in denying a loan application if
What is used to determine the interest rate chang on an ARM? - ANS Index and margin
Which of the following loan types is best described as a loan with a payment schedule made up of a
series of small periodic payments and a larger lump sum due upon maturity? - ANS A loan with a
balloon payment provision
Fannie Mae and Freddie Mac securitize what type of mortgage loans? - ANS Convention/conforming
loans
Which of the following types of loans offers backing from the federal government without using
taxpayer dollars - ANS FHA Loans
What is Fannie Mae's primary function in the secondary market? - ANS To replenish lenders funds for
new loans by purchasing loans that lenders have already funded and closed.
The ability to repay rule applies to - ANS Most lending transactions other than those for reverse
mortgages and open-ended loans
Community Mortgage Bank (CMB) is a small creditor that holds the loans it originates in its portfolio
until they are paid in full. CMB Tries to limit its transaction to those for qualified mortgages. In a balloon
payment QM transaction, the transaction must neet all the following criteria, except: - ANS The
borrower must have a debt-to-income ratio of no more that 43%
Annual percentage rate - ANS "APR"
Which of the following pieces of personal information is a borrower asked to provide voluntarily on the
loan application? - ANS Race,ethnicity and sex
,VA loans requirs a funding fee under all of the following conditions, except: - ANS The veteran is
disabled
The DRI standard for an FHA loan is ____, and the standard for a VA loan is _______. - ANS 43%/41%
In order for a home loan to be a qualified mortgage, the debt to income ratio may not exceed. - ANS
43%
Appraisals that use the sales comparison approach include which of the followin? - ANS Comparison of
the value for three similar, recently sold properties
In which of the followinf transactions must the CFPB's "your home loan tool kit" booklet be provides? -
ANS A home purchase
Tax returns for the past two years. - ANS Joan Johnson is a salesperson who is paid 100% commission.
What type of documentation would you ask her to provide as proof of her income for loan qualification?
Ten years - ANS Bankruptcy information will remain on a consumers credit report for
Four times the amount of the veterans entitlement - ANS The VA guarantee covers up to what amount
of the veterans entitlement?
70%/81%/90% - ANS A borrower has applied for a refinance on her property valued at $235,000. She
currently has a HELLC with a $47,000 limit and currently owes $25,850. The borrower has applied for a
first mortgage of $164,500. Which of the following LTV, CLTV, and HLTV are accurate based on this
information ?
, Which if the following is avaliable to a borrower when the subject property is located in a flood zone and
flood insurance is required? - ANS FEMA's National Flood Insurance Program
To cover the risk of lending to a consumer without sufficient down payment - ANS PMI is used to serve
what purpose?
To determine if the borrower is finanically capable of repaying the loan - ANS Why would a mortgage
lender analyze a borrower's credit capacity?
Sales comparison approach - ANS On which approach do appraisers place the most weight in reaching a
value conclusion for conforming loans?
The process of allowing a broker to originate and close a loan in his or her own name before transferring
the loan to the lender providing the funds - ANS Table funding
Regulation z - ANS Advertising an attractive interest rate that a mortgage professional is not at liberty to
offer is a major ethical offense and violation of
The government national mortgage association - ANS Ginnie Mar GNMA
Both the hazardous insurance company and the mortgage broker - ANS A hazard insurance company
hosts a dinner for the employees of a mortgage broker. The designated broker encourages the
employees to send clients to the insurance company. Who has violated RESPA
The appraiser bas provides valuations that used inappropriate comparables, included errors and were
generally inaccurate - ANS In which of the following cases would it be permissible for a mortgage
professional to withhold compensation to an appraiser?
The applicant is too young to enter in a contract - ANS According to fair lending laws, age may be
considered as a favor in denying a loan application if
