RMLO - SAFE Exam: Questions With Detailed Answers
Higher-Priced Mortgage Loans (HPML) are defined as closed-end residential
mortgage loans secured by the consumer's principal dwelling with an APR
that exceed the average prime offer rate (APOR) for comparable transactions
by: Right Ans - 2.5 percentage points for a first lien jumbo residential
mortgage loan
Under ECOA, when is a disclosure concerning the applicant's right to obtain a
copy of the appraisal report due the consumer? Right Ans - Within three
business days after receipt of the written application.
Under the Red Flags Rule, mortgage loan originators must develop a written
program that identifies and detects the warning signs of: Right Ans -
Identity Theft.
Which of the following is not a "triggering term" under Reg Z?
- Amount of the down payment
- Number of payments or period of repayment
- Annual Percentage Rate
- Amount of any payment Right Ans - Annual Percentage Rate (APR)
Under the TILA, when a consumer rescinds a transaction, the security interest
giving rise to the right of the rescission becomes void and: Right Ans - The
consumer will no longer be liable for any amount, including any finance
charge.
Which of the following would not require a new waiting period for the Closing
Disclosure?
- Unexpected discoveries on a final walk-through requiring a seller credit to
the buyer.
- The loan product changes
- The APR on the loan changes
- A prepayment penalty is added to the loan. Right Ans - Unexpected
discoveries on a final walk-through requiring a seller credit to the buyer.
Which of the following transactions are covered by the TILA-RESPA rule?
- Home Equity Lines of Credit
- Reverse Mortgage Loans
, - Construction-only Loans
- Chattel-dwelling loans Right Ans - Construction-only Loans
A transaction is a HOEPA mortgage if its points and fees exceed the following
threshold: Right Ans - 5% of the total loan amount for a loan amount of
$21,549 or more.
Activities carried out by the HUD's Office of Fair Housing and Equal
Opportunity include implementing and enforcing the: Right Ans - Fair
Housing Act
The ESign Act requires all of the following except:
- Consent of the consumer's to receive the info electronically
- A consumer must be provided with info regarding any right or option to
receive a disclosure in paper form.
- Provide any information to the consumer of their right to withdraw consent
to have records provided electronically, including any conditions,
consequences, or fees associated with doing so.
- That a signature, contract, or other record relating to any and all
transactions may not be denied legal effect solely because it is in electronic
form. Right Ans - That a signature, contract, or other record may not be
denied legal effect solely because it is in electronic form.
When a loan gains status as a Qualified Mortgage, it carries with it a legal
presumption of complying with the Ability to Repay requirements. The CFPB's
final rule creates two different kinds of legal presumption Right Ans - Safe
Harbor & Rebuttable Presumption
Which of the following is not considered one of the three main categories of a
QM?
- General QM Loans: Any loan that meets the product feature requirements
with a DTI of 43% or less is a QM.
- Temporary QM Exclusion for AUS Approval: Eligible for purchase, guarantee,
or insurance by a GSE, FHA, VA, or USDA is QM regardless of DTI
- Conforming QM Loan - Any loan that is equal to or less than the dollar
amount established by the conforming loan limit set by Fannie Mae/Freddie
Mac
- Small Creditor QM Loans - Lenders less than $2B in assets and originate 500
or less first mortgages per year. Right Ans - Conforming QM Loan
Higher-Priced Mortgage Loans (HPML) are defined as closed-end residential
mortgage loans secured by the consumer's principal dwelling with an APR
that exceed the average prime offer rate (APOR) for comparable transactions
by: Right Ans - 2.5 percentage points for a first lien jumbo residential
mortgage loan
Under ECOA, when is a disclosure concerning the applicant's right to obtain a
copy of the appraisal report due the consumer? Right Ans - Within three
business days after receipt of the written application.
Under the Red Flags Rule, mortgage loan originators must develop a written
program that identifies and detects the warning signs of: Right Ans -
Identity Theft.
Which of the following is not a "triggering term" under Reg Z?
- Amount of the down payment
- Number of payments or period of repayment
- Annual Percentage Rate
- Amount of any payment Right Ans - Annual Percentage Rate (APR)
Under the TILA, when a consumer rescinds a transaction, the security interest
giving rise to the right of the rescission becomes void and: Right Ans - The
consumer will no longer be liable for any amount, including any finance
charge.
Which of the following would not require a new waiting period for the Closing
Disclosure?
- Unexpected discoveries on a final walk-through requiring a seller credit to
the buyer.
- The loan product changes
- The APR on the loan changes
- A prepayment penalty is added to the loan. Right Ans - Unexpected
discoveries on a final walk-through requiring a seller credit to the buyer.
Which of the following transactions are covered by the TILA-RESPA rule?
- Home Equity Lines of Credit
- Reverse Mortgage Loans
, - Construction-only Loans
- Chattel-dwelling loans Right Ans - Construction-only Loans
A transaction is a HOEPA mortgage if its points and fees exceed the following
threshold: Right Ans - 5% of the total loan amount for a loan amount of
$21,549 or more.
Activities carried out by the HUD's Office of Fair Housing and Equal
Opportunity include implementing and enforcing the: Right Ans - Fair
Housing Act
The ESign Act requires all of the following except:
- Consent of the consumer's to receive the info electronically
- A consumer must be provided with info regarding any right or option to
receive a disclosure in paper form.
- Provide any information to the consumer of their right to withdraw consent
to have records provided electronically, including any conditions,
consequences, or fees associated with doing so.
- That a signature, contract, or other record relating to any and all
transactions may not be denied legal effect solely because it is in electronic
form. Right Ans - That a signature, contract, or other record may not be
denied legal effect solely because it is in electronic form.
When a loan gains status as a Qualified Mortgage, it carries with it a legal
presumption of complying with the Ability to Repay requirements. The CFPB's
final rule creates two different kinds of legal presumption Right Ans - Safe
Harbor & Rebuttable Presumption
Which of the following is not considered one of the three main categories of a
QM?
- General QM Loans: Any loan that meets the product feature requirements
with a DTI of 43% or less is a QM.
- Temporary QM Exclusion for AUS Approval: Eligible for purchase, guarantee,
or insurance by a GSE, FHA, VA, or USDA is QM regardless of DTI
- Conforming QM Loan - Any loan that is equal to or less than the dollar
amount established by the conforming loan limit set by Fannie Mae/Freddie
Mac
- Small Creditor QM Loans - Lenders less than $2B in assets and originate 500
or less first mortgages per year. Right Ans - Conforming QM Loan
