SAFE MORTGAGE LOAN ORIGINATOR
TEST QUESTIONS AND ANSWERS 100%
ACCURATE
An application for a mortgage loan has been denied and, as required by Regulation B,
an Adverse Action Notice has been delivered to the applicant .Which of the following is
not included on the Adverse Action Notice? - ANSWER-C. The right to dispute the credit
denial
Under the Home Ownership Equity Protection act which loan would be identified as a
high cost mortgage? - ANSWER-B. A $95,000 loan with $6175 in fees.
Which of the following is not considered a "prohibited basis." under Regulation B? -
ANSWER-C. Gender
The Home Mortgage Disclosure Act requires lenders to ask applicants and borrowers
for information regarding their ethnicity, race, and sex even when applications are made
entirely by telephone, mail, or the Internet. If an applicant submitting his or her
application in person fails to provide the information from an applicant's. - ANSWER-C.
Appearance and surname
What law requires mortgage loan originators to implement a written identity thief
prevention program to detect the warning signs of identity theft? - ANSWER-A. Fair and
Accurate Credit Transaction Act of 2003
Assume a refinance closing is set for Thursday and that all material disclosures and
notices are provided to the parties at the time. What is the first day this refinance could
fund? - ANSWER-D. Tuesday
RESPA places restrictions on lender's requirement for tax and insurance escrow
accounts. In addition, the servicer may add an amount to maintain a cushion no greater
than: - ANSWER-B. 1/6 of the estimated total annual payments from the account
Mortgage originators must provide the borrower with a copy of the Loan Estimate no
later than: - ANSWER-A. Three business days after the application is received
Mortgage loan originators who made cold calls must comply with the requirements of
the National Do-Not-Call registry and the Do-Not-Call rules. The loan originator needs to
update any download of the registry at least every: - ANSWER-A. 31 days
The Dodd-Frank Act establishes the Consumer Financial Protection Bureau as an
independent entity housed within the: - ANSWER-B. Federal Reserve Board
, What is the name of a closed-end, first lien, consumer credit transaction secured by the
consumer's principal dwelling with an annual percentage rate that exceeds the average
prime offer rate by 1.5 or more percentage points? - ANSWER-C. Higher-Priced loan
In order to meet the standards established in the Patriot Act an acceptable Customer
Identification Program must include procedures to: - ANSWER-B. Transmit details of
loan transactions to the Financial Crimes Enforcement Network.
Who ultimately assumes the responsibility of provoking the revised Loan Estimate and
the Closing Disclosure to the borrower? - ANSWER-B. The Creditor
A MIP is mandatory when a loan is: - ANSWER-C. An FHA loan
A loan made with real estate as security not involving any government participation in
the form of insuring or guaranteeing the loan is called a: - ANSWER-B. Conventional
Loan
A payment plan where borrowers make payments to principal and interest every two
weeks rather than once monthly is known as: - ANSWER-C. Biweekly Mortgage
What is the name of a mortgage loan that is secured by a pledge or real property, but
for which the borrower is not personally liable? - ANSWER-B. Non-Recourse Loan
A partially amortized mortgage loan with a final payment substantially larger than the
other payments is called - ANSWER-A. Balloon loan
This rate is equal to the margin plus the index and is usually rounded up to the nearest
one eighth of a percent: - ANSWER-B. Fully Indexed Rate
Unlike ordinary home equity loans, this loan does not require repayment as long as the
borrower lives in the home and is best described as a: - ANSWER-B. Reverse Mortgage
According to the CSBS/AARMR "Statement on Subprime Lending" certain adjustable-
rate mortgage products typically offered to subprime borrowers include all of the
following characteristics except: - ANSWER-C. Very low or minimum limits on how
much the payment amount or the interest rate may increase ("payment or rate caps") on
reset dates.
What is the name of the adjustable-rate mortgage index that utilizes the monthly
weighted average of the interest rate paid on checking and savings accounts offered by
financial institutions operating in the states of Arizona, California and Nevada? -
ANSWER-B. 11th District Costs of Funds Rate (COFI)
What is the name of the professional trade association that promotes communication
between and among non-bank state officials who are responsible for the administration
TEST QUESTIONS AND ANSWERS 100%
ACCURATE
An application for a mortgage loan has been denied and, as required by Regulation B,
an Adverse Action Notice has been delivered to the applicant .Which of the following is
not included on the Adverse Action Notice? - ANSWER-C. The right to dispute the credit
denial
Under the Home Ownership Equity Protection act which loan would be identified as a
high cost mortgage? - ANSWER-B. A $95,000 loan with $6175 in fees.
Which of the following is not considered a "prohibited basis." under Regulation B? -
ANSWER-C. Gender
The Home Mortgage Disclosure Act requires lenders to ask applicants and borrowers
for information regarding their ethnicity, race, and sex even when applications are made
entirely by telephone, mail, or the Internet. If an applicant submitting his or her
application in person fails to provide the information from an applicant's. - ANSWER-C.
Appearance and surname
What law requires mortgage loan originators to implement a written identity thief
prevention program to detect the warning signs of identity theft? - ANSWER-A. Fair and
Accurate Credit Transaction Act of 2003
Assume a refinance closing is set for Thursday and that all material disclosures and
notices are provided to the parties at the time. What is the first day this refinance could
fund? - ANSWER-D. Tuesday
RESPA places restrictions on lender's requirement for tax and insurance escrow
accounts. In addition, the servicer may add an amount to maintain a cushion no greater
than: - ANSWER-B. 1/6 of the estimated total annual payments from the account
Mortgage originators must provide the borrower with a copy of the Loan Estimate no
later than: - ANSWER-A. Three business days after the application is received
Mortgage loan originators who made cold calls must comply with the requirements of
the National Do-Not-Call registry and the Do-Not-Call rules. The loan originator needs to
update any download of the registry at least every: - ANSWER-A. 31 days
The Dodd-Frank Act establishes the Consumer Financial Protection Bureau as an
independent entity housed within the: - ANSWER-B. Federal Reserve Board
, What is the name of a closed-end, first lien, consumer credit transaction secured by the
consumer's principal dwelling with an annual percentage rate that exceeds the average
prime offer rate by 1.5 or more percentage points? - ANSWER-C. Higher-Priced loan
In order to meet the standards established in the Patriot Act an acceptable Customer
Identification Program must include procedures to: - ANSWER-B. Transmit details of
loan transactions to the Financial Crimes Enforcement Network.
Who ultimately assumes the responsibility of provoking the revised Loan Estimate and
the Closing Disclosure to the borrower? - ANSWER-B. The Creditor
A MIP is mandatory when a loan is: - ANSWER-C. An FHA loan
A loan made with real estate as security not involving any government participation in
the form of insuring or guaranteeing the loan is called a: - ANSWER-B. Conventional
Loan
A payment plan where borrowers make payments to principal and interest every two
weeks rather than once monthly is known as: - ANSWER-C. Biweekly Mortgage
What is the name of a mortgage loan that is secured by a pledge or real property, but
for which the borrower is not personally liable? - ANSWER-B. Non-Recourse Loan
A partially amortized mortgage loan with a final payment substantially larger than the
other payments is called - ANSWER-A. Balloon loan
This rate is equal to the margin plus the index and is usually rounded up to the nearest
one eighth of a percent: - ANSWER-B. Fully Indexed Rate
Unlike ordinary home equity loans, this loan does not require repayment as long as the
borrower lives in the home and is best described as a: - ANSWER-B. Reverse Mortgage
According to the CSBS/AARMR "Statement on Subprime Lending" certain adjustable-
rate mortgage products typically offered to subprime borrowers include all of the
following characteristics except: - ANSWER-C. Very low or minimum limits on how
much the payment amount or the interest rate may increase ("payment or rate caps") on
reset dates.
What is the name of the adjustable-rate mortgage index that utilizes the monthly
weighted average of the interest rate paid on checking and savings accounts offered by
financial institutions operating in the states of Arizona, California and Nevada? -
ANSWER-B. 11th District Costs of Funds Rate (COFI)
What is the name of the professional trade association that promotes communication
between and among non-bank state officials who are responsible for the administration
