1
RMLO - Champions School of Real Estate
Exam Questions with 100% Correct
Answers | Verified | Updated (Actual
Exam)
A market for the purchase and sale of existing mortgages designed to provide
greater liquidity for selling mortgages is called the ________. -
(ANSWER)secondary market
The Federal agency established to restore Fannie Mae and Freddie Mac to a
sound and solvent financial condition is _____. - (ANSWER)Federal Housing
Finance Agency (FHFA)
The ____ guarantee allows mortgage lenders to obtain a better price for their
loan in the capital markets. - (ANSWER)Gov't. National Mortgage Association -
Ginnie Mae
The federally chartered corporation was established in 1970 for the purpose of
purchasing mortgages in the secondary market is known as ______. -
(ANSWER)Federal Home Loan Mortgage Corporation - Freddie Mac
The line of credit used by a mortgage lender to close and fund a loan before
selling it in the secondary market is called a ____. - (ANSWER)warehouse line
Today the _____ specializes as the intermediary between the borrower and the
lender. - (ANSWER)mortgage broker
,2
A _____ is a mortgage that is NOT guaranteed or insured by any government
agency. - (ANSWER)conventional loan
A ____ seeks to originate numerous loan transactions and then sell these
mortgages to large investors. - (ANSWER)mortgage banker
The Good Faith Estimate disclosure form is used primarily for _____ transactions.
- (ANSWER)reverse mortgage
The disclosures related to the transfer of ______ are required for first mortgage
liens of federally related mortgage loans, including all financing transactions of
such loans. - (ANSWER)mortgage servicing
_____ sets limits on the amounts that a lender may require a borrower to put into
an escrow account for purposes of paying taxes, hazard insurance and other
charges related to the property. - (ANSWER)RESPA Section 10
Payments in excess of the reasonable value of goods provided or services
rendered are considered _____. - (ANSWER)kickbacks
If a lender has either an affiliate relationship or a direct ownership interest of
more than one percent in a provider of settlement services and they directly refer
business to the provider, it is per Reg X a _____. - (ANSWER)affiliated business
arrangement (ABA)
, 3
Reg X requires the ______ must be provided at settlement, or within 45 calendar
days of settlement. - (ANSWER)initial escrow settlement statement
The ____ is the cost of a borrower's credit calculated as an annual rate -
(ANSWER)APR
Reg Z requires an HPML creditor to obtain a second written ____ based on an
interior inspection of the property, at no cost to the borrower, in connection with
certain flipped properties. - (ANSWER)appraisal
Rescission business days are defined by Reg Z to include all calendar days EXCEPT
_____. - (ANSWER)Sundays and federal holidays
Reg Z provides a presumption of compliance with the ability-to-repay
requirement for creditors making ______. - (ANSWER)Qualified Mortgages
TILA requires mortgage loan originators to make certain material disclosures on
loans subject to the RESPA within _____ after receipt of a written application. -
(ANSWER)3 business days
Section 32 loans are also known as ______ loans. - (ANSWER)high-cost
RMLO - Champions School of Real Estate
Exam Questions with 100% Correct
Answers | Verified | Updated (Actual
Exam)
A market for the purchase and sale of existing mortgages designed to provide
greater liquidity for selling mortgages is called the ________. -
(ANSWER)secondary market
The Federal agency established to restore Fannie Mae and Freddie Mac to a
sound and solvent financial condition is _____. - (ANSWER)Federal Housing
Finance Agency (FHFA)
The ____ guarantee allows mortgage lenders to obtain a better price for their
loan in the capital markets. - (ANSWER)Gov't. National Mortgage Association -
Ginnie Mae
The federally chartered corporation was established in 1970 for the purpose of
purchasing mortgages in the secondary market is known as ______. -
(ANSWER)Federal Home Loan Mortgage Corporation - Freddie Mac
The line of credit used by a mortgage lender to close and fund a loan before
selling it in the secondary market is called a ____. - (ANSWER)warehouse line
Today the _____ specializes as the intermediary between the borrower and the
lender. - (ANSWER)mortgage broker
,2
A _____ is a mortgage that is NOT guaranteed or insured by any government
agency. - (ANSWER)conventional loan
A ____ seeks to originate numerous loan transactions and then sell these
mortgages to large investors. - (ANSWER)mortgage banker
The Good Faith Estimate disclosure form is used primarily for _____ transactions.
- (ANSWER)reverse mortgage
The disclosures related to the transfer of ______ are required for first mortgage
liens of federally related mortgage loans, including all financing transactions of
such loans. - (ANSWER)mortgage servicing
_____ sets limits on the amounts that a lender may require a borrower to put into
an escrow account for purposes of paying taxes, hazard insurance and other
charges related to the property. - (ANSWER)RESPA Section 10
Payments in excess of the reasonable value of goods provided or services
rendered are considered _____. - (ANSWER)kickbacks
If a lender has either an affiliate relationship or a direct ownership interest of
more than one percent in a provider of settlement services and they directly refer
business to the provider, it is per Reg X a _____. - (ANSWER)affiliated business
arrangement (ABA)
, 3
Reg X requires the ______ must be provided at settlement, or within 45 calendar
days of settlement. - (ANSWER)initial escrow settlement statement
The ____ is the cost of a borrower's credit calculated as an annual rate -
(ANSWER)APR
Reg Z requires an HPML creditor to obtain a second written ____ based on an
interior inspection of the property, at no cost to the borrower, in connection with
certain flipped properties. - (ANSWER)appraisal
Rescission business days are defined by Reg Z to include all calendar days EXCEPT
_____. - (ANSWER)Sundays and federal holidays
Reg Z provides a presumption of compliance with the ability-to-repay
requirement for creditors making ______. - (ANSWER)Qualified Mortgages
TILA requires mortgage loan originators to make certain material disclosures on
loans subject to the RESPA within _____ after receipt of a written application. -
(ANSWER)3 business days
Section 32 loans are also known as ______ loans. - (ANSWER)high-cost
