NATIONAL AND UST MORTGAGE PRACTICE EXAM 6 |
QUIZ SMART | SCORE HIGH | GUARANTEED
ACCURACY!
All of the following are included within the authority of the Commissioner, except:
A. Enter a cease and desist order
B. Order restitution and monetary penalties
C. Subpoena witnesses and documents
D. Issuing an order to a former employer of a loan originator to turn over records -
Answer: D. Issuing an order to a former employer of a loan originator to turn over
records
Commissioner does not have authority to examine records of former employers of loan
originator.
Cindy bought a home and closed on a 6.0% rate for 30 years. The loan includes a
payment feature that allows Cindy to make a $1,400/month payment for the first five
years, and a $1,800/month payment for the remainder of the loan. What type of loan is
this?
A. Variable
B. ARM
C. Option ARM
D. Fixed rate - Answer: D. Fixed rate
This loan is a fixed-rate loan (at ^=6% for 30 years). The payment example shows an
interest-only feature for the first five years and then a fully-amortized payment for the
remainder of the loan.
The promissory note contains all of the following, except:
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
,A. A legal description of the property
B. A provision requiring notices be done in writing
C. The loan amount
D. The loan terms - Answer: A. A legal description of the property
The promissory note contain the borrower's name, loan amount, interest rate, loan
terms, and a provision requiring notices be done in writing. It does not contain a legal
description of the property.
Civil monetary penalties resulting from the failure to report data for HMDA are:
A. $1,000 per violation, with a maximum of $300,000 in fines annually
B. Calculated based on a penalty matrix, which considers good faith, previous
violations, and financial resources of the entity involved
C. Calculated based on a percentage of total loan amounts of mortgages in violation
D. $11,000 per violation, but can be increased to $25,000 for willful and knowing
violations - Answer: B. Calculated based on a penalty matrix, which considers good
faith, previous violations, and financial resources of the entity involved
HMDA (Home Mortgage Disclosure Act) uses a penalty matrix to determine fines for
violations. The matrix includes considerations for good faith, previous violations, and the
financial resources of the entity involved.
Homeownership counseling is required in transactions for all of the following, except:
A. Higher-priced mortgage loan
B. High-cost mortgage
C. Reverse mortgage
D. Negative amortization loan if the loan applicant is a first-time borrower - Answer: A.
Higher-priced mortgage loan
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
, Transactions for higher-priced mortgage loans do not include counseling requirements.
Generally, the first lien recorded has priority, with the possible exception of:
A. Mortgage liens
B. Mechanic's liens
C. Child support liens
D. Consensual liens - Answer: B. Mechanic's liens
The first lien recorded has priority. One possible exception is mechanic's liens,
depending on state law.
The Notice of Right to Cancel PMI is required by the:
A. Homeowners Protection Act
B. Equal Credit Opportunity Act
C. Truth-in-Lending Act
D. Real Estate Settlement Procedures Act - Answer: A. Homeowners Protection Act
The Notice of Right to Cancel PMI is required by the Homeowners Protection Act.
Which of the following fees must be included in the calculation of finance charges?
A. Appraisal fees
B. Seller's points
C. Credit reporting fees
D. Origination fees - Answer: D. Origination fees
TILA (Truth-In-Lending Act) requires charges for origination fees to be included when
calculating the finance charge.
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
QUIZ SMART | SCORE HIGH | GUARANTEED
ACCURACY!
All of the following are included within the authority of the Commissioner, except:
A. Enter a cease and desist order
B. Order restitution and monetary penalties
C. Subpoena witnesses and documents
D. Issuing an order to a former employer of a loan originator to turn over records -
Answer: D. Issuing an order to a former employer of a loan originator to turn over
records
Commissioner does not have authority to examine records of former employers of loan
originator.
Cindy bought a home and closed on a 6.0% rate for 30 years. The loan includes a
payment feature that allows Cindy to make a $1,400/month payment for the first five
years, and a $1,800/month payment for the remainder of the loan. What type of loan is
this?
A. Variable
B. ARM
C. Option ARM
D. Fixed rate - Answer: D. Fixed rate
This loan is a fixed-rate loan (at ^=6% for 30 years). The payment example shows an
interest-only feature for the first five years and then a fully-amortized payment for the
remainder of the loan.
The promissory note contains all of the following, except:
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
,A. A legal description of the property
B. A provision requiring notices be done in writing
C. The loan amount
D. The loan terms - Answer: A. A legal description of the property
The promissory note contain the borrower's name, loan amount, interest rate, loan
terms, and a provision requiring notices be done in writing. It does not contain a legal
description of the property.
Civil monetary penalties resulting from the failure to report data for HMDA are:
A. $1,000 per violation, with a maximum of $300,000 in fines annually
B. Calculated based on a penalty matrix, which considers good faith, previous
violations, and financial resources of the entity involved
C. Calculated based on a percentage of total loan amounts of mortgages in violation
D. $11,000 per violation, but can be increased to $25,000 for willful and knowing
violations - Answer: B. Calculated based on a penalty matrix, which considers good
faith, previous violations, and financial resources of the entity involved
HMDA (Home Mortgage Disclosure Act) uses a penalty matrix to determine fines for
violations. The matrix includes considerations for good faith, previous violations, and the
financial resources of the entity involved.
Homeownership counseling is required in transactions for all of the following, except:
A. Higher-priced mortgage loan
B. High-cost mortgage
C. Reverse mortgage
D. Negative amortization loan if the loan applicant is a first-time borrower - Answer: A.
Higher-priced mortgage loan
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
, Transactions for higher-priced mortgage loans do not include counseling requirements.
Generally, the first lien recorded has priority, with the possible exception of:
A. Mortgage liens
B. Mechanic's liens
C. Child support liens
D. Consensual liens - Answer: B. Mechanic's liens
The first lien recorded has priority. One possible exception is mechanic's liens,
depending on state law.
The Notice of Right to Cancel PMI is required by the:
A. Homeowners Protection Act
B. Equal Credit Opportunity Act
C. Truth-in-Lending Act
D. Real Estate Settlement Procedures Act - Answer: A. Homeowners Protection Act
The Notice of Right to Cancel PMI is required by the Homeowners Protection Act.
Which of the following fees must be included in the calculation of finance charges?
A. Appraisal fees
B. Seller's points
C. Credit reporting fees
D. Origination fees - Answer: D. Origination fees
TILA (Truth-In-Lending Act) requires charges for origination fees to be included when
calculating the finance charge.
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
