NATIONAL AND UST MORTGAGE PRACTICE EXAM 4 |
QUIZ SMART | SCORE HIGH | GUARANTEED
ACCURACY!
ECOA applies to the extension of credit for:
A. Loans secured by a first or subordinate lien on residential property
B. Residential, business, commercial, and agricultural loans
C. Business, commercial, and agricultural loans
D. All credit other than government loans - Answer: B. Residential, business,
commercial, and agricultural loans
ECOA has a wider range than RESPA and TILA, beyond just loans related to residential
properties. The law also covers loans for businesses, commercial, and agricultural
loans.
Which law restricts the sharing of nonpublic personal information given when a
consumer applies for a mortgage loan?
A. Fair Credit Reporting Act
B. FTC Disposal Rules
C. Gramm-Leach-Bliley Act
D. Consumer Regulatory Protection Act - Answer: C. Gramm-Leach-Bliley Act
The Gramm-Leach-Bliley Act is the federal law that limits or restricts the use of a
consumer's nonpublic personal information.
A state-licensed loan originator is:
A. Licensed by the NMLS
B. Not an employee of a depository institution
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
,C. Identified by the unique identifier of his/her employer
D. An employee of a subsidiary which is owned or controlled by a depository institution -
Answer: B. Not an employee of a depository institution
A state-licensed loan originator is an employee of a non-depository institution and is
licensed by the state.
HMDA data is collected and aggregated to determine:
A. The success rate of nontraditional mortgage loans
B. Whether the success of lending terms varies in different geographic areas
C. The extent of creditor compliance with privacy protection laws
D. Whether different credit terms are offered to members of protected classes - Answer:
D. Whether different credit terms are offered to members of protected classes
HMDA (Home Mortgage Disclosure Act) data is collected and aggregated to determine
whether different credit terms are offered to members of different protected classes.
A balloon rider, a prepayment penalty rider and a second-home rider may all be part of:
A. A title insurance policy
B. A deed of trust
C. A note
D. A power-of-attorney agreement - Answer: B. A deed of trust
A deed of trust is used to secure a note. A deed can carry a rider, or an addendum,
which may include a balloon rider, a prepayment penalty rider and a second-home rider,
among others.
How many total hours of ethics are required, at minimum, for continuing education?
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
, A. Three
B. Eight
C. Two
D. Eleven - Answer: C. Two
The NMLS (Nationwide Mortgage Licensing System and Registry) requires, as a federal
minimum, at least two hours of ethics training within the total eight hours of education
required for continuing education.
Intentionally targeting borrowers in poor or underserved areas with expensive high-cost
loans is considered illegal under:
A. TILA
B. Homeowners Protection Act
C. HOEPA
D. RESPA - Answer: C. HOEPA
HOEPA (Home Ownership and Equity Protection Act) prohibits the intentional targeting
of poor or underserved areas with expensive high-cost loans, which is a practice known
as reverse redlining.
While verifying identity, there are several consistent indicators that suggest identity theft.
Which of the following is not an example?
A. Co-borrowers call each other by nicknames that do not relate to the names on the
application
B. Credit history is inconsistent with the borrower's age
C. Social Security Number given on the application is consistent with that found on the
credit report, W-2s, and paystubs
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
QUIZ SMART | SCORE HIGH | GUARANTEED
ACCURACY!
ECOA applies to the extension of credit for:
A. Loans secured by a first or subordinate lien on residential property
B. Residential, business, commercial, and agricultural loans
C. Business, commercial, and agricultural loans
D. All credit other than government loans - Answer: B. Residential, business,
commercial, and agricultural loans
ECOA has a wider range than RESPA and TILA, beyond just loans related to residential
properties. The law also covers loans for businesses, commercial, and agricultural
loans.
Which law restricts the sharing of nonpublic personal information given when a
consumer applies for a mortgage loan?
A. Fair Credit Reporting Act
B. FTC Disposal Rules
C. Gramm-Leach-Bliley Act
D. Consumer Regulatory Protection Act - Answer: C. Gramm-Leach-Bliley Act
The Gramm-Leach-Bliley Act is the federal law that limits or restricts the use of a
consumer's nonpublic personal information.
A state-licensed loan originator is:
A. Licensed by the NMLS
B. Not an employee of a depository institution
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
,C. Identified by the unique identifier of his/her employer
D. An employee of a subsidiary which is owned or controlled by a depository institution -
Answer: B. Not an employee of a depository institution
A state-licensed loan originator is an employee of a non-depository institution and is
licensed by the state.
HMDA data is collected and aggregated to determine:
A. The success rate of nontraditional mortgage loans
B. Whether the success of lending terms varies in different geographic areas
C. The extent of creditor compliance with privacy protection laws
D. Whether different credit terms are offered to members of protected classes - Answer:
D. Whether different credit terms are offered to members of protected classes
HMDA (Home Mortgage Disclosure Act) data is collected and aggregated to determine
whether different credit terms are offered to members of different protected classes.
A balloon rider, a prepayment penalty rider and a second-home rider may all be part of:
A. A title insurance policy
B. A deed of trust
C. A note
D. A power-of-attorney agreement - Answer: B. A deed of trust
A deed of trust is used to secure a note. A deed can carry a rider, or an addendum,
which may include a balloon rider, a prepayment penalty rider and a second-home rider,
among others.
How many total hours of ethics are required, at minimum, for continuing education?
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
, A. Three
B. Eight
C. Two
D. Eleven - Answer: C. Two
The NMLS (Nationwide Mortgage Licensing System and Registry) requires, as a federal
minimum, at least two hours of ethics training within the total eight hours of education
required for continuing education.
Intentionally targeting borrowers in poor or underserved areas with expensive high-cost
loans is considered illegal under:
A. TILA
B. Homeowners Protection Act
C. HOEPA
D. RESPA - Answer: C. HOEPA
HOEPA (Home Ownership and Equity Protection Act) prohibits the intentional targeting
of poor or underserved areas with expensive high-cost loans, which is a practice known
as reverse redlining.
While verifying identity, there are several consistent indicators that suggest identity theft.
Which of the following is not an example?
A. Co-borrowers call each other by nicknames that do not relate to the names on the
application
B. Credit history is inconsistent with the borrower's age
C. Social Security Number given on the application is consistent with that found on the
credit report, W-2s, and paystubs
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
