National & UST Mortgage Practice Exam
#7 Questions and Answers Graded A+
Information that would be protected as nonpublic personal information under the
Gramm-Leach-Bliley Act includes which of the following?
(A) A customer's credit report.
(B) Information in government real estate records.
(C) Listed telephone numbers provided by consumers.
(D) Government records of recorded liens. - Correct answer-(A) A customer's
credit report.
Virtually, every residential transaction involves an estate that is held in
__________, the desired form of holding ownership to property because it has the
fewest restrictions.
(A) Foreclosure
(B) Fee simple
(C) Short sale
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,(D) Deed-in-lieu - Correct answer-(B) Fee simple
Under the Homeowners Protection Act, borrowers can request that lenders cancel
PMI when their loan balance is less than __________, or a lender may collect PMI
until __________ loan-to-value is reached.
(A) 65%, 50%
(B) 78%, 62%
(C) 80%, 78%
(D) 80%, 65% - Correct answer-(C) 80%, 78%
Which of the following is not true regarding qualified mortgages?
(A) They generally may not have a DTI ratio of more than 43%.
(B) They must have a fixed interest rate.
(C) The loan term may not exceed 30 years.
(D) The loan may not include a feature that permits negative amortization. -
Correct answer-(B) They must have a fixed interest rate.
Which of the following would not be required for an adjustable rate home equity
plan?
(A) What You Should Know about Home Equity Lines of Credit
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,(B) Disclosure of APR fees, and transaction requirements.
(C) Disclosure of frequency of APR changes and a description of how the APR
will be determined.
(D) Loan Estimate and Closing Disclosure - Correct answer-(D) Loan Estimate and
Closing Disclosure
How is the margin determined?
(A) The broker determines margin based on the commission structure on the loan.
(B) The lender sets the margin by choosing an index to tie it to.
(C) The borrower chooses which margin he or she prefers.
(D) The lender sets the margin based on its costs and sought after profit margin. -
Correct answer-(D) The lender sets the margin based on its costs and sought after
profit margin.
The TRID rule includes a provision stating that a consumers intent to proceeding
with a lending transaction:
(A) Must be stated in writing.
(B) Is made when the consumer submits a completed loan application.
(C) Must be submitted on a form provided by the creditor.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, (D) May be oral or written. - Correct answer-(D) May be oral or written.
What type of loan is a jumbo loan?
(A) Nonconvential
(B) Non-government
(C) Nonconforming
(D) Conforming - Correct answer-(C) Nonconforming
A subordinate lean that allows a borrow to pay down principal and continue to
make withdrawals is known as:
(A) A reverse mortgage
(B) An ARM
(C) A home equity line of credit
(D) A piggyback loan - Correct answer-(C) A home equity line of credit
A borrower pays $200,000 for a home and gets a fixed-rate loan from his lender at
5.75%. He puts $40,000 down. What is the LTV on this loan, and does the buyer
have to pay PMI?
(A) 80% and yes
(B) 90% and yes
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
#7 Questions and Answers Graded A+
Information that would be protected as nonpublic personal information under the
Gramm-Leach-Bliley Act includes which of the following?
(A) A customer's credit report.
(B) Information in government real estate records.
(C) Listed telephone numbers provided by consumers.
(D) Government records of recorded liens. - Correct answer-(A) A customer's
credit report.
Virtually, every residential transaction involves an estate that is held in
__________, the desired form of holding ownership to property because it has the
fewest restrictions.
(A) Foreclosure
(B) Fee simple
(C) Short sale
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,(D) Deed-in-lieu - Correct answer-(B) Fee simple
Under the Homeowners Protection Act, borrowers can request that lenders cancel
PMI when their loan balance is less than __________, or a lender may collect PMI
until __________ loan-to-value is reached.
(A) 65%, 50%
(B) 78%, 62%
(C) 80%, 78%
(D) 80%, 65% - Correct answer-(C) 80%, 78%
Which of the following is not true regarding qualified mortgages?
(A) They generally may not have a DTI ratio of more than 43%.
(B) They must have a fixed interest rate.
(C) The loan term may not exceed 30 years.
(D) The loan may not include a feature that permits negative amortization. -
Correct answer-(B) They must have a fixed interest rate.
Which of the following would not be required for an adjustable rate home equity
plan?
(A) What You Should Know about Home Equity Lines of Credit
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,(B) Disclosure of APR fees, and transaction requirements.
(C) Disclosure of frequency of APR changes and a description of how the APR
will be determined.
(D) Loan Estimate and Closing Disclosure - Correct answer-(D) Loan Estimate and
Closing Disclosure
How is the margin determined?
(A) The broker determines margin based on the commission structure on the loan.
(B) The lender sets the margin by choosing an index to tie it to.
(C) The borrower chooses which margin he or she prefers.
(D) The lender sets the margin based on its costs and sought after profit margin. -
Correct answer-(D) The lender sets the margin based on its costs and sought after
profit margin.
The TRID rule includes a provision stating that a consumers intent to proceeding
with a lending transaction:
(A) Must be stated in writing.
(B) Is made when the consumer submits a completed loan application.
(C) Must be submitted on a form provided by the creditor.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, (D) May be oral or written. - Correct answer-(D) May be oral or written.
What type of loan is a jumbo loan?
(A) Nonconvential
(B) Non-government
(C) Nonconforming
(D) Conforming - Correct answer-(C) Nonconforming
A subordinate lean that allows a borrow to pay down principal and continue to
make withdrawals is known as:
(A) A reverse mortgage
(B) An ARM
(C) A home equity line of credit
(D) A piggyback loan - Correct answer-(C) A home equity line of credit
A borrower pays $200,000 for a home and gets a fixed-rate loan from his lender at
5.75%. He puts $40,000 down. What is the LTV on this loan, and does the buyer
have to pay PMI?
(A) 80% and yes
(B) 90% and yes
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
