, Question 1
A mortgage originator is evaluating a borrower whose monthly gross income is
$6,500. The borrower's proposed housing payment (PITI) is $1,950, and total
monthly debt obligations including the proposed mortgage are $2,925. Under
the Qualified Mortgage general ability-to-repay standards, which of the
following is the most accurate assessment of the borrower's compliance with
the 43% debt-to-income threshold?
A. Compliant, because the housing expense ratio of 30% is below the
31% threshold.
B. Non-compliant, because the total DTI of 45% exceeds the 43%
threshold.
C. Compliant, because the total DTI is 43% exactly.
D. Non-compliant, because the housing expense ratio of 35% exceeds the
28% threshold.
Correct Answer: B - Non-compliant, because the total DTI of
45% exceeds the 43% threshold.
RATIONALE
Total monthly debt of $2,925 divided by gross monthly income of
$6,500 equals 45%, which exceeds the 43% DTI limit for a general
Qualified Mortgage. The housing expense ratio ($1,950/$6,500 =
30%) is not the governing metric under the QM general definition.
Options A and C miscalculate or misapply the threshold, and D
invents a 28% housing ratio standard that does not apply to QM.
Question 2
A lender discloses a Loan Estimate on Monday, and the borrower's spouse,
who is not on the loan but will hold title, receives a separate copy on
Wednesday. Under TILA-RESPA Integrated Disclosure rules, what is the
earliest permissible date for consummation if the borrower mails back the
intent to proceed on the same Monday?
Page 2
, A. The following Monday, because the seven-business-day waiting
period begins at delivery to the spouse.
B. The following Wednesday, because the three-business-day waiting
period runs from the spouse's receipt.
C. The following Tuesday, because the seven-business-day waiting
period begins from the borrower's receipt of the Loan Estimate.
D. Immediately, because the borrower's intent to proceed waives the
waiting period.
Correct Answer: C - The following Tuesday, because the
seven-business-day waiting period begins from the borrower's
receipt of the Loan Estimate.
RATIONALE
The seven-business-day waiting period begins when the Loan
Estimate is delivered or placed in the mail to the borrower, not the
non-borrowing spouse. Counting seven business days from Monday
yields the following Tuesday as the earliest consummation date.
Options A and B incorrectly anchor the period to the spouse's receipt,
and D is false because intent to proceed does not waive the seven-day
waiting period.
Question 3
An appraiser values a property at $420,000 using the sales comparison
approach. The borrower's purchase contract price is $450,000, and the lender's
maximum LTV is 80%. What is the maximum loan amount the lender may
extend based on the lesser of appraised value or purchase price?
A. $336,000
B. $360,000
C. $420,000
D. $450,000
Correct Answer: A - $336,000
Page 3
A mortgage originator is evaluating a borrower whose monthly gross income is
$6,500. The borrower's proposed housing payment (PITI) is $1,950, and total
monthly debt obligations including the proposed mortgage are $2,925. Under
the Qualified Mortgage general ability-to-repay standards, which of the
following is the most accurate assessment of the borrower's compliance with
the 43% debt-to-income threshold?
A. Compliant, because the housing expense ratio of 30% is below the
31% threshold.
B. Non-compliant, because the total DTI of 45% exceeds the 43%
threshold.
C. Compliant, because the total DTI is 43% exactly.
D. Non-compliant, because the housing expense ratio of 35% exceeds the
28% threshold.
Correct Answer: B - Non-compliant, because the total DTI of
45% exceeds the 43% threshold.
RATIONALE
Total monthly debt of $2,925 divided by gross monthly income of
$6,500 equals 45%, which exceeds the 43% DTI limit for a general
Qualified Mortgage. The housing expense ratio ($1,950/$6,500 =
30%) is not the governing metric under the QM general definition.
Options A and C miscalculate or misapply the threshold, and D
invents a 28% housing ratio standard that does not apply to QM.
Question 2
A lender discloses a Loan Estimate on Monday, and the borrower's spouse,
who is not on the loan but will hold title, receives a separate copy on
Wednesday. Under TILA-RESPA Integrated Disclosure rules, what is the
earliest permissible date for consummation if the borrower mails back the
intent to proceed on the same Monday?
Page 2
, A. The following Monday, because the seven-business-day waiting
period begins at delivery to the spouse.
B. The following Wednesday, because the three-business-day waiting
period runs from the spouse's receipt.
C. The following Tuesday, because the seven-business-day waiting
period begins from the borrower's receipt of the Loan Estimate.
D. Immediately, because the borrower's intent to proceed waives the
waiting period.
Correct Answer: C - The following Tuesday, because the
seven-business-day waiting period begins from the borrower's
receipt of the Loan Estimate.
RATIONALE
The seven-business-day waiting period begins when the Loan
Estimate is delivered or placed in the mail to the borrower, not the
non-borrowing spouse. Counting seven business days from Monday
yields the following Tuesday as the earliest consummation date.
Options A and B incorrectly anchor the period to the spouse's receipt,
and D is false because intent to proceed does not waive the seven-day
waiting period.
Question 3
An appraiser values a property at $420,000 using the sales comparison
approach. The borrower's purchase contract price is $450,000, and the lender's
maximum LTV is 80%. What is the maximum loan amount the lender may
extend based on the lesser of appraised value or purchase price?
A. $336,000
B. $360,000
C. $420,000
D. $450,000
Correct Answer: A - $336,000
Page 3
