20 Hour SAFE Comprehensive Questions with Verified Answers

20 Hour SAFE Comprehensive Questions with Verified Answers The appraisal approach that is used as the best indicator of value for existing properties is __________ Market Data Approach Mortgage Loan originators who make cold calls must comply woth the requirements of the National Do-Not-Call rules. The loan originator needs to update any download of the registry at least every ___________ 31 days The Truth in Lending Act is contained in Title I of the ________ Consumer Credit Protection Act FHA sellers are permitted to provide financing concessions up to 6 percent of the __________ Sales Price The APR disclosed for a regular transaction the allowable tolerance of ____________ .125% According to this principle the value of a commodity is influenced by the cost of acquiring a substitute or comparable item: Principle of substitution The Consumer Financial Protection Act of 2010 establishes the Consumer Financial Protection Bureau (CFPB), as an independent entity housed within the _________ Federal Reserve System The creditor is generally required to ensure that the consumer recieves the Closing Disclosers (CD) 3 days prior to consummation Transactions exempt from RESPA include ___________ Loans secured by parcels of 25 or more acres VA's debt-to-income ratio is a ratio of total monthly debt payments (housing expense, installment debt, etc.) to gross income. It is a guide and, as an underwriting factor, it is secondary to the ___________ Residual Income The Equal Credit Opportunity Act, and the CFPB's implementing Regulation B, prohibits discrimination in any aspect of a credit transaction on the basis of all of the following except ___________ Immigration status The SAFE Act requires mortgage loan originator to pass a qualified test to obtain a license. An individual may retake the test 2 consecutive taking, occuring at least _____ days after the proceeding test 30 Lenders that generate mortgage loans may receive some degree of legal protection against borrower lawsuits. The level of protection they receive will depend on the type of loan they make. What type of mortgage loan gives the lender the greatest level of protection against borrower lawsuits? Qualified Mortgage Loan A mortgage loan originator that receives an application for a federally related mortgage loan is required to disclose to the borrower at the time of application, or within three business days after its submission: Whether the servicing of the loan may be assigned , sold or transferred The Home Mortgage Disclosure Act (HMDA) requires lenders to ask applicants and borrowers for information regarding their ethnicity, race, and sex even when applications are made entirely by telephone, mail, or the Internet. If an applicant submitting his or her application in person fails to provide the information, the lender must note the information from applicants: Appearance and surname Protecting the privacy of consumer information held by financial institutions is the heart of the financial privacy provisions of the ____________ Gramm-Leach-Bliley Act Financial Modernization Act of 1999 Excessive lending activity for the purpose of generating fees and commissions is called _________ Churning