Prepxl Practice Test 8 Questions and Answers 2024 Correctly done

ACME Home Loans is a private lender with a strict policy of limiting originations to conventional qualified mortgages with minimum loan amounts of $300,000. To ensure compliance with this policy, loan originators are instructed to refuse to accept applications from consumers who want loan amounts of less than $300,000, or who have debt-to-income ratios of 44% or more. This policy is: - Not a violation of any federal fair lending law - Potentially unlawful under the disparate impact theory - An example of disparate treatment of consumers - Legal if there is no discriminatory intent - Potentially unlawful under the disparate impact theory. Even when there is no intent to discriminate, lending policies are potentially unlawful if they could adversely impact creditworthy consumers who belong to a protected class. For example, the lending standards described in this question could adversely impact younger applicants, thereby violating ECOA's prohibition against age-based discrimination. Which unethical behavior involves conspiratorial involvement of individuals using the mortgage market to benefit financially from criminal behavior? - Fraud for property - Money laundering - Identity theft - Fraud for profit - Fraud for profit. Fraud for profit may involve a number of persons, such as sellers, mortgage loan originators (including mortgage brokers and lenders and their individual mortgage loan originators), real estate brokers, appraisers, builders and developers, who conspire to manipulate the mortgage market by inflating property values (and therefore loan amounts) for personal financial gain. What type of lien takes priority?- A tax lien - The first mortgage - The second mortgage - A mechanic's lien - A tax lien. A tax lien takes priority over all other liens, regardless of chronological order. Which of the following is not involved in the bundling of mortgages for sale in the secondary market? - FHA - FNMA - Private-label investors - FHLMC - FHA. The secondary market includes GSEs, such as Fannie Mae and Freddie Mac (FNMA and FHLMC), as well as private financial institutions, also known as private-label investors. All of the following are responsibilities of the underwriter, except: - Confirming that a potential borrower has sufficient cash assets to close - Providing a borrower with a notice of adverse action - Ensuring the property is eligible and meets lender guidelines for collateral - Examining the overall pattern of credit behavior and isolated occurrences of derogatory credit - Providing a borrower with a notice of adverse action. The underwriter is responsible for confirming that a potential borrower has sufficient cash assets to close, ensuring that the property is eligible and meets lender guidelines for collateral, and examining the overall pattern of credit behavior and isolated occurrences of derogatory credit.The Derringers have rescinded their loan transaction, informing their lender of their decision by mail. They are entitled to a full refund within: - 10 days - 20 days - 30 days - 60 days - 20 days