Prepxl Practice Test 7 Questions & Answers Rated 100% Correct!!

Which of the following is responsible for determining whether to issue a license approval? - The NMLS - The Governor - The Legislature - The Commissioner - The Commissioner. The Commissioner or state regulator for financial institutions determines licensing eligibility. A subordinate lien that allows a borrower to pay down principal and continue to make withdrawals is known as: - A reverse mortgage - An ARM - A home equity line of credit - A piggyback loan - A home equity line of credit. Open-ended credit that allows a borrower to make repeated withdrawals and also make monthly payments based on the outstanding balance is known as a home equity line of credit. Loan processors and underwriters who are exempt from licensure may not: - Communicate with consumers to obtain information necessary for loan processing - Collect information required to document a loan application - Distribute disclosures required in accordance with federal law - Take a loan application in the absence of a loan originator - take a loan application in the absence of a loan originator.Exempt processors and underwriters may not take on any of the responsibilities of the loan originator that would ordinarily require a license, such as taking an application. The Homeowners Protection Act is applicable to all but which of the following? - Lenders - Loan servicers - Appraisers - Mortgage insurance companies - Appraisers. The HPA applies to residential mortgages used for primary residences and is applicable to lenders, loan servicers, and insurers. "SIVA" stands for: - Stated income validation amortization - Simple interest validation account - Stated income verified assets - Stated interest verification account - Stated income verified assets. "SIVA" stands for stated income verified assets. In regard to title insurance, a standard owner's policy covers: - Undetected encumbrances - Mechanic's liens - Survey issues - Foreclosure - Undetected encumbrances.The owner's policy protects the owner of the property against ownership disputes or undetected liens or encumbrances on the property. The standard owner's policy does not cover survey issues, mechanics liens, or protection against foreclosure. Which appraisal approach is most commonly used to appraise new home construction? - The income approach - The cost approach - The sales comparison approach - The market approach - The cost approach.