Non-Clinical Questions – Leik | 100% Correct Answers | Verified | Latest 2024 Version

Which federal law requires that the Loan Estimate be provided to the borrower within three business days of the time of loan application is taken? - TILA What type of scam entails homeowners who are encouraged to refinance their property over and over until little or no equity remains? - Loan flipping or churning After a loan closing, funds are disbursed. When are the funds disbursed for an owner-occupied, residential refinance? - After 3 business-day rescission period What is the adjustable number used to compute the interest rate on an ARM called? - Index A borrower is buying a house for $180,000. He provides a down payment of $40,000. If he pays three discount points, what is the total cost of the points? - $4200 Which day is counted as part of the CD three business day delivery period? - Monday-Saturday A Latina applies to a mortgage company for a home loan. She is refused based on the reputation of the neighborhood for a high number of foreclosures. This is an example of what illegal practice? - Redlining Which Act amended the Truth in Lending Act, establishing disclosure requirements and prohibiting equity stripping and other abusive practices in connection with "high cost" mortgages? - Home Ownership and Equity Protection Act (HOEPA) The type of mortgage that can provide the borrower with a monthly check instead of the borrower paying a monthly payments is known as - Reverse mortgage According to the Fair Credit Reporting Act, if adverse action is taken against a credit applicant because of information on a credit report, the lender who used that report is required to - provide to the consumer the name, address, and telephone number of the consumer reporting agency that furnished the report and the credit score used At closing, the buyers realizes that the lender changed the terms of the loan, but since he was facing foreclosure, he felt he had no choice but to go ahead with the refinance or lose the house. This could be an example of - Predatory lending The SAFE Act - Establishes minimum standards for licensing and registering mortgage loan originators In a note, what gives the lender the right to charge the borrower a fee for retiring the loan early? - Prepayment penalty Regulation B implements the Equal Credit Opportunity Act. True or False? - True Which item is NOT included in the calculation that determines the annual percentage rate? a. the broker's origination fee b. the lender's discount points c. the mortgage insurance premium d. the title insurance premium - The title insurance premium (D) Under RESPA, who would be subject to fines and penalties if a kickback is paid? - All parties paying or receiving a kickback A conforming loan is a loan that - Follows the secondary market criteria set by Fannie Mae/Freddie Mac MLO Jon from ABC Mortgage is meeting with a potential borrower. What may Jon NEVER ask about during the loan application process? - Religion The clause in the mortgage that makes the note due in full upon sale or transfer of a property is call a(n) - Alienation clause AKA "due at sale clause" The APR is required to be disclosed in a Truth in Lending statement is the - Relationship between the total cost of borrowing and the actual amount borrowed Which of the following is NOT included as a protected class by the Equal Credit Opportunity Act? a. martial status b. receipt of public assistance c. religion d.Social security - D The rate that is used to amortize the mortgage loan and determining the monthly loan payments is known as the - note rate The loan officer knows that the applicants source of income is public assistance, so he tells the applicant not to waster his time filling out an application and paying any fees. What federal law has the loan officer violated? - ECOA A subordination clause in a morgage - Puts the mortgage in first lien position over an earlier recorded mortgage Where do the funds for FHA loans come from? - approved lenders An applicant for a mortgage has recurring monthly debt of $425 and a gross monthly income of $3,850. For a conforming loan, what is the maximum house payment- including PITI- for which she qualifies? - $961.00