SAFE Mortgage Loan Originator Test (ANSWERED)
Prequalification - Correct Answer an estimate of the loan amt. for which the buyer can qualify based on
his income/credit under the lenders standards
USDA ratio - Correct Answer 29/41
FHA ratio - Correct Answer 31/43
Asset based loan - Correct Answer -loans based on borrowers equity
-bad when lenders fail to consider ability to repay
High Cost Loan - Correct Answer Reg Z - Sec. 1026.32
-APR will exceed by more than 6.5% for first lien loans or by more than 8.5% for subordinate
-APOR - average prime offer rate
1. 5%
2. 6.5%
3. 8.5%
RESPA - Section 8 - Correct Answer Nothing of value for referrals - No kickbacks
Respa - Esign Act - Correct Answer can use electronic signature with permission of borrower
Gramm Leach Bliley - Correct Answer -borrower notification must state who company shares info with
-consumers can opt-out of info sharing (send notice to consumer)
-Protects from phishing
-Safeguard Rules
Safeguard Rules - Correct Answer -company and staff need to protect the consumers identity
, -lock up files
-part of GLB act
second mortgage - Correct Answer -All money upfront
-no escrow as long as first mortgage is paying it
Subordination Clause - Correct Answer A contract clause that puts a mortgage in the first lien position
over an earlier recorded mortgage
Denial Of License - Correct Answer -any non-financial felony in the past 7 years
-financial felony ever
-financial misdemeanor (state decides)
-License has been revoked in another state
-default on a federal student loan
Income - Correct Answer -Need to years history and 3 more years expected income
-do not include sporadic overtime and bonuses
-likelihood of continued income
TILA - Respa Integrated Disclosure - Correct Answer -TRID
-LE must be disclosed within 3 business days
-cannot require documentation from borrower without "intent to proceed"
-Appraisal is considered 0% tolerance
Do Not Call - Correct Answer -$16,000 fine
-Area code report cant be over 30 days old
-allowed to call closed, declined and cancelled loans 18 months after the fact
-can call 90 days after inquiry or pre-qual
-someone says do not call - cant call, email, fax anything
Prequalification - Correct Answer an estimate of the loan amt. for which the buyer can qualify based on
his income/credit under the lenders standards
USDA ratio - Correct Answer 29/41
FHA ratio - Correct Answer 31/43
Asset based loan - Correct Answer -loans based on borrowers equity
-bad when lenders fail to consider ability to repay
High Cost Loan - Correct Answer Reg Z - Sec. 1026.32
-APR will exceed by more than 6.5% for first lien loans or by more than 8.5% for subordinate
-APOR - average prime offer rate
1. 5%
2. 6.5%
3. 8.5%
RESPA - Section 8 - Correct Answer Nothing of value for referrals - No kickbacks
Respa - Esign Act - Correct Answer can use electronic signature with permission of borrower
Gramm Leach Bliley - Correct Answer -borrower notification must state who company shares info with
-consumers can opt-out of info sharing (send notice to consumer)
-Protects from phishing
-Safeguard Rules
Safeguard Rules - Correct Answer -company and staff need to protect the consumers identity
, -lock up files
-part of GLB act
second mortgage - Correct Answer -All money upfront
-no escrow as long as first mortgage is paying it
Subordination Clause - Correct Answer A contract clause that puts a mortgage in the first lien position
over an earlier recorded mortgage
Denial Of License - Correct Answer -any non-financial felony in the past 7 years
-financial felony ever
-financial misdemeanor (state decides)
-License has been revoked in another state
-default on a federal student loan
Income - Correct Answer -Need to years history and 3 more years expected income
-do not include sporadic overtime and bonuses
-likelihood of continued income
TILA - Respa Integrated Disclosure - Correct Answer -TRID
-LE must be disclosed within 3 business days
-cannot require documentation from borrower without "intent to proceed"
-Appraisal is considered 0% tolerance
Do Not Call - Correct Answer -$16,000 fine
-Area code report cant be over 30 days old
-allowed to call closed, declined and cancelled loans 18 months after the fact
-can call 90 days after inquiry or pre-qual
-someone says do not call - cant call, email, fax anything
