RMLO - SAFE Exam Questions &
Answers
Which federal legislation requires that the borrower have the right to receive a copy of his or
her credit report? Correct Ans-FACTA
What percentage is the fee threshold that triggers HOEPA disclosures for loans below $21,980.
Correct Ans-8%
Which of the following loans would not be considered a "higher-priced mortgage loan" as
defined by Reg Z
- Conforming conventional loan w/APR 1.5% above the APOR
- Conforming loan w/lender fees that exceed 5% the loan amount
- non-conforming jumbo loan w/APR 2.5% above APOR
- Subordinate lien loan w/APR 3.5% above APOR Correct Ans-Conforming loan w/lender fees
above 5%
A listing agent asks for the property's appraised value, and the loan officer tells them. Was that
illegal? Was it ethical? Correct Ans-Illegal & Unethical
Which of the following telemarketing cold calls must comply with the requirements of the
National DNC rules?
,- Call to someone who made an inquiry with the originator's company within the last 18
months?
- Surveys/political polls
- B2B calls
- Companies with which a consumer has an EBR Correct Ans-Calling someone who made an
inquiry with the originator's company within the last 18 months.
Which of the following is not considered a seller concession and therefore not subject to VA's
4% seller concession rule?
- Paying the buyer's loan-related closing costs
- Payment of the buyer's VA funding fee
- Prepayment of the buyer's property taxes and insurance
- Gifts such as a television or microwave Correct Ans-Paying the buyer's loan-related closing
costs
What disclosure contains the "Total Interest Percentage" (TIP) calculation? Correct Ans-The
Loan Estimate
As defined under TRID, which of the following is subject to the 10% cumulative tolerance?
- Amounts placed into escrow, impound, reserve or similar acct
- Charges paid to 3rd party service providers not required by creditor
- Charges for 3rd part services where the charge is not paid to the creditor
, - Fees paid to an unaffiliated 3rd party if the creditor did not permit the consumer to shop
Correct Ans-Charges for 3rd party services where the charge is not paid to the creditor
What is the official document from a mortgage holder releasing the debtor from the mortgage?
Correct Ans-Reconveyance Deed
If a refinance closed Thursday, when is the first day it could fund? Correct Ans-Tuesday
According to FNMA/FHLMC conforming guidelines at what level of ownership is an applicant
considered self employed? Correct Ans-25%
One of the most critical points of the CFPB's, Loan Originator Compensation Rule, is the
prohibition of the practice of: Correct Ans-Steering
3 weeks into the processing of the loan, the LO uncovers that a borrower has under reported
her current debt and should refuse service based on: Correct Ans-Ability to pay rule
The Dodd-Frank Act contains all of the following areas of mortgage reform except:
- Requires Lenders Ensure a Borrower's ability to repay
- Mandated states to establish minimum standards for the licensing and registration of state-
licensed LOs
- Expands Consumer Protections for High-Cost mortgages
Answers
Which federal legislation requires that the borrower have the right to receive a copy of his or
her credit report? Correct Ans-FACTA
What percentage is the fee threshold that triggers HOEPA disclosures for loans below $21,980.
Correct Ans-8%
Which of the following loans would not be considered a "higher-priced mortgage loan" as
defined by Reg Z
- Conforming conventional loan w/APR 1.5% above the APOR
- Conforming loan w/lender fees that exceed 5% the loan amount
- non-conforming jumbo loan w/APR 2.5% above APOR
- Subordinate lien loan w/APR 3.5% above APOR Correct Ans-Conforming loan w/lender fees
above 5%
A listing agent asks for the property's appraised value, and the loan officer tells them. Was that
illegal? Was it ethical? Correct Ans-Illegal & Unethical
Which of the following telemarketing cold calls must comply with the requirements of the
National DNC rules?
,- Call to someone who made an inquiry with the originator's company within the last 18
months?
- Surveys/political polls
- B2B calls
- Companies with which a consumer has an EBR Correct Ans-Calling someone who made an
inquiry with the originator's company within the last 18 months.
Which of the following is not considered a seller concession and therefore not subject to VA's
4% seller concession rule?
- Paying the buyer's loan-related closing costs
- Payment of the buyer's VA funding fee
- Prepayment of the buyer's property taxes and insurance
- Gifts such as a television or microwave Correct Ans-Paying the buyer's loan-related closing
costs
What disclosure contains the "Total Interest Percentage" (TIP) calculation? Correct Ans-The
Loan Estimate
As defined under TRID, which of the following is subject to the 10% cumulative tolerance?
- Amounts placed into escrow, impound, reserve or similar acct
- Charges paid to 3rd party service providers not required by creditor
- Charges for 3rd part services where the charge is not paid to the creditor
, - Fees paid to an unaffiliated 3rd party if the creditor did not permit the consumer to shop
Correct Ans-Charges for 3rd party services where the charge is not paid to the creditor
What is the official document from a mortgage holder releasing the debtor from the mortgage?
Correct Ans-Reconveyance Deed
If a refinance closed Thursday, when is the first day it could fund? Correct Ans-Tuesday
According to FNMA/FHLMC conforming guidelines at what level of ownership is an applicant
considered self employed? Correct Ans-25%
One of the most critical points of the CFPB's, Loan Originator Compensation Rule, is the
prohibition of the practice of: Correct Ans-Steering
3 weeks into the processing of the loan, the LO uncovers that a borrower has under reported
her current debt and should refuse service based on: Correct Ans-Ability to pay rule
The Dodd-Frank Act contains all of the following areas of mortgage reform except:
- Requires Lenders Ensure a Borrower's ability to repay
- Mandated states to establish minimum standards for the licensing and registration of state-
licensed LOs
- Expands Consumer Protections for High-Cost mortgages
