Loan Originator Exam Questions Fully Solved Latest Update 2025
Federal National Mortgage Association (FNMA) Fannie mae - Answers Operates exclusively in the
secondary market and provides support to mortgage lending institutions in the primary market.
Mortgage Broker - Answers Specializes as the intermediary between the borrower and the lender
Federal Home Loan Mortgage Corporation (FHLMC) Freddie Mac - Answers Federally chartered
corporation established in 1970 for the purpose of purchasing mortgages in the secondary market
secondary market - Answers A market for the purchase and sale of existing mortgages designed to
provide greater liquidity for selling mortgages
Federal housing finance agency (FHFA) - Answers Federal agency established to restore Fannie Mae and
Freddie Mac to a sound and solvent financial condition
Warehouse line - Answers The line of credit used by a mortgage lender to close and fund a loan before
selling it in the secondary market
Mortgage Banker - Answers Originates and services the mortgage loan as it is paid off.
Government National Mortgage Association (GNMA) ginnie mae - Answers Formed in 1968 as a wholly
owned government corporation within the United States Department of housing and Urban
Development (HUD) mortgage backed securities
RESPA Section 8 - Answers Any person or persons who violate the provisions shall be fined not more
than $10,000 or imprisoned for not more than one year, or both.
RESPA Section 10 - Answers Sets limits on the amount that a lender may require a borrower to put into
an escrow account for purposes of paying taxes, hazard insurance and other charges related to the
property.
CFPB (Consumer Financial Protection Bureau) - Answers Administers and enforces the Real Estate
Settlement Procedures Act.
Reverse Mortgages - Answers The good faith estimate disclosure form is used primarily for
__________________transactions.
Affiliated Business Arrangement - Answers If a lender has either an affiliate relationship or a direct
ownership interest of more than one percent in a provider of a settlement services and they directly
refer business to the provider it is per Regulation X a _____________.
Initial escrow settlement statement - Answers Regulation X requires that must be provided at
settlement,or within 45 calendar days of settlement
Kickbacks - Answers Payments in excess of the reasonable value of goods provided or services rendered
Federal National Mortgage Association (FNMA) Fannie mae - Answers Operates exclusively in the
secondary market and provides support to mortgage lending institutions in the primary market.
Mortgage Broker - Answers Specializes as the intermediary between the borrower and the lender
Federal Home Loan Mortgage Corporation (FHLMC) Freddie Mac - Answers Federally chartered
corporation established in 1970 for the purpose of purchasing mortgages in the secondary market
secondary market - Answers A market for the purchase and sale of existing mortgages designed to
provide greater liquidity for selling mortgages
Federal housing finance agency (FHFA) - Answers Federal agency established to restore Fannie Mae and
Freddie Mac to a sound and solvent financial condition
Warehouse line - Answers The line of credit used by a mortgage lender to close and fund a loan before
selling it in the secondary market
Mortgage Banker - Answers Originates and services the mortgage loan as it is paid off.
Government National Mortgage Association (GNMA) ginnie mae - Answers Formed in 1968 as a wholly
owned government corporation within the United States Department of housing and Urban
Development (HUD) mortgage backed securities
RESPA Section 8 - Answers Any person or persons who violate the provisions shall be fined not more
than $10,000 or imprisoned for not more than one year, or both.
RESPA Section 10 - Answers Sets limits on the amount that a lender may require a borrower to put into
an escrow account for purposes of paying taxes, hazard insurance and other charges related to the
property.
CFPB (Consumer Financial Protection Bureau) - Answers Administers and enforces the Real Estate
Settlement Procedures Act.
Reverse Mortgages - Answers The good faith estimate disclosure form is used primarily for
__________________transactions.
Affiliated Business Arrangement - Answers If a lender has either an affiliate relationship or a direct
ownership interest of more than one percent in a provider of a settlement services and they directly
refer business to the provider it is per Regulation X a _____________.
Initial escrow settlement statement - Answers Regulation X requires that must be provided at
settlement,or within 45 calendar days of settlement
Kickbacks - Answers Payments in excess of the reasonable value of goods provided or services rendered
