2025 MORTGAGE EDUCATORS ACTUAL EXAM STUDY
GUIDE QUESTIONS WITH ANSWERS GRADED A+
2025/2026
A home purchase - In which of the followinf transactions must the CFPB's "your home
loan tool kit" booklet be provides?
Joan Johnson is a salesperson who is paid 100% commission. What type of
documentation would you ask her to provide as proof of her income for loan
qualification? - Tax returns for the past two years.
Mr. Cyril Cagney is paid $1,800 semi monthly. What is his monthly qualifying income? -
&3600 include equation
Bankruptcy information will remain on a consumers credit report for - Ten years
A couple has qualified for a $245,600 loan. They are told that the broker fee will cost
two points. What is the dollar amount of the broker fee? - $4,912 include equation
The VA guarantee covers up to what amount of the veterans entitlement? - Four times
the amount of the veterans entitlement
A borrower has applied for a refinance on her property valued at $235,000. She
currently has a HELLC with a $47,000 limit and currently owes $25,850. The borrower
has applied for a first mortgage of $164,500. Which of the following LTV, CLTV, and
HLTV are accurate based on this information ? - 70%/81%/90%
FEMA's National Flood Insurance Program - Which if the following is avaliable to a
borrower when the subject property is located in a flood zone and flood insurance is
required?
PMI is used to serve what purpose? - To cover the risk of lending to a consumer without
sufficient down payment
Why would a mortgage lender analyze a borrower's credit capacity? - To determine if
the borrower is finanically capable of repaying the loan
On which approach do appraisers place the most weight in reaching a value conclusion
for conforming loans? - Sales comparison approach
Table funding - The process of allowing a broker to originate and close a loan in his or
her own name before transferring the loan to the lender providing the funds
Advertising an attractive interest rate that a mortgage professional is not at liberty to
offer is a major ethical offense and violation of - Regulation z
, Ginnie Mar GNMA - The government national mortgage association
A hazard insurance company hosts a dinner for the employees of a mortgage broker.
The designated broker encourages the employees to send clients to the insurance
company. Who has violated RESPA - Both the hazardous insurance company and the
mortgage broker
In which of the following cases would it be permissible for a mortgage professional to
withhold compensation to an appraiser? - The appraiser bas provides valuations that
used inappropriate comparables, included errors and were generally inaccurate
According to fair lending laws, age may be considered as a favor in denying a loan
application if - The applicant is too young to enter in a contract
Cindy is a loan originator who specializes in refinance. A local appraiser calls her and
promises to deliver any appraisal that she needs for her refinances, telling Cindy, "All
you have to do is let me know the valuations that you need!" What are Cindys
obligations under the appraisal rules? - She must report the actions of the appraiser to
the state appraiser and licensing authorities and submit a request for a new appraisal.
Which of the following mortgage broker policies would violate fair lending laws? -
Refusinf to oroginate loans in ZIP codes known to be economically depressed
A title insurance company provides a computer to a mortgage broker. The computer is
used to transmit electronic documents from the mortgage brokers office to the title
insurance company. Who is in violation of RESPA? - both the title insurance company
and the mortgage broker
A mortgage broker is unable to assist a client and refers him to another mortgage
broker for originating services. The second broker pays the referring broker a fee for
providing the lead. Which of the following is correct. - Payment lf the fee is illegal.
Air loan - A fictitious borrower obtains a mortgage and secures it with fictitious property
Statement that would be permissible when communicating with an appraiser ? - "Can
you explain why this property is valued so low, compared to the current market? "
For a fee a real estate licensee offers a mortgage company the names and telephone
numbers of all the people who attended an open house, but the mortgage company
does not accept the offer. Who is violation of RESPA? - The real estate licensee
It is unethical and illegal to use yield spread premiums for any reason other than - To
help a borrower pay for serrlement cost
GUIDE QUESTIONS WITH ANSWERS GRADED A+
2025/2026
A home purchase - In which of the followinf transactions must the CFPB's "your home
loan tool kit" booklet be provides?
Joan Johnson is a salesperson who is paid 100% commission. What type of
documentation would you ask her to provide as proof of her income for loan
qualification? - Tax returns for the past two years.
Mr. Cyril Cagney is paid $1,800 semi monthly. What is his monthly qualifying income? -
&3600 include equation
Bankruptcy information will remain on a consumers credit report for - Ten years
A couple has qualified for a $245,600 loan. They are told that the broker fee will cost
two points. What is the dollar amount of the broker fee? - $4,912 include equation
The VA guarantee covers up to what amount of the veterans entitlement? - Four times
the amount of the veterans entitlement
A borrower has applied for a refinance on her property valued at $235,000. She
currently has a HELLC with a $47,000 limit and currently owes $25,850. The borrower
has applied for a first mortgage of $164,500. Which of the following LTV, CLTV, and
HLTV are accurate based on this information ? - 70%/81%/90%
FEMA's National Flood Insurance Program - Which if the following is avaliable to a
borrower when the subject property is located in a flood zone and flood insurance is
required?
PMI is used to serve what purpose? - To cover the risk of lending to a consumer without
sufficient down payment
Why would a mortgage lender analyze a borrower's credit capacity? - To determine if
the borrower is finanically capable of repaying the loan
On which approach do appraisers place the most weight in reaching a value conclusion
for conforming loans? - Sales comparison approach
Table funding - The process of allowing a broker to originate and close a loan in his or
her own name before transferring the loan to the lender providing the funds
Advertising an attractive interest rate that a mortgage professional is not at liberty to
offer is a major ethical offense and violation of - Regulation z
, Ginnie Mar GNMA - The government national mortgage association
A hazard insurance company hosts a dinner for the employees of a mortgage broker.
The designated broker encourages the employees to send clients to the insurance
company. Who has violated RESPA - Both the hazardous insurance company and the
mortgage broker
In which of the following cases would it be permissible for a mortgage professional to
withhold compensation to an appraiser? - The appraiser bas provides valuations that
used inappropriate comparables, included errors and were generally inaccurate
According to fair lending laws, age may be considered as a favor in denying a loan
application if - The applicant is too young to enter in a contract
Cindy is a loan originator who specializes in refinance. A local appraiser calls her and
promises to deliver any appraisal that she needs for her refinances, telling Cindy, "All
you have to do is let me know the valuations that you need!" What are Cindys
obligations under the appraisal rules? - She must report the actions of the appraiser to
the state appraiser and licensing authorities and submit a request for a new appraisal.
Which of the following mortgage broker policies would violate fair lending laws? -
Refusinf to oroginate loans in ZIP codes known to be economically depressed
A title insurance company provides a computer to a mortgage broker. The computer is
used to transmit electronic documents from the mortgage brokers office to the title
insurance company. Who is in violation of RESPA? - both the title insurance company
and the mortgage broker
A mortgage broker is unable to assist a client and refers him to another mortgage
broker for originating services. The second broker pays the referring broker a fee for
providing the lead. Which of the following is correct. - Payment lf the fee is illegal.
Air loan - A fictitious borrower obtains a mortgage and secures it with fictitious property
Statement that would be permissible when communicating with an appraiser ? - "Can
you explain why this property is valued so low, compared to the current market? "
For a fee a real estate licensee offers a mortgage company the names and telephone
numbers of all the people who attended an open house, but the mortgage company
does not accept the offer. Who is violation of RESPA? - The real estate licensee
It is unethical and illegal to use yield spread premiums for any reason other than - To
help a borrower pay for serrlement cost
