2025 MORTGAGE EDUCATORS PRACTICE TEST EXAM
QUESTIONS WITH ANSWERS GRADED A+ 2025/2026
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
Compensation practices is allowed under the Loan Originator Compensation Rule? -
Payjng all originators a 3% commissin for ever loan originated, regardless of the loan
amount ir the terms and conditions of the loan
The safeguards rule - Requires mortgage professionalss to implement and maintain
security protocols to ensure the confudentiality if consumer information?
During the loan application interview he asks how much income he needs to qualify for
the loan? What is the most ethical response ? - "Lets review your taxt returna a d bank
statementa to determine your income?"
Under TILA guidelines all of the following disclosures are provided for an adjustable rate
loan except - Statement that the interest rate will be offered for the duration of the loan
Travel trailers - A lender is gathering info on loans for the purposes kf HMDA reporting.
Loans made in which of the following property types may be left out of the lenders
reports
Which of the following payments is a violation of RESPA - A mortgage broker excepts a
fee for sending its customers to a title company
The Dodd-Frank Act includes provisions that are intended to help struggling
homeowners to obtain loan modification by - Requiring the CFPB to write servicing rules
to facilities loss mitigation efforts
Why did congress enact the Home Mortgage Disclosure Act ? - To help identify patterns
of discriminitory lending
, The disclosure requirements of RESPA would apply to which of the following loans - A
loan to purchase a deplex and rehabilitate it into a single family dwelling.
Which of the following is not included in calculating APR? - Escrow fees
For charges subject to a 10% tolerance, to the extent that the sum of the changes
added together exceeds the sum of charges disclosed on the loan estimate by more
than 10% - A consumed ja eligible for a refund lf the difference
This occurs when an individual misrepresents qualifying information in order to improve
his or her chances of securing a mortgage loan. - Fraud for housing
Five siblings have ownership rights to a property. If a refinance transaction affecting the
property is subject to rescission, how many of these individuals must submit a
rescission notice in order to void the loan? - Any one of the five
According to fair lending laws which of the following may loan applicants be asked to
disclose to HMDA data collection. Purposes? - Their race
HUD is still responsible for writing rules and implementing which of the following acts? -
The fair housing act
Which of the following lending terms is not prohibited for a high cost loan regulated
under HOEPA - An ajustable interest rate
Which of the following is true of the Home Toolkit booklet? - If there js multiple
borrowers it is only required to be given to one of them
A mortgage broker pays for title services on behalf of the developer. In return the
developer agrees to refer prospective buyers to the mortgage broker? Who has violated
RESPA - Both
John and Jane brown are co owners of a property that is their principal resistance and
are entering into a refinance transaction that is subject to rescission. John is provided
with one Cody of the nothice right to cancel and Jane receives none. What is the
deadline? - 3 years after closing
As a result of provisions included in the Dodd frank act HOEPA was revised to existent
provisions to - Open ended transactions and purchase money mortgages
A small service may be exempt under the servicing rules if it is a nonprofit entity that
services - 5,000 or fewer mortgages
Non public information - Account balance history
QUESTIONS WITH ANSWERS GRADED A+ 2025/2026
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
Compensation practices is allowed under the Loan Originator Compensation Rule? -
Payjng all originators a 3% commissin for ever loan originated, regardless of the loan
amount ir the terms and conditions of the loan
The safeguards rule - Requires mortgage professionalss to implement and maintain
security protocols to ensure the confudentiality if consumer information?
During the loan application interview he asks how much income he needs to qualify for
the loan? What is the most ethical response ? - "Lets review your taxt returna a d bank
statementa to determine your income?"
Under TILA guidelines all of the following disclosures are provided for an adjustable rate
loan except - Statement that the interest rate will be offered for the duration of the loan
Travel trailers - A lender is gathering info on loans for the purposes kf HMDA reporting.
Loans made in which of the following property types may be left out of the lenders
reports
Which of the following payments is a violation of RESPA - A mortgage broker excepts a
fee for sending its customers to a title company
The Dodd-Frank Act includes provisions that are intended to help struggling
homeowners to obtain loan modification by - Requiring the CFPB to write servicing rules
to facilities loss mitigation efforts
Why did congress enact the Home Mortgage Disclosure Act ? - To help identify patterns
of discriminitory lending
, The disclosure requirements of RESPA would apply to which of the following loans - A
loan to purchase a deplex and rehabilitate it into a single family dwelling.
Which of the following is not included in calculating APR? - Escrow fees
For charges subject to a 10% tolerance, to the extent that the sum of the changes
added together exceeds the sum of charges disclosed on the loan estimate by more
than 10% - A consumed ja eligible for a refund lf the difference
This occurs when an individual misrepresents qualifying information in order to improve
his or her chances of securing a mortgage loan. - Fraud for housing
Five siblings have ownership rights to a property. If a refinance transaction affecting the
property is subject to rescission, how many of these individuals must submit a
rescission notice in order to void the loan? - Any one of the five
According to fair lending laws which of the following may loan applicants be asked to
disclose to HMDA data collection. Purposes? - Their race
HUD is still responsible for writing rules and implementing which of the following acts? -
The fair housing act
Which of the following lending terms is not prohibited for a high cost loan regulated
under HOEPA - An ajustable interest rate
Which of the following is true of the Home Toolkit booklet? - If there js multiple
borrowers it is only required to be given to one of them
A mortgage broker pays for title services on behalf of the developer. In return the
developer agrees to refer prospective buyers to the mortgage broker? Who has violated
RESPA - Both
John and Jane brown are co owners of a property that is their principal resistance and
are entering into a refinance transaction that is subject to rescission. John is provided
with one Cody of the nothice right to cancel and Jane receives none. What is the
deadline? - 3 years after closing
As a result of provisions included in the Dodd frank act HOEPA was revised to existent
provisions to - Open ended transactions and purchase money mortgages
A small service may be exempt under the servicing rules if it is a nonprofit entity that
services - 5,000 or fewer mortgages
Non public information - Account balance history
