Mortgage Loan Originator Exam ACTUAL
Exam Questions and CORRECT Answers
RESPA - CORRECT ANSWER - Regulation X - To educate consumers about
understanding settlement services they are paying for
TILA - CORRECT ANSWER - Regulation Z - Truth in Lending Act -
Credit, APR, and Advertising
Requires lenders to disclose complete cost of credit
ECOA - CORRECT ANSWER - Regulation B - Equal Credit Opportunity Act - Credit
Application
Federal law that ensures that all consumers are given and equal chance to obtain credit (credit
application)
HMDA - CORRECT ANSWER - Regulation C - Home Mortgage Disclosure Act -
Allows lenders to see where possible discrimination takes place
Requires lenders to do monthly reports regarding the ethnicity, race, and sex of all applicants
How long does the lender have to provide the loan estimate? - CORRECT ANSWER -3
Days from the application being submitted
3 Day Right of Recision - CORRECT ANSWER - HELOCS/Refis the borrowers have 3
days to cancel the transaction.
Starts the day after they sign the documents
HOEPA - CORRECT ANSWER - Home Ownership Protection Act -
High-Cost Loans - Section 32 -
APR exceeds the APOR by more than 6.5% on first-lien loans or 8.5% on second-lien loans
, High Priced Loans - Section 35 -
1.5% on a first mortgage lien
2.5% on a first-lien jumbo loan
3.5% for a subordinate mortgage lien
FCRA - CORRECT ANSWER - Regulation V - Fair Credit Reporting Act - Credit Report
5 Rights (Denial letter, credit report, credit score, dispute, limit)
FACT Act - CORRECT ANSWER - Fair and Accurate Credit Transactions - Helps
Consumers fight Identity Theft
How long must a Loan Estimate be kept? - CORRECT ANSWER - 3 Years
How long must a Closing Disclosure be kept? - CORRECT ANSWER - 5 Years
How long must TILA Disclosures be kept? - CORRECT ANSWER - 2 years for general
TILA disclosure
3 years for the Loan Estimate
5 years for the Closing disclosure
What are the TILA Disclosures - CORRECT ANSWER - Loan Estimate and Closing
Disclosure
CHARM Booklet - Consumer Handbook on Adjustable Rate Mortgages
When your home is on the line disclosure (HELOC/REFI)
What type of loans are RESPA? - CORRECT ANSWER - Residential loans with 1-4 Units
(Owner Occupied)
Penalties for violation TILA - CORRECT ANSWER - $5,000 per day for single violation
Exam Questions and CORRECT Answers
RESPA - CORRECT ANSWER - Regulation X - To educate consumers about
understanding settlement services they are paying for
TILA - CORRECT ANSWER - Regulation Z - Truth in Lending Act -
Credit, APR, and Advertising
Requires lenders to disclose complete cost of credit
ECOA - CORRECT ANSWER - Regulation B - Equal Credit Opportunity Act - Credit
Application
Federal law that ensures that all consumers are given and equal chance to obtain credit (credit
application)
HMDA - CORRECT ANSWER - Regulation C - Home Mortgage Disclosure Act -
Allows lenders to see where possible discrimination takes place
Requires lenders to do monthly reports regarding the ethnicity, race, and sex of all applicants
How long does the lender have to provide the loan estimate? - CORRECT ANSWER -3
Days from the application being submitted
3 Day Right of Recision - CORRECT ANSWER - HELOCS/Refis the borrowers have 3
days to cancel the transaction.
Starts the day after they sign the documents
HOEPA - CORRECT ANSWER - Home Ownership Protection Act -
High-Cost Loans - Section 32 -
APR exceeds the APOR by more than 6.5% on first-lien loans or 8.5% on second-lien loans
, High Priced Loans - Section 35 -
1.5% on a first mortgage lien
2.5% on a first-lien jumbo loan
3.5% for a subordinate mortgage lien
FCRA - CORRECT ANSWER - Regulation V - Fair Credit Reporting Act - Credit Report
5 Rights (Denial letter, credit report, credit score, dispute, limit)
FACT Act - CORRECT ANSWER - Fair and Accurate Credit Transactions - Helps
Consumers fight Identity Theft
How long must a Loan Estimate be kept? - CORRECT ANSWER - 3 Years
How long must a Closing Disclosure be kept? - CORRECT ANSWER - 5 Years
How long must TILA Disclosures be kept? - CORRECT ANSWER - 2 years for general
TILA disclosure
3 years for the Loan Estimate
5 years for the Closing disclosure
What are the TILA Disclosures - CORRECT ANSWER - Loan Estimate and Closing
Disclosure
CHARM Booklet - Consumer Handbook on Adjustable Rate Mortgages
When your home is on the line disclosure (HELOC/REFI)
What type of loans are RESPA? - CORRECT ANSWER - Residential loans with 1-4 Units
(Owner Occupied)
Penalties for violation TILA - CORRECT ANSWER - $5,000 per day for single violation
