LOAN ORIGINATOR PRACTICE EXAM
6 QUESTIONS WITH COMPLETE
SOLUTIONS!!
1 of 39
Definition
"within 30 days of application, if the application is missing required
information
ECOA requires the borrower to know the status of his/her loan
within 30 days of application. This includes letting the borrower
know, within 30 days, that his/her application needs to be
completed in order for any further consideration of the file.
Give this one a try later!
, "
"Virginia has entered an agreement for a home loan after a contractor came to
her door offering home improvement services and a card for a mortgage broker
who could help her get a loan. Virginia contacted the mortgage broker and
secured the loan. Which of the following arrangements for paying the contractor
is not in compliance with HOEPA?
Virginia can pay the contractor directly
Virginia can place the funds with a third-party escrow agent who can disburse
them pursuant to a written agreement
Virginia and the contractor can enter an agreement for her to pay him when the
work is complete
The mortgage broker can pay the contractor directly"
"
"A rent credit is used in a purchase
transaction: "
"
"Civil monetary penalties resulting from the failure to report data for HMDA
are: "
The Equal Credit Opportunity Act requires a Notice of Incomplete
Application be provided to a borrower:
Don't know?
2 of 39
Term
"
Mary is purchasing her first home with an HPML. When her loan
,officer is reviewing the transaction with her, he tells her that she must
establish an escrow account:
Give this one a try later!
"a purchase money mortgage.
A purchase money mortgage would be subject to the ATR Rule.
"before consummation of the loan.
Mary must establish an escrow account prior to the consummation of the
loan.
"the consumer is making a significant cash down payment.
A consumer who makes a significant cash down payment is not necessarily
engaging in fraudulent behavior.
" Section 4.
Section 4 of the 1003, "Loan and Property Information," provides information
about the property, including its street address and how it will be used.
Don't know?
3 of 39
Term
"
"Which of the following loan types considers residual income in
qualification?
, VA
HPML
FHA
USDA"
Give this one a try later!
"there is a DBA or an AKA.
The presence of a DBA (doing business as) or AKA (also known as) would be a
credit report red flag.
"the note.
Neither the mortgage nor the deed of trust actually contain the borrower's
contractual promise to repay the loan. The note, or promissory note, is the
borrower's promise to repay the loan.
"VA.
The VA loan considers residual income as part of qualification.
"a variable interest rate.
High-cost mortgages are permitted to have a variable interest rate, however,
negative amortization, advanced payments, and prepayment penalties are not
allowed.
Don't know?
4 of 39
6 QUESTIONS WITH COMPLETE
SOLUTIONS!!
1 of 39
Definition
"within 30 days of application, if the application is missing required
information
ECOA requires the borrower to know the status of his/her loan
within 30 days of application. This includes letting the borrower
know, within 30 days, that his/her application needs to be
completed in order for any further consideration of the file.
Give this one a try later!
, "
"Virginia has entered an agreement for a home loan after a contractor came to
her door offering home improvement services and a card for a mortgage broker
who could help her get a loan. Virginia contacted the mortgage broker and
secured the loan. Which of the following arrangements for paying the contractor
is not in compliance with HOEPA?
Virginia can pay the contractor directly
Virginia can place the funds with a third-party escrow agent who can disburse
them pursuant to a written agreement
Virginia and the contractor can enter an agreement for her to pay him when the
work is complete
The mortgage broker can pay the contractor directly"
"
"A rent credit is used in a purchase
transaction: "
"
"Civil monetary penalties resulting from the failure to report data for HMDA
are: "
The Equal Credit Opportunity Act requires a Notice of Incomplete
Application be provided to a borrower:
Don't know?
2 of 39
Term
"
Mary is purchasing her first home with an HPML. When her loan
,officer is reviewing the transaction with her, he tells her that she must
establish an escrow account:
Give this one a try later!
"a purchase money mortgage.
A purchase money mortgage would be subject to the ATR Rule.
"before consummation of the loan.
Mary must establish an escrow account prior to the consummation of the
loan.
"the consumer is making a significant cash down payment.
A consumer who makes a significant cash down payment is not necessarily
engaging in fraudulent behavior.
" Section 4.
Section 4 of the 1003, "Loan and Property Information," provides information
about the property, including its street address and how it will be used.
Don't know?
3 of 39
Term
"
"Which of the following loan types considers residual income in
qualification?
, VA
HPML
FHA
USDA"
Give this one a try later!
"there is a DBA or an AKA.
The presence of a DBA (doing business as) or AKA (also known as) would be a
credit report red flag.
"the note.
Neither the mortgage nor the deed of trust actually contain the borrower's
contractual promise to repay the loan. The note, or promissory note, is the
borrower's promise to repay the loan.
"VA.
The VA loan considers residual income as part of qualification.
"a variable interest rate.
High-cost mortgages are permitted to have a variable interest rate, however,
negative amortization, advanced payments, and prepayment penalties are not
allowed.
Don't know?
4 of 39
