20-HR SAFE COMPREHENSIVE
MORTGAGE LOAN ORIGINATOR
FUNDAMENTALS HW
Mortgage loan originators who make cold calls must comply with the requirements of
the National Do-Not-Call rules. The loan originator needs to update any download of the
registry at least every:
31 days
18 Months
7 days
Year - ANSWER-31 Days
The appraisal approach that is used as the best indicator of value for existing properties
is:
Similar property approach
Fair market value approach
Market data approach
Neighborhood value approach - ANSWER-Market data approach
The Truth in Lending Act is contained in Title I of the:
Real Estate Settlement Procedures Act
Fair Credit Reporting Act
Consumer Credit Protection Act
Equal Credit Opportunity Act - ANSWER-Consumer Credit Protection Act
FHA (Federal Housing Administration) sellers are permitted to provide financing
concession up to 6 percent of the:
Sales price
Loan amount
FHA non-allowable closing cost
Origination charges - ANSWER-Sales price
The APR disclosure for a regular transaction the allowable tolerance of:
.250%
1%
.125%
.500% - ANSWER-.125% = 1/8
, The SAFE Act requires all MLOs seeking state-licensure to pass the NMLS-developed
Mortgage Loan Originator Test with a score of:
80 or better
75 or better
70 or better
65 or better - ANSWER-75 or better
The Consumer Financial Protection Act of 2010 establishes Consumer Financial
Protection Bureau (CFPB), as an independent entity housed within the:
Federal Housing Finance Agency
Federal Trade Commission
Federal National Mortgage Association
Federal Reserve System - ANSWER-Federal Reserve System
TRID requires that the Closing Disclosure must be completed and made available for
inspection:
a. During the business day immediately preceding the day of settlement
b. The day of consummation
c. Within 3 days of application
d. 3 business days prior to consummation - ANSWER-3 Business days prior to
consummation
VA loans allow for a maximum LTV of what percent?
a. 90%
b. 95%
c. 97%
d. 100% - ANSWER-100%
VA's debt-to-income ratio is a ratio of total monthly debt payments (housing expense,
installment debt, etc.) to gross income. It is a guide and, as an underwriting factor, it is
secondary to
the:
a. Net income ratio calculation
b. Residual income calculation
c. Cost of living expense calculation
d. Cash flow ratio calculation - ANSWER-Residual Income Calculation
The Equal Credit Opportunity Act, and the CFPB's implementing Regulation B, prohibits
discrimination in any aspect of a credit transaction on the basis of all of the following
except:
a. Race
MORTGAGE LOAN ORIGINATOR
FUNDAMENTALS HW
Mortgage loan originators who make cold calls must comply with the requirements of
the National Do-Not-Call rules. The loan originator needs to update any download of the
registry at least every:
31 days
18 Months
7 days
Year - ANSWER-31 Days
The appraisal approach that is used as the best indicator of value for existing properties
is:
Similar property approach
Fair market value approach
Market data approach
Neighborhood value approach - ANSWER-Market data approach
The Truth in Lending Act is contained in Title I of the:
Real Estate Settlement Procedures Act
Fair Credit Reporting Act
Consumer Credit Protection Act
Equal Credit Opportunity Act - ANSWER-Consumer Credit Protection Act
FHA (Federal Housing Administration) sellers are permitted to provide financing
concession up to 6 percent of the:
Sales price
Loan amount
FHA non-allowable closing cost
Origination charges - ANSWER-Sales price
The APR disclosure for a regular transaction the allowable tolerance of:
.250%
1%
.125%
.500% - ANSWER-.125% = 1/8
, The SAFE Act requires all MLOs seeking state-licensure to pass the NMLS-developed
Mortgage Loan Originator Test with a score of:
80 or better
75 or better
70 or better
65 or better - ANSWER-75 or better
The Consumer Financial Protection Act of 2010 establishes Consumer Financial
Protection Bureau (CFPB), as an independent entity housed within the:
Federal Housing Finance Agency
Federal Trade Commission
Federal National Mortgage Association
Federal Reserve System - ANSWER-Federal Reserve System
TRID requires that the Closing Disclosure must be completed and made available for
inspection:
a. During the business day immediately preceding the day of settlement
b. The day of consummation
c. Within 3 days of application
d. 3 business days prior to consummation - ANSWER-3 Business days prior to
consummation
VA loans allow for a maximum LTV of what percent?
a. 90%
b. 95%
c. 97%
d. 100% - ANSWER-100%
VA's debt-to-income ratio is a ratio of total monthly debt payments (housing expense,
installment debt, etc.) to gross income. It is a guide and, as an underwriting factor, it is
secondary to
the:
a. Net income ratio calculation
b. Residual income calculation
c. Cost of living expense calculation
d. Cash flow ratio calculation - ANSWER-Residual Income Calculation
The Equal Credit Opportunity Act, and the CFPB's implementing Regulation B, prohibits
discrimination in any aspect of a credit transaction on the basis of all of the following
except:
a. Race
