20-HR SAFE Comprehensive Mortgage Loan
Originator Fundamentals HW UPDATED
ACTUAL Exam Questions and CORRECT
Answers
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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT ANSWER - Sales price
The APR disclosure for a regular transaction the allowable tolerance of:
.250%
1%
.125%
.500% - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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% - CORRECT 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 - CORRECT 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
Originator Fundamentals HW UPDATED
ACTUAL Exam Questions and CORRECT
Answers
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 - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT ANSWER - Sales price
The APR disclosure for a regular transaction the allowable tolerance of:
.250%
1%
.125%
.500% - CORRECT 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 - CORRECT 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 - CORRECT 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 - CORRECT 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% - CORRECT 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 - CORRECT 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
