Mortgage loan originator UPDATED Exam
Questions and CORRECT Answers
"APR" - CORRECT ANSWER - Annual percentage rate
43% - CORRECT ANSWER - In order for a home loan to be a qualified mortgage, the
debt to income ratio may not exceed.
43%/41% - CORRECT ANSWER - The DRI standard for an FHA loan is ____, and the
standard for a VA loan is _______.
A _____ is a loan with an interest rate that can adjust monthly and also offers a borrower a
number of payment choices such as 30 or 15 year P&i, interest only if 1% minimum payment
which may result in negative amortization. - CORRECT ANSWER - Option-ARM
A borrower has applied for a refinance on her property valued at $235,000. She currently has a
HELLC with a $47,000 limit and currently owes $25,850. The borrower has applied for a first
mortgage of $164,500. Which of the following LTV, CLTV, and HLTV are accurate based on
this information ? - CORRECT ANSWER - 70%/81%/90%
A conventional loan that exceeds Fannie Mae and Freddie macs maximum loan limits -
CORRECT ANSWER - A non confirming loan
A couple has qualified for a $245,600 loan. They are told that the broker fee will cost two points.
What is the dollar amount of the broker fee? - CORRECT ANSWER - $4,912 include
equation
A fixed-rate qualified mortgage that is not a higher priced mortgage - CORRECT
ANSWER - A creditor may include a prepayment penalty provision
A float agreement - CORRECT ANSWER - An agreement a borrower makes with a lender
allowing their interest rate to rise or fall with the market
, A hazard insurance company hosts a dinner for the employees of a mortgage broker. The
designated broker encourages the employees to send clients to the insurance company. Who has
violated RESPA - CORRECT ANSWER - Both the hazardous insurance company and the
mortgage broker
A home purchase - CORRECT ANSWER - In which of the followinf transactions must the
CFPB's "your home loan tool kit" booklet be provides?
A loan with a balloon payment provision - CORRECT ANSWER - Which of the following
loan types is best described as a loan with a payment schedule made up of a series of small
periodic payments and a larger lump sum due upon maturity?
A loan with a balloon provision - CORRECT ANSWER - A loan with a payment schedule
made up of a series of small periodic payments Nd a larger lump sum due upon maturity
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. - CORRECT ANSWER - Payment lf the fee is illegal.
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 -
CORRECT ANSWER - Both
A property is valued at $495,000. This is a first and second mortgage with a 90% CLTV. The
first mortgage has 78% LTV. What is the approximate amount of the second mortgage? -
CORRECT ANSWER - $59,400 enter equation
A purchase money mortgage - CORRECT ANSWER - Examples of loans that are
typically secured by subordinate lien include all but
A small service may be exempt under the servicing rules if it is a nonprofit entity that services -
CORRECT ANSWER - 5,000 or fewer mortgages
Questions and CORRECT Answers
"APR" - CORRECT ANSWER - Annual percentage rate
43% - CORRECT ANSWER - In order for a home loan to be a qualified mortgage, the
debt to income ratio may not exceed.
43%/41% - CORRECT ANSWER - The DRI standard for an FHA loan is ____, and the
standard for a VA loan is _______.
A _____ is a loan with an interest rate that can adjust monthly and also offers a borrower a
number of payment choices such as 30 or 15 year P&i, interest only if 1% minimum payment
which may result in negative amortization. - CORRECT ANSWER - Option-ARM
A borrower has applied for a refinance on her property valued at $235,000. She currently has a
HELLC with a $47,000 limit and currently owes $25,850. The borrower has applied for a first
mortgage of $164,500. Which of the following LTV, CLTV, and HLTV are accurate based on
this information ? - CORRECT ANSWER - 70%/81%/90%
A conventional loan that exceeds Fannie Mae and Freddie macs maximum loan limits -
CORRECT ANSWER - A non confirming loan
A couple has qualified for a $245,600 loan. They are told that the broker fee will cost two points.
What is the dollar amount of the broker fee? - CORRECT ANSWER - $4,912 include
equation
A fixed-rate qualified mortgage that is not a higher priced mortgage - CORRECT
ANSWER - A creditor may include a prepayment penalty provision
A float agreement - CORRECT ANSWER - An agreement a borrower makes with a lender
allowing their interest rate to rise or fall with the market
, A hazard insurance company hosts a dinner for the employees of a mortgage broker. The
designated broker encourages the employees to send clients to the insurance company. Who has
violated RESPA - CORRECT ANSWER - Both the hazardous insurance company and the
mortgage broker
A home purchase - CORRECT ANSWER - In which of the followinf transactions must the
CFPB's "your home loan tool kit" booklet be provides?
A loan with a balloon payment provision - CORRECT ANSWER - Which of the following
loan types is best described as a loan with a payment schedule made up of a series of small
periodic payments and a larger lump sum due upon maturity?
A loan with a balloon provision - CORRECT ANSWER - A loan with a payment schedule
made up of a series of small periodic payments Nd a larger lump sum due upon maturity
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. - CORRECT ANSWER - Payment lf the fee is illegal.
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 -
CORRECT ANSWER - Both
A property is valued at $495,000. This is a first and second mortgage with a 90% CLTV. The
first mortgage has 78% LTV. What is the approximate amount of the second mortgage? -
CORRECT ANSWER - $59,400 enter equation
A purchase money mortgage - CORRECT ANSWER - Examples of loans that are
typically secured by subordinate lien include all but
A small service may be exempt under the servicing rules if it is a nonprofit entity that services -
CORRECT ANSWER - 5,000 or fewer mortgages
