NATIONAL AND UST MORTGAGE PRACTICE EXAM 1 QUESTIONS AND CORRECT ANSWERS

NATIONAL AND UST MORTGAGE
PRACTICE EXAM 1 QUESTIONS AND
CORRECT ANSWERS
AA2borrowerA2receivedA2$1,000A2perA2monthA2inA2rentalA2income.A2HowA2muchA2ofA2theA2i
ncomeA2mayA2beA2usedA2toA2qualifyA2theA2borrowerA2forA2aA2loan?

A.A2$1,000
B.A2$800
C.A2$750
D.A2$1,250A2-A2Ans--C.A2$750

Generally,A275%A2ofA2rentalA2incomeA2mayA2beA2usedA2toA2qualifyA2aA2borrowerA2forA2aA2l
oan.A2ThisA2formulaA2isA2basedA2onA2anA2industryA2standardA2thatA2taxes,A2insurance,A2an
dA2maintenanceA2costsA2willA2equalA2aboutA225%A2ofA2theA2incomeA2thatA2aA2propertyA2ge
nerates.A2InA2thisA2case,A275%A2xA2$1,000A2=A2$750.

WhatA2isA2FreddieA2Mac'sA2automatedA2underwritingA2systemA2called?

A.A2DesktopA2Originator
B.A2UnderwriterA2Assistant
C.A2LoanA2ProductA2Advisor
D.A2AUSA2-A2Ans--C.A2LoanA2ProductA2Advisor

FreddieA2Mac'sA2automatedA2underwritingA2systemA2isA2calledA2LoanA2ProductA2AdvisorA2
(formerlyA2knownA2asA2LoanA2Prospector),A2whileA2FannieA2Mae'sA2isA2calledA2DesktopA2
Underwriter.

WhichA2ofA2theA2followingA2containsA2onlyA2itemsA2whichA2shouldA2beA2usedA2inA2calculati
ngA2aA2borrower'sA2debt-to-incomeA2ratio?

A.A2MonthlyA2rentA2expenseA2onA2currentA2home,A2creditA2cardA2payment,A2carA2insuranc
e
B.A2CarA2payment,A2boatA2payment,A2childA2supportA2obligations
C.A2PropertyA2taxA2payment,A2utilityA2payment,A2cableA2bill
D.A2MortgageA2insuranceA2payment,A2averageA2groceryA2costs,A2electricA2billA2-A2Ans--
B.A2CarA2payment,A2boatA2payment,A2childA2supportA2obligations

AA2debt-to-
incomeA2ratioA2comparesA2anA2applicant'sA2totalA2monthlyA2debtA2toA2hisA2orA2herA2totalA2
monthlyA2income.A2TotalA2monthlyA2debtA2wouldA2includeA2simultaneousA2loans,A2debtA2o
bligations,A2alimony,A2andA2childA2support.A2TypicalA2livingA2expensesA2(e.g.,A2utilities,A2h

,ealthA2andA2disabilityA2insurance,A2food,A2phoneA2orA2cableA2bills,A2etc.)A2areA2notA2includ
edA2whenA2calculatingA2DTI.

WhichA2ofA2theA2followingA2wouldA2NOTA2beA2requiredA2ifA2aA2mortgageA2companyA2wishe
sA2toA2utilizeA2electronicA2signaturesA2onA2requiredA2disclosures?

A.A2BorrowersA2mustA2beA2givenA2theA2optionA2toA2receiveA2theA2disclosuresA2inA2paperA2f
orm
B.A2BorrowersA2mustA2beA2ableA2toA2withdrawA2theirA2consentA2toA2receiveA2theA2disclosur
esA2electronically
C.A2TheA2companyA2mustA2recordA2theA2IPA2addressA2fromA2whichA2theA2documentsA2wer
eA2accessed
D.A2TheA2companyA2mustA2discloseA2hardwareA2andA2softwareA2requirementsA2toA2borro
wersA2-A2Ans--
C.A2TheA2companyA2mustA2recordA2theA2IPA2addressA2fromA2whichA2theA2documentsA2wer
eA2accessed

UnderA2theA2ElectronicA2SignaturesA2inA2GlobalA2andA2NationalA2CommerceA2ActA2(theA2E
-
SIGNA2Act),A2beforeA2obtainingA2aA2consumer'sA2consent,A2aA2financialA2institutionA2mustA
2provideA2aA2clearA2andA2conspicuousA2statementA2toA2consumers,A2informingA2themA2ofA2
theirA2rightA2orA2optionA2toA2haveA2theA2recordA2providedA2orA2madeA2availableA2onA2paper
A2orA2inA2aA2non-
electronicA2form.A2TheA2statementA2mustA2alsoA2explainA2theA2consumer'sA2rightA2toA2with
drawA2consent,A2includingA2applicableA2conditions,A2consequences,A2andA2fees.A2Consu
mersA2mustA2alsoA2beA2providedA2withA2informationA2aboutA2theA2hardwareA2andA2softwar
eA2requiredA2toA2allowA2themA2toA2accessA2andA2retainA2theA2electronicA2records.

UnderA2theA2S.A.F.E.A2Act,A2aA2licensedA2loanA2originator'sA2responsibilitiesA2withA2regard
A2toA2recordkeepingA2includeA2allA2ofA2theA2following,A2except:


A.A2NotA2knowinglyA2withholding,A2removing,A2orA2destroyingA2anyA2booksA2orA2records
B.A2MakingA2allA2ofA2theA2licensee'sA2recordsA2availableA2toA2borrowersA2uponA2demand
C.A2PermittingA2interviewsA2ofA2principals,A2loanA2originators,A2andA2independentA2contra
ctorsA2byA2stateA2regulators
D.A2MakingA2recordsA2andA2booksA2availableA2toA2theA2stateA2regulatorA2-A2Ans--
B.A2MakingA2allA2ofA2theA2licensee'sA2recordsA2availableA2toA2borrowersA2uponA2demand

LicensedA2loanA2originatorsA2andA2thoseA2requiredA2toA2beA2licensedA2mustA2makeA2recor
dsA2andA2booksA2availableA2toA2theirA2stateA2regulatorA2andA2permitA2interviewsA2ofA2office
rs,A2principals,A2employees,A2independentA2contractors,A2agentsA2andA2customers.A2They
A2mayA2notA2knowinglyA2withhold,A2abstract,A2remove,A2mutilate,A2destroy,A2orA2secreteA2a
nyA2books,A2records,A2orA2otherA2informationA2duringA2anA2investigationA2orA2examination.
A2LoanA2originatorsA2areA2notA2requiredA2toA2makeA2allA2ofA2theirA2recordsA2availableA2toA2
borrowersA2uponA2demand.

, WhichA2ofA2theA2followingA2federalA2regulationsA2prohibitsA2discriminationA2basedA2onA2ra
ce,A2color,A2religion,A2sex,A2maritalA2status,A2orA2nationalA2originA2inA2aA2creditA2transactio
n?

A.A2RegulationA2C
B.A2RegulationA2B
C.A2RegulationA2Z
D.A2RegulationA2GA2-A2Ans--B.A2RegulationA2B

RegulationA2BA2implementsA2theA2provisionsA2ofA2theA2EqualA2CreditA2OpportunityA2ActA2(
ECOA),A2whichA2ensuresA2thatA2allA2persons,A2consumers,A2andA2businessesA2areA2given
A2anA2equalA2chanceA2toA2obtainA2creditA2byA2prohibitingA2discriminationA2basedA2onA2crite
riaA2includingA2race,A2color,A2religion,A2nationalA2origin,A2sex,A2maritalA2status,A2andA2ageA
2(providedA2theA2individualA2isA2ofA2ageA2toA2enterA2intoA2aA2contract).


AccordingA2toA2theA2standardA2deedA2ofA2trust,A2howA2soonA2mustA2aA2borrowerA2onA2anA2
owner-occupiedA2loanA2occupyA2theA2property?

A.A2WithinA230A2daysA2ofA2closing
B.A2WithinA290A2daysA2ofA2closing
C.A2WithinA260A2daysA2ofA2closing
D.A2WithinA215A2daysA2ofA2closingA2-A2Ans--C.A2WithinA260A2daysA2ofA2closing

UnderA2mostA2deedA2ofA2trust,A2includingA2mostA2FHAA2andA2VAA2loans,A2aA2borrowerA2w
hoA2intendsA2toA2occupyA2theA2propertyA2asA2his/
herA2residenceA2mustA2moveA2inA2withinA260A2daysA2afterA2closing.

WhichA2ofA2theA2followingA2wouldA2conveyA2aA2property?

A.A2DeedA2rider
B.A2WarrantyA2deed
C.A2Note
D.A2DeedA2ofA2trustA2-A2Ans--B.A2WarrantyA2deed

AA2warrantyA2deedA2conveysA2fullA2ownershipA2ofA2land,A2andA2isA2commonlyA2usedA2inA2p
urchaseA2andA2salesA2transactionsA2ofA2realA2estate.A2InA2additionA2toA2conveyingA2proper
tyA2ownership,A2aA2warrantyA2deedA2containsA2theA2promiseA2ofA2clearA2title,A2meaningA2th
eA2propertyA2isA2freeA2ofA2encumbrances.

WithA2respectA2toA2FHAA2loans,A2theA2FHA:

A.A2GuaranteesA2theA2loans,A2therebyA2protectingA2theA2lender
B.A2ActsA2asA2theA2lender
C.A2IssuesA2privateA2mortgageA2insurance
D.A2InsuresA2theA2loans,A2therebyA2protectingA2theA2lenderA2-A2Ans--
D.A2InsuresA2theA2loans,A2therebyA2protectingA2theA2lender