NATIONAL AND UST MORTGAGE PRACTICE EXAM 1: MULTIPLE CHOICE WRONG ANSWERS ONLY

NATIONAL AND UST MORTGAGE
PRACTICE EXAM 1: MULTIPLE
CHOICE WRONG ANSWERS ONLY
AssumeA2aA2borrowerA2completesA2anA2onlineA2loanA2application,A2includingA2allA2sixA2req
uiredA2elements,A2butA2neverA2hitsA2"submit."A2WhichA2ofA2theA2followingA2isA2trueA2regardi
ngA2theA2lender'sA2obligationA2toA2issueA2aA2LoanA2Estimate?
A.A2TheA2lenderA2mustA2issueA2aA2LoanA2EstimateA2withinA2threeA2daysA2ofA2theA2borrowe
r'sA2submissionA2ofA2theA2lastA2requiredA2pieceA2ofA2informationA2-A2ALMOSTA2TRUEA2-
A2BUTA2THEA2LOANA2APPLICATIONA2WASA2NEVERA2SUBMITTED
B.A2TheA2lenderA2isA2notA2requiredA2toA2issueA2aA2LoanA2EstimateA2-A2TRUE
C.A2TheA2lenderA2isA2requiredA2toA2issueA2aA2LoanA2EstimateA2onceA2itA2realizesA2allA2sixA2
piecesA2ofA2informationA2haveA2beenA2submittedA2-A2NOTA2TRUE
D.A2TheA2lenderA2isA2requiredA2toA2contactA2theA2borrowerA2-A2NOTA2TRUEA2-A2Ans--
IA2ANSWEREDA2AA2-
A2ASA2IA2WASA2THINKINGA2THATA2INA2GENERALA2THEA2LOANA2ESTIMATEA2SHOULD
A2BEA2PROVIDEDA2WITHINA23A2DAYSA2OFA2THEA2LASTA2REQUIREDA2PIECEA2OFA2IN
FORMATION.A2THEA2ANSWERA2DOESA2NOTA2INCLUDEA2THEA2WORDA2APPLICATIO
NA2ANDA2THEA2APPLICATIONA2WASA2NEVERA2SUBMITTED.A2AA2LENDERA2CANNOTA
2DISCLOSEA2ONA2ANA2APPLICATIONA2THEYA2NEVERA2RECEIVED.A2TheA2answerA2is:
A2B.A2theA2lenderA2isA2notA2requiredA2toA2issueA2aA2LoanA2Estimate.A2AA2lenderA2mustA2pro
videA2theA2LoanA2EstimateA2eitherA2inA2personA2orA2byA2placingA2itA2inA2theA2mailA2noA2mor
eA2thanA2threeA2businessA2daysA2afterA2receiptA2ofA2theA2consumer'sA2applicationA2ANDA2
noA2laterA2thanA2sevenA2businessA2daysA2priorA2toA2consummation.A2IfA2aA2loanA2applicati
onA2hasA2notA2beenA2submitted,A2aA2lenderA2isA2notA2requiredA2toA2issueA2aA2LoanA2Estim
ate.

WhichA2ofA2theA2followingA2wouldA2NOTA2beA2requiredA2ifA2aA2mortgageA2companyA2wishe
sA2toA2utilizeA2electronicA2signaturesA2onA2requiredA2disclosures?
A.A2BorrowersA2mustA2beA2givenA2theA2optionA2toA2receiveA2theA2disclosuresA2inA2paperA2f
orm.A2-A2TRUE
B.A2BorrowersA2mustA2beA2ableA2toA2withdrawA2theirA2consentA2toA2receiveA2theA2disclosur
esA2electronically.A2-A2TRUE
C.A2TheA2companyA2mustA2recordA2theA2IPA2addressA2fromA2whichA2theA2documentsA2wer
eA2accessed.A2-A2FALSE
D.A2TheA2companyA2mustA2discloseA2hardwareA2andA2softwareA2requirementsA2toA2borro
wers.A2-A2TRUEA2-A2Ans--IA2ANSWEREDA2AA2-
A2ASA2IA2COULDN'TA2REMEMBERA2THEA2REQUIREMENTSA2OFA2THEA2E-
SIGNA2ACT.A2TheA2answerA2is:A2C.A2theA2companyA2mustA2recordA2theA2IPA2addressA2fro
mA2whichA2theA2documentsA2wereA2accessed.A2UnderA2theA2ElectronicA2SignaturesA2inA2
GlobalA2andA2NationalA2CommerceA2ActA2(theA2E-
SIGNA2Act),A2beforeA2obtainingA2aA2consumer'sA2consent,A2aA2financialA2institutionA2mustA
2provideA2aA2clearA2andA2conspicuousA2statementA2toA2consumers,A2informingA2themA2ofA2

, theirA2rightA2orA2optionA2toA2haveA2theA2recordA2providedA2orA2madeA2availableA2onA2paper
A2orA2inA2aA2non-
electronicA2form.A2TheA2statementA2mustA2alsoA2explainA2theA2consumer'sA2rightA2toA2with
drawA2consent,A2includingA2applicableA2conditions,A2consequences,A2andA2fees.A2Consu
mersA2mustA2alsoA2beA2providedA2withA2informationA2aboutA2theA2hardwareA2andA2softwar
eA2requiredA2toA2allowA2themA2toA2accessA2andA2retainA2theA2electronicA2records.

AccordingA2toA2theA2standardA2deedA2ofA2trust,A2howA2soonA2mustA2aA2borrowerA2onA2anA2
owner-occupiedA2loanA2occupyA2theA2property?
A.A2WithinA230A2daysA2ofA2closingA2
B.A2WithinA290A2daysA2ofA2closing
C.A2WithinA260A2daysA2ofA2closing
D.A2WithinA215A2daysA2ofA2closingA2-A2Ans--IA2ANSWEREDA2AA2-
A2BECAUSEA2IA2COULDN'TA2REMEMBERA2IFA2ITA2WASA230A2ORA260A2DAYSA2THATA2A
A2BORROWERA2NEEDEDA2TOA2MOVEA2INTOA2THEIRA2OWNER-
OCCUPIEDA2PROPERTY.A2TheA2answerA2is:A2C.A2withinA260A2daysA2ofA2closing.A2UnderA
2mostA2deedsA2ofA2trust,A2includingA2mostA2FHAA2andA2VAA2loans,A2aA2borrowerA2whoA2int
endsA2toA2occupyA2theA2propertyA2asA2his/
herA2residenceA2mustA2moveA2inA2withinA260A2daysA2afterA2closing.

WhichA2ofA2theA2followingA2wouldA2conveyA2aA2property?
A.A2DeedA2rider
B.A2WarrantyA2deed
C.A2Note
D.A2DeedA2ofA2trustA2-A2Ans--IA2ANSWEREDA2D.A2DUH!
A2IA2KNOWA2THEA2ANSWERA2TOA2THISA2NEEDA2TOA2SLOWA2DOWNA2ANDA2READA2T
HEA2QUESTIONA2THOROUGHLY.A2TheA2answerA2isA2warrantyA2deed.A2AA2warrantyA2de
edA2conveysA2fullA2ownershipA2ofA2land,A2andA2isA2commonlyA2usedA2inA2purchaseA2andA2
salesA2transactionsA2ofA2realA2estate.A2InA2additionA2toA2conveyingA2propertyA2ownership,A
2aA2warrantyA2deedA2containsA2theA2promiseA2ofA2clearA2title,A2meaningA2theA2propertyA2is
A2freeA2ofA2encumbrances.


AA2licensedA2mortgageA2loanA2originator:
A.A2PerformsA2clericalA2andA2supportA2dutiesA2forA2his/herA2sponsoringA2broker.A2-
A2SORTA2OFA2TRUEA2THISA2SOUNDSA2LIKEA2MOREA2OFA2LOANA2PROCESSORA2ORA
2OTHERA2DUTIESA2ASA2ASSINGEDA2BYA2HISA2SPONSORINGA2BROKERA2ANDA2NOT
A2JUSTA2AA2MORTGAGEA2LOANA2ORIGINATOR
B.A2AdvisesA2loanA2applicantsA2onA2currentA2ratesA2andA2loanA2termsA2-A2TRUE
C.A2MayA2takeA2responsibilityA2forA2servicingA2aA2loanA2afterA2itA2hasA2beenA2consummate
d.-A2NOTA2TRUE
D.A2NegotiatesA2theA2saleA2andA2purchaseA2ofA2residentialA2realA2estate.A2-
A2NOTA2TRUEA2-A2Ans--
IA2ANSWEREDA2A.A2THINKINGA2THATA2AA2LICENSEDA2MORTGAGEA2LOANA2ORIGIN
ATORA2DOESA2PERFORMA2CLERICALA2ANDA2SUPPORTA2DUTIES.A2THISA2ANSWER
A2WASA2NOTA2ASA2THOROUGHA2ASA2THEA2CORRECTA2ANSWER.A2TheA2answerA2is:A
2B.A2advisesA2loanA2applicantsA2onA2currentA2ratesA2andA2loanA2terms.A2TheA2S.A.F.E.A2A