CRMA QUIZ UPDATED ACTUAL EXAM QUESTIONS CORRECT ANSWERS GRADED A PLUS
Question:
RESPA-Real Estate Settlement Procedures Act.
Answer:
The Federal Statute that deals with the settlement of residential mortgage loans.
Question:
RESPA's section 9 Prohibits.
Answer:
Home sellers from requiring home buyers to purchase title insurance from a particular company
providing title services.
Question:
The Dodd-Frank Act modifies ECOA to require a creditor to furnish a copy of an appraisal
developed in connection with a first mortgage_____________________ and absolutely not later
than ________ business days prior to closing.
Answer:
upon completion and 3 business days
Question:
TIL (Truth In Lending Disclosure) & GFE (Good Faith Estimate).
Answer:
Per the Dodd Frank Act, a single disclosure form combines these 2 statements.
,Question:
Per the Dodd-Frank Acvt, to be a "qualified mortgage" total points and fees may not exceed
________% of the total loan amount.
Answer:
3% (three percent)
Question:
Per a provision of the Dodd-Frank Act mortgage lenders are to determine that a borrower has a
reasonable ability to repay a loan. Does this provision apply to all loans or just owner occupied
loans?
Answer:
All loans, whether owner occupied or not.
Question:
A loan subject to HOEPA allows prepayment penalties for the first ______ years of the loan.
Answer:
2 (two) years
Question:
Per the Dodd-Frank Act an abusive act would include which of the following: 1. One that materially
interferes with the consumers ability to understand the product or service. 2. One that take
unreasonable advantage of a consumers' lack of understanding. 3. One that takes unreasonable
advantage of the consumer's reasonable reliance on the MLO.
Answer:
All three would be considered abusive acts.
Question:
Per the Dodd-Frank Act if an MLO receives compensation directly from a consumer, up to how
much additional compensation may be received from a lender in the same transaction?
,Answer:
$0.00, dual compensation is not allowed. Compensation must be borrower paid or lender paid.
Question:
What kinds of reasons are necessary for a lender to take adverse action with regard to a borrower?
Answer:
Specific reasons.
Question:
Adverse action means ______________________.
Answer:
A denial or revocation of credit. Also, a change in the terms of an existing credit arrangement or a
refusal to grant credit in substantially the amount or terms requested.
Question:
Per Regulation B, Lenders should retain certain records for _____________ months.
Answer:
25 Months
Question:
Because of the impact of the Dodd-Frank Act on a second mortgage, an APR that exceeds the
________ by more than _____% is the trigger that defines a high cost loan.
Answer:
APOR ( Average Prime Offer Rate), 8.5%
Question:
Regulation C is known as ________________________.
, Answer:
HMDA, The Home Mortgage Disclosure Act.
Question:
What is the purpose of HMDA?
Answer:
The HMDA determines whether financial institutions are serving the housing needs of their
communities. It also identifies patterns of discriminatory lending.
Question:
Under what circumstances can a lender with an Affiliated Business Arrangement require a borrower
to use a specific third party service provider?
Answer:
If there are no kickback or referral fees and the service provider is an attorney, credit reporting
agency or appraiser the lender can require that the borrower uses the provider
Question:
If a transfer of servicing occurs, the _______________ must provide a servicing transfer statement
not less than ________ days before the transfer occurs.
Answer:
Servicer, 15 (fifteen) days.
Question:
An individual who fails the MLO written exam 3 times must wait _________ months to retake the
exam.
Answer:
6 (Six) Months
Question:
RESPA-Real Estate Settlement Procedures Act.
Answer:
The Federal Statute that deals with the settlement of residential mortgage loans.
Question:
RESPA's section 9 Prohibits.
Answer:
Home sellers from requiring home buyers to purchase title insurance from a particular company
providing title services.
Question:
The Dodd-Frank Act modifies ECOA to require a creditor to furnish a copy of an appraisal
developed in connection with a first mortgage_____________________ and absolutely not later
than ________ business days prior to closing.
Answer:
upon completion and 3 business days
Question:
TIL (Truth In Lending Disclosure) & GFE (Good Faith Estimate).
Answer:
Per the Dodd Frank Act, a single disclosure form combines these 2 statements.
,Question:
Per the Dodd-Frank Acvt, to be a "qualified mortgage" total points and fees may not exceed
________% of the total loan amount.
Answer:
3% (three percent)
Question:
Per a provision of the Dodd-Frank Act mortgage lenders are to determine that a borrower has a
reasonable ability to repay a loan. Does this provision apply to all loans or just owner occupied
loans?
Answer:
All loans, whether owner occupied or not.
Question:
A loan subject to HOEPA allows prepayment penalties for the first ______ years of the loan.
Answer:
2 (two) years
Question:
Per the Dodd-Frank Act an abusive act would include which of the following: 1. One that materially
interferes with the consumers ability to understand the product or service. 2. One that take
unreasonable advantage of a consumers' lack of understanding. 3. One that takes unreasonable
advantage of the consumer's reasonable reliance on the MLO.
Answer:
All three would be considered abusive acts.
Question:
Per the Dodd-Frank Act if an MLO receives compensation directly from a consumer, up to how
much additional compensation may be received from a lender in the same transaction?
,Answer:
$0.00, dual compensation is not allowed. Compensation must be borrower paid or lender paid.
Question:
What kinds of reasons are necessary for a lender to take adverse action with regard to a borrower?
Answer:
Specific reasons.
Question:
Adverse action means ______________________.
Answer:
A denial or revocation of credit. Also, a change in the terms of an existing credit arrangement or a
refusal to grant credit in substantially the amount or terms requested.
Question:
Per Regulation B, Lenders should retain certain records for _____________ months.
Answer:
25 Months
Question:
Because of the impact of the Dodd-Frank Act on a second mortgage, an APR that exceeds the
________ by more than _____% is the trigger that defines a high cost loan.
Answer:
APOR ( Average Prime Offer Rate), 8.5%
Question:
Regulation C is known as ________________________.
, Answer:
HMDA, The Home Mortgage Disclosure Act.
Question:
What is the purpose of HMDA?
Answer:
The HMDA determines whether financial institutions are serving the housing needs of their
communities. It also identifies patterns of discriminatory lending.
Question:
Under what circumstances can a lender with an Affiliated Business Arrangement require a borrower
to use a specific third party service provider?
Answer:
If there are no kickback or referral fees and the service provider is an attorney, credit reporting
agency or appraiser the lender can require that the borrower uses the provider
Question:
If a transfer of servicing occurs, the _______________ must provide a servicing transfer statement
not less than ________ days before the transfer occurs.
Answer:
Servicer, 15 (fifteen) days.
Question:
An individual who fails the MLO written exam 3 times must wait _________ months to retake the
exam.
Answer:
6 (Six) Months
