CRMA UPDATED ACTUAL EXAM QUESTIONS CORRECT ANSWERS GRADED A PLUS
Question:
If an owner occupied one unit of a quadraplex and rents the other three units, does the Fair Housing
Act provide protections?
Answer:
No, this transaction whether two, three or four units is exempt from the provisions of the Fair
Housing Act.
Question:
RESPA requires that a borrower is notified _____________ days before the effective date of the
transfer of servicing.
Answer:
Fifteen Days
Question:
SRP stands for ____________________________.
Answer:
Service Release Premium
Question:
Supervisory agencies, through the (FFIEC) Federal Financial Institutions Examination Council
compile _____________ data in the form of individual disclosure statements for each institution.
Answer:
Loan, the number of loans applied for and made
,Question:
Telling a buyer that they would not be comfortable in particular neighborhood for racial reasons is
called _________________ and is a violation of _____________________.
Answer:
Steering, the Fair Housing Act
Question:
Two discriminatory reasons for denying a loan include a borrower's permanent disability and a
borrower living in a economically depressed area. Which of the tow violate ECOA?
Answer:
The Equal Credit Opportunity Act prohibits redlining. That is, the refusal to lend in specific area for
discriminatory reasons. Other Federal Acts but ECOA deal with the discrimination based on
disability.
Question:
Balance in the Real Estate market occurs when there are slightly more ____________________
available than _______________.
Answer:
More properties that available buyers
Question:
Which Act includes Red Flag rules?
Answer:
FACTA. The Fair and Accurate Credit Transaction of 2003.
Question:
Any non-government loan is a ___________________ loan.
,Answer:
Conventional
Question:
According to investor guidelines, state law, and federal law it is illegal to improperly influence the
independent judgement of an appraiser. It is also considered a form of mortgage
________________.
Answer:
Fraud
Question:
How should you respond to a borrower who suggests they will be submitting false documents in
order to qualify for a loan?
Answer:
Refuse to take the loan application. (suspected fraud makes the refusal justifiable)
Question:
For a fee, a Real Estate Broker offers a Mortgage Company the contact information of the people
attending an Open House. Has anyone violated RESPA and if so, who?
Answer:
Only the Real Estate Broker by offering referrals in exchange for something of value is a RESPA
violation. However, had the Mortgage Company accepted that would also be in violation of RESPA.
Question:
The SAFE act is title V of _________________________.
Answer:
HERA, The Housing and Economic Recovery Act.
, Question:
Providing that payments are made on time, the HPA requires that PMI is automatically terminated at
__________% loan to value.
Answer:
78%
Question:
MIP is required on all _________________ loans.
Answer:
FHA insured
Question:
The mortgage clause that facilitates a change in lien position, generally from superior to inferior is
called a(n) ______________________ clause.
Answer:
Subordination
Question:
Which regulation prohibits discrimination in a credit transaction?
Answer:
Regulation B of ECOA
Question:
The interest rate charged by the Federal Reserve to its member banks is called the _____________
rate.
Answer:
Discount Rate
Question:
If an owner occupied one unit of a quadraplex and rents the other three units, does the Fair Housing
Act provide protections?
Answer:
No, this transaction whether two, three or four units is exempt from the provisions of the Fair
Housing Act.
Question:
RESPA requires that a borrower is notified _____________ days before the effective date of the
transfer of servicing.
Answer:
Fifteen Days
Question:
SRP stands for ____________________________.
Answer:
Service Release Premium
Question:
Supervisory agencies, through the (FFIEC) Federal Financial Institutions Examination Council
compile _____________ data in the form of individual disclosure statements for each institution.
Answer:
Loan, the number of loans applied for and made
,Question:
Telling a buyer that they would not be comfortable in particular neighborhood for racial reasons is
called _________________ and is a violation of _____________________.
Answer:
Steering, the Fair Housing Act
Question:
Two discriminatory reasons for denying a loan include a borrower's permanent disability and a
borrower living in a economically depressed area. Which of the tow violate ECOA?
Answer:
The Equal Credit Opportunity Act prohibits redlining. That is, the refusal to lend in specific area for
discriminatory reasons. Other Federal Acts but ECOA deal with the discrimination based on
disability.
Question:
Balance in the Real Estate market occurs when there are slightly more ____________________
available than _______________.
Answer:
More properties that available buyers
Question:
Which Act includes Red Flag rules?
Answer:
FACTA. The Fair and Accurate Credit Transaction of 2003.
Question:
Any non-government loan is a ___________________ loan.
,Answer:
Conventional
Question:
According to investor guidelines, state law, and federal law it is illegal to improperly influence the
independent judgement of an appraiser. It is also considered a form of mortgage
________________.
Answer:
Fraud
Question:
How should you respond to a borrower who suggests they will be submitting false documents in
order to qualify for a loan?
Answer:
Refuse to take the loan application. (suspected fraud makes the refusal justifiable)
Question:
For a fee, a Real Estate Broker offers a Mortgage Company the contact information of the people
attending an Open House. Has anyone violated RESPA and if so, who?
Answer:
Only the Real Estate Broker by offering referrals in exchange for something of value is a RESPA
violation. However, had the Mortgage Company accepted that would also be in violation of RESPA.
Question:
The SAFE act is title V of _________________________.
Answer:
HERA, The Housing and Economic Recovery Act.
, Question:
Providing that payments are made on time, the HPA requires that PMI is automatically terminated at
__________% loan to value.
Answer:
78%
Question:
MIP is required on all _________________ loans.
Answer:
FHA insured
Question:
The mortgage clause that facilitates a change in lien position, generally from superior to inferior is
called a(n) ______________________ clause.
Answer:
Subordination
Question:
Which regulation prohibits discrimination in a credit transaction?
Answer:
Regulation B of ECOA
Question:
The interest rate charged by the Federal Reserve to its member banks is called the _____________
rate.
Answer:
Discount Rate
