Conventional Front-End Ratio - ANSWER 28%
Conventional Back-End Ratio - ANSWER 36%
FHA Front-End Ratio - ANSWER 31%
FHA Back-End Ratio - ANSWER 43%
VA Front-End Ratio - ANSWER Not Used
VA Back-End Ratio - ANSWER 41%
USDA Front-End Ratio - ANSWER 29%
USDA Back-End Ratio - ANSWER 41%
Wet settlement occurs when... - ANSWER Parties meet to execute documents and
funds are subsequently disbursed.
Dry settlement occurs when... - ANSWER Parties meet to execute documents, but
funds are not disbursed. Funds are not disbursed and property is not conveyed until
certain conditions are met.
A "registered mortgage loan originator" is an individual who is... - ANSWER
employed by an exempt depository institution and is therefore also exempt from
licensure as a loan originator
The intention of the Safeguards Rule is to... - ANSWER ensure the protection of
personal information through an effective security program.
The Dodd-Frank Act broadened the scope of HOEPA to cover almost all mortgage
types, except for... - ANSWER reverse mortgages.
The Derringers have rescinded their loan transaction, informing their lender of their
decision by mail. They are entitled to a full refund within: - ANSWER 20 Days
If a loan originator has not renewed his/her license by December 31st, he/she may: -
ANSWER not continue to conduct any loan originator activities until the license has
been renewed.
TILA allows for a rescission period on the refinance of a borrower's ________
dwelling... - ANSWER Principal
To determine the lifetime rate cap... - ANSWER Subtract the start rate from the
maximum rate
Does a seller pay % of the sales price or % of the loan amount? - ANSWER Sales
Price
,When a creditor takes steps legally to force the sale of a property in an effort to
collect on a loan in default, it is known as... - ANSWER foreclosure
Foreclosure is... - ANSWER the sale of property to satisfy unpaid debt after a
borrower's default on payments.
What term describes the transfer of ownership of real estate from one owner to
another? - ANSWER conveyance
Enhancing protection and reducing fraud by directing states to adopt minimum
uniform standards for the licensing and registration of residential mortgage loan
originators was the purpose of the federal act known as the... - ANSWER S.A.F.E.
Act
Does a consumer need to pay for a second appraisal if one is needed? - ANSWER
NO
The term "maximum guaranty amount" applies to _____ loans, and it refers to
_____. - ANSWER VA; the maximum amount that the VA will pay to a lender if the
borrower defaults on a loan.
Is it federal law or state law that best describes the fiduciary duty that a loan
originator owes to a consumer? - ANSWER State
The ______ is a trigger term in advertising for both open- and closed-end loans. -
ANSWER Finance Charge
100% financing, more lenient underwriting requirements, and no prepayment
penalties. - ANSWER Advantages of VA loans
Exempt from the ATR rule - ANSWER An open end HELOC
What entity requires to give the CHARM Booklet? - ANSWER TILA
Additional disclosures required in an ad containing a trigger term include... -
ANSWER the amount or percentage of the down payment, the terms of repayment,
and the annual percentage rate.
The Right to Rescind applies to... - ANSWER HELOC / Refinances
How much hazard insurance does FNMA require on a property? - ANSWER 100%
of the insurable replacement cost of project improvements
Examples of FHA loan products... - ANSWER Cash-out refinances, home equity
conversion mortgages, and streamline refinances.
When a creditor revises a Loan Estimate, it must deliver the revised disclosure to the
loan applicant: - ANSWER No later than four business days prior to consummation.
, The funding fee for a first-time user who is regular military, purchasing a home using
a VA loan, is... - ANSWER 2.30%
RESPA requires a refund if an escrow analysis uncovers an overage of greater
than... - ANSWER $50
Overages under $50 found in escrow analysis are... - ANSWER applied to the next
year's escrow payments
Overages over $50 found in escrow analysis are... - ANSWER Required to be
refunded within 30 days.
If a changed circumstance occurs fewer than four business days prior to
consummation... - ANSWER the revised charges may be provided to the consumer
on a revised Closing Disclosure.
The act of unilaterally marking up a fee and retaining the additional earnings is... -
ANSWER not illegal, as long as fee-splitting is not involved.
Lifetime rate caps are used in transactions for adjustable-rate mortgages to limit... -
ANSWER The amount by which a rate can change during a loan term.
Title insurance is required for all loans by the... - ANSWER Lender
Regulation B provides that, when inquiries related to marital status are permitted, the
terms that may be used are... - ANSWER "married," "unmarried," and "separated."
An established business relationship exists if a consumer secured a loan from a
lender within the past... - ANSWER 18 months or within past 3 months to inquire
about loan products.
A _____ lien takes priority over all other liens, regardless of chronological order. -
ANSWER Tax Lien
What legislation was enacted to strengthen money laundering laws to prevent the
financing of terrorist activities? - ANSWER PATRIOT Act
The ______ is a limit on the amount by which the payment can change on any
adjustment date from the current or previous payment amount on an ARM. -
ANSWER Payment Cap
In order to engage in the business of a loan originator, a loan processor who is
working for a mortgage broker must... - ANSWER secure a license as a loan
originator.
The LTV is always based off of the... - ANSWER lower of the purchase price or the
appraised value
A transaction in which the seller provides all or most of the financing is best known
as... - ANSWER Seller Carry-Back
Conventional Back-End Ratio - ANSWER 36%
FHA Front-End Ratio - ANSWER 31%
FHA Back-End Ratio - ANSWER 43%
VA Front-End Ratio - ANSWER Not Used
VA Back-End Ratio - ANSWER 41%
USDA Front-End Ratio - ANSWER 29%
USDA Back-End Ratio - ANSWER 41%
Wet settlement occurs when... - ANSWER Parties meet to execute documents and
funds are subsequently disbursed.
Dry settlement occurs when... - ANSWER Parties meet to execute documents, but
funds are not disbursed. Funds are not disbursed and property is not conveyed until
certain conditions are met.
A "registered mortgage loan originator" is an individual who is... - ANSWER
employed by an exempt depository institution and is therefore also exempt from
licensure as a loan originator
The intention of the Safeguards Rule is to... - ANSWER ensure the protection of
personal information through an effective security program.
The Dodd-Frank Act broadened the scope of HOEPA to cover almost all mortgage
types, except for... - ANSWER reverse mortgages.
The Derringers have rescinded their loan transaction, informing their lender of their
decision by mail. They are entitled to a full refund within: - ANSWER 20 Days
If a loan originator has not renewed his/her license by December 31st, he/she may: -
ANSWER not continue to conduct any loan originator activities until the license has
been renewed.
TILA allows for a rescission period on the refinance of a borrower's ________
dwelling... - ANSWER Principal
To determine the lifetime rate cap... - ANSWER Subtract the start rate from the
maximum rate
Does a seller pay % of the sales price or % of the loan amount? - ANSWER Sales
Price
,When a creditor takes steps legally to force the sale of a property in an effort to
collect on a loan in default, it is known as... - ANSWER foreclosure
Foreclosure is... - ANSWER the sale of property to satisfy unpaid debt after a
borrower's default on payments.
What term describes the transfer of ownership of real estate from one owner to
another? - ANSWER conveyance
Enhancing protection and reducing fraud by directing states to adopt minimum
uniform standards for the licensing and registration of residential mortgage loan
originators was the purpose of the federal act known as the... - ANSWER S.A.F.E.
Act
Does a consumer need to pay for a second appraisal if one is needed? - ANSWER
NO
The term "maximum guaranty amount" applies to _____ loans, and it refers to
_____. - ANSWER VA; the maximum amount that the VA will pay to a lender if the
borrower defaults on a loan.
Is it federal law or state law that best describes the fiduciary duty that a loan
originator owes to a consumer? - ANSWER State
The ______ is a trigger term in advertising for both open- and closed-end loans. -
ANSWER Finance Charge
100% financing, more lenient underwriting requirements, and no prepayment
penalties. - ANSWER Advantages of VA loans
Exempt from the ATR rule - ANSWER An open end HELOC
What entity requires to give the CHARM Booklet? - ANSWER TILA
Additional disclosures required in an ad containing a trigger term include... -
ANSWER the amount or percentage of the down payment, the terms of repayment,
and the annual percentage rate.
The Right to Rescind applies to... - ANSWER HELOC / Refinances
How much hazard insurance does FNMA require on a property? - ANSWER 100%
of the insurable replacement cost of project improvements
Examples of FHA loan products... - ANSWER Cash-out refinances, home equity
conversion mortgages, and streamline refinances.
When a creditor revises a Loan Estimate, it must deliver the revised disclosure to the
loan applicant: - ANSWER No later than four business days prior to consummation.
, The funding fee for a first-time user who is regular military, purchasing a home using
a VA loan, is... - ANSWER 2.30%
RESPA requires a refund if an escrow analysis uncovers an overage of greater
than... - ANSWER $50
Overages under $50 found in escrow analysis are... - ANSWER applied to the next
year's escrow payments
Overages over $50 found in escrow analysis are... - ANSWER Required to be
refunded within 30 days.
If a changed circumstance occurs fewer than four business days prior to
consummation... - ANSWER the revised charges may be provided to the consumer
on a revised Closing Disclosure.
The act of unilaterally marking up a fee and retaining the additional earnings is... -
ANSWER not illegal, as long as fee-splitting is not involved.
Lifetime rate caps are used in transactions for adjustable-rate mortgages to limit... -
ANSWER The amount by which a rate can change during a loan term.
Title insurance is required for all loans by the... - ANSWER Lender
Regulation B provides that, when inquiries related to marital status are permitted, the
terms that may be used are... - ANSWER "married," "unmarried," and "separated."
An established business relationship exists if a consumer secured a loan from a
lender within the past... - ANSWER 18 months or within past 3 months to inquire
about loan products.
A _____ lien takes priority over all other liens, regardless of chronological order. -
ANSWER Tax Lien
What legislation was enacted to strengthen money laundering laws to prevent the
financing of terrorist activities? - ANSWER PATRIOT Act
The ______ is a limit on the amount by which the payment can change on any
adjustment date from the current or previous payment amount on an ARM. -
ANSWER Payment Cap
In order to engage in the business of a loan originator, a loan processor who is
working for a mortgage broker must... - ANSWER secure a license as a loan
originator.
The LTV is always based off of the... - ANSWER lower of the purchase price or the
appraised value
A transaction in which the seller provides all or most of the financing is best known
as... - ANSWER Seller Carry-Back
