2025 MORTGAGE EDUCATORS QUESTIONS WITH
ANSWERS GRADED A+ 2025/2026
Which of the following is true of the Home Toolkit booklet? - If there js multiple
borrowers it is only required to be given to one of them
A mortgage broker pays for title services on behalf of the developer. In return the
developer agrees to refer prospective buyers to the mortgage broker? Who has violated
RESPA - Both
John and Jane brown are co owners of a property that is their principal resistance and
are entering into a refinance transaction that is subject to rescission. John is provided
with one Cody of the nothice right to cancel and Jane receives none. What is the
deadline? - 3 years after closing
As a result of provisions included in the Dodd frank act HOEPA was revised to existent
provisions to - Open ended transactions and purchase money mortgages
A small service may be exempt under the servicing rules if it is a nonprofit entity that
services - 5,000 or fewer mortgages
Non public information - Account balance history
Higher priced mortgage loans - Subprime loans with interest rates that are not high
enough to trigger protections under HOEPA but which are subject to some protections
hnder regulation z
Prepaid interest - The creditor promited to charge more that ot discloses in the loan
estimate and still meet the good faith requirnments
The investigators that are conducted to identify perpetrators of financial crimes and the
rule making regarding anti money laundering provisions of the patriot act are carried out
by the ___withing the _____. - The financial crimes enforcement; treasury department
In what area of the loan estimate would a borrower be able to see if their loan has a
balloon payment? - The loan terms table
An application is defined to consist of six pieces of info. This includes borrowers name,
income, and desired loan amount as well as - The borrowers social security number, the
address of the property he or she wishes to purchas and an estimate if the property
value
If the mortgage professional advertises a loan product at 7.25% APR for the first six
months! After first six months APR is 10.5% subject to increase based in market
conditions what if any additional disclosure does TILA require? - No other information is
required
, What is the primary purpose of the truth in lending act - To endure that creditors
propvide consumers clear disclosure of the terms of credit
The loan originator compensation rule is intended to discourage which of the following
practices - Steering
Which of the following would violate section 8 of RESPA and its prohibition against
unearned fees ? - A title company pays a mortgage broker $100 per client for referral of
settlement business
An annual escrow analysis is used to do which of the following - Prevent escrow
charges
If an individual submits false info for the purposes of obtaining a federally covered loan
he could face - A fine up to 1,000,000 and imprisonment
An acceptable anti-money laundering program must include all but which of the
following elements? - Approval by FinCEN prior to its implementation
Finance charge - Cost of credit expressed as a dollar amount
HELOC - Example of open ended credit
Option-ARM - After refinancing a borrower recieves his first mortgage statement and
can choose from payments of 1% of the loan amount, interest only or 30 year
Why are FHA loans beneficial to lenders - They are insured by the federal government
True to VA loans - They are assumable
Negative armortization - Increasing loan balances resulting from the application of
periodic payments that are not suffucient to cover the interest that is due create whkch
of the following for borrowers
The amortization schedule - Detail the principal and interest payments due on a loan
A home purchase - In which of the followinf transactions must the CFPB's "your home
loan tool kit" booklet be provides?
Joan Johnson is a salesperson who is paid 100% commission. What type of
documentation would you ask her to provide as proof of her income for loan
qualification? - Tax returns for the past two years.
Mr. Cyril Cagney is paid $1,800 semi monthly. What is his monthly qualifying income? -
&3600 include equation
ANSWERS GRADED A+ 2025/2026
Which of the following is true of the Home Toolkit booklet? - If there js multiple
borrowers it is only required to be given to one of them
A mortgage broker pays for title services on behalf of the developer. In return the
developer agrees to refer prospective buyers to the mortgage broker? Who has violated
RESPA - Both
John and Jane brown are co owners of a property that is their principal resistance and
are entering into a refinance transaction that is subject to rescission. John is provided
with one Cody of the nothice right to cancel and Jane receives none. What is the
deadline? - 3 years after closing
As a result of provisions included in the Dodd frank act HOEPA was revised to existent
provisions to - Open ended transactions and purchase money mortgages
A small service may be exempt under the servicing rules if it is a nonprofit entity that
services - 5,000 or fewer mortgages
Non public information - Account balance history
Higher priced mortgage loans - Subprime loans with interest rates that are not high
enough to trigger protections under HOEPA but which are subject to some protections
hnder regulation z
Prepaid interest - The creditor promited to charge more that ot discloses in the loan
estimate and still meet the good faith requirnments
The investigators that are conducted to identify perpetrators of financial crimes and the
rule making regarding anti money laundering provisions of the patriot act are carried out
by the ___withing the _____. - The financial crimes enforcement; treasury department
In what area of the loan estimate would a borrower be able to see if their loan has a
balloon payment? - The loan terms table
An application is defined to consist of six pieces of info. This includes borrowers name,
income, and desired loan amount as well as - The borrowers social security number, the
address of the property he or she wishes to purchas and an estimate if the property
value
If the mortgage professional advertises a loan product at 7.25% APR for the first six
months! After first six months APR is 10.5% subject to increase based in market
conditions what if any additional disclosure does TILA require? - No other information is
required
, What is the primary purpose of the truth in lending act - To endure that creditors
propvide consumers clear disclosure of the terms of credit
The loan originator compensation rule is intended to discourage which of the following
practices - Steering
Which of the following would violate section 8 of RESPA and its prohibition against
unearned fees ? - A title company pays a mortgage broker $100 per client for referral of
settlement business
An annual escrow analysis is used to do which of the following - Prevent escrow
charges
If an individual submits false info for the purposes of obtaining a federally covered loan
he could face - A fine up to 1,000,000 and imprisonment
An acceptable anti-money laundering program must include all but which of the
following elements? - Approval by FinCEN prior to its implementation
Finance charge - Cost of credit expressed as a dollar amount
HELOC - Example of open ended credit
Option-ARM - After refinancing a borrower recieves his first mortgage statement and
can choose from payments of 1% of the loan amount, interest only or 30 year
Why are FHA loans beneficial to lenders - They are insured by the federal government
True to VA loans - They are assumable
Negative armortization - Increasing loan balances resulting from the application of
periodic payments that are not suffucient to cover the interest that is due create whkch
of the following for borrowers
The amortization schedule - Detail the principal and interest payments due on a loan
A home purchase - In which of the followinf transactions must the CFPB's "your home
loan tool kit" booklet be provides?
Joan Johnson is a salesperson who is paid 100% commission. What type of
documentation would you ask her to provide as proof of her income for loan
qualification? - Tax returns for the past two years.
Mr. Cyril Cagney is paid $1,800 semi monthly. What is his monthly qualifying income? -
&3600 include equation
