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CRC exam 2023 with 100% verified accurate answers

CRC exam 2023 with 100% verified accurate answers

CRC exam 2023 with 100% verified accurate answers

CRC exam 2023 with 100% verified accurate answers

Fraud for money Laundering - correct answer --Criminal uses scheme known as value tampering -Criminal offers to buy house at reduced rate -Seller must sell at appraised value on paper, but after closing, seller give the criminal the difference in cash. Adverse Action - correct answer -An unfavorable credit decision rendered against a consumer made on the basis of information contained on the credit application. If a lender takes adverse action against an applicant, the lender must notify ...

A discount point is BEST described as a charge the borrower pays to: A.) A lender to decrease the interest rate on the mortgage loan B.) A mortgage broker at the time of application to obtain a favorable rate C.) The seller as part of the closing costs of a loan D.) A lender to ensure against foreclosure - correct answer A.) A lender to decrease the interest rate on the mortgage loan A buyer has made an earnest money payment of $5,000. The buyer pays an additional $2,000 in option money...

Which of the following describes an air loan? A. A loan that is obtained with inflated property values B. A loan that is repeatedly refinanced with no benefit to the borrower C. A loan that is presented to the borrower with hidden fees D. A loan that is obtained by a fictitious borrower using a fictitious property - correct answerD. A loan that is obtained by a fictitious borrower using a fictitious property It is unethical and illegal to use yield spread premiums for any reason other t...

If a borrow is on the DO NOT CALL LIST and makes an inquiry about doing business with you in regards to a loan, when does right to contact them expire? A. 1 month B. 2 months C. 3 months D. 4 months - correct answer -C. 3 months An established business relationship with a company also will be created if you make an inquiry to the company, or submit an application to it. This kind of established business relationship exists for three months after the inquiry or application. During this t...

A lender provides a borrower with an initial amortization schedule for Private Mortgage Insurance (PMI) disclosure at loan closing for an adjustable-rate mortgage. The lender MUST also provide a written notice stating the A. Lender's right to increase the monthly payment amount for PMI B. Borrower's right to refuse a PMI C. Lender's right to extend the time for monthly payments for a PMI D. Borrower's right to cancel PMI - correct answerD. Borrower's right to cancel PMI The Priv...

ECOA - Reg B - correct answer -Equal Credit Opportunity Act HMDA - Reg C - correct answer -Home Mortgage Disclosure Act RESPA - Reg X - correct answer -Real Estate Settlement Procedures Act TILA - Reg Z - correct answer -Truth In Lending Act HPA - correct answer -Home-owner Protection Act PMI is required when - correct answer -Borrower puts less than 20% down ECOA deals with - correct answer -credit applications HMDA allows to see - correct ans

5/1 Adjustable Rate Mortgage - correct answerA 5/1 adjustable rate mortgage (ARM) or 5-year ARM is a mortgage loan where "5" is the number of years your initial interest rate will stay fixed. The "1" represents how often your interest rate will adjust after the initial five-year period ends. The most common fixed periods are 3, 5, 7, and 10 years and "1," is the most common adjustment period. It's important to carefully read the contract and ask questions if you're considering an ARM. ...

Regulation Z - correct answerEnforced by Consumer Financial Protection Bureau (CFPB), covers the Consumer Protection Act and the Truth in Lending Act (TILA) Consumer Protection Act - correct answerDisclosures of terms of credit Truth in Lending Act (TILA) - correct answerEnforced by the Federal Reserve System, must contain nominal interest rates, loan points and discount points, finance charges, amount financed, annual percentage rate (APR) Nominal Interest Rate - correct answerInterest...

What does TILA stand for? - correct answerTruth-In-Lending Act, Regulation Z What is a HELOC loan? - correct answera secured loan in that you are borrowing against the equity that has been built in your house What is a REFI loan? - correct answer LTV stands for - correct answerLoan to Value Define PMI and state what the acronym stands for. - correct answerPrivate mortgage insurance- on conventional loans Define one time variable funding fee and people in what situations is it waiv...

Primary Mortgage Market - correct answer -Where credit institutions originate loans C. The maximum the rate can increase over the life of the loan - correct answer -When an ARM has rate caps of 5/2/6, the 6 refers to what? A. The maximum rate increase at the initial adjustment B. The start rate for the loan C. The maximum the rate can increase over the life of the loan D. The rate maximum the rate can decrease over the life of the loan B. The borrower qualified at the buydown rate - c...

Which federal law requires that the Loan Estimate be provided to the borrower within three business days of the time of loan application is taken? - correct answer -TILA What type of scam entails homeowners who are encouraged to refinance their property over and over until little or no equity remains? - correct answer -Loan flipping or churning After a loan closing, funds are disbursed. When are the funds disbursed for an owner-occupied, residential refinance? - correct answer -After 3 bus...

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: a. S.A.F.E. Act b. Federal Trade Act c. Consumer Financial Protection Act d. Dodd-Frank Act - correct answer -a. S.A.F.E. Act Loan processors and underwriters may not: a. Communicate with consumers to obtain information necessary for loan processing b. Collect inform...

Acceleration Clause - correct answer Allows lenders to demand payment in full if the borrower defaults on the loan (can be construed as predatory lending) Alienation Clause (Due on Sale Clause) - correct answer Says you must repay your mortgage if you sell your home to a new owner (loan is not assumable) Appraiser Independance Requirements replaced HVCC - correct answer home valuation code of conduct Due on Demand Clause - correct answer (Considered a predatory practice) The lender can ...

When communicating a decision up the organization's chain of command, consulting with outside experts can help a risk management professional do which one of the following? A. Seek feedback from stakeholders B. Stay focused on the organization's objectives C. Define the organization's risk appetite D. Enhance stakeholders' confidence in the process - correct answer -D Which of the following risk management program goals is an essential goal for all public entities? A. Earning stabili...

Traditional Risk Management (TRM) - correct answer- Risks are evaluated in a "silo" approach - Losses are usually insurable, pure risks -focus on cost reduction rather than value creation -root cause analysis (RCA) approach ERM - correct answerEnterprise Risk Management Enterprise Risk Management (ERM) - correct answera comprehensive risk management program that addresses the organization's pure, speculative, strategic, and operational risks Data Capture - correct answerTerm for t...

According to the law of large numbers, as the number of exposure units insured increases, - correct answer The relative accuracy of predictions about future losses increases The fundamental purpose of a risk management framework is to - correct answer Integrate risk management throughout the organization Which one of the following provides a measure of the maximum potential damage associated with an occurrence? - correct answer Exposure Aligning risks with the organization's risk appet...