Compucram Missed Test Questions

Front 1

_____ are more likely to have perpetrated fraud by preparing a bogus sales contract than these other industry insiders.

Back 1

Real Estate Agents

Front 2

Section 32 of Regulation Z addresses;

Back 2

High Cost Loans

Front 3

Which statement would trigger loan term disclosure for advertising purposes according to TILA?

Back 3

Pay only $700 per month

Front 4

Some lenders and investors are willing to make subprime loans because;

Back 4

lenders can charge higher rates for assuming the added risk.

Front 5

The regulation that aids examiners in evaluating lending practices in the communities the lenders serve by making certain lending practices public record is;

Back 5

HMDA

Front 6

Which consumer would be most likely to be able to waive the waiting period and expedite the closing on a refinance?

Back 6

Borrower D whose home is scheduled to go into foreclosure.

Front 7

Under laws related to fair lending and fair housing, which is legal?

Back 7

disregarding income that cannot be verified.

Front 8

The intended purpose of the Dodd-Frank Wall Street Reform and Consumer Protection Ace ( Dodd-Frank Act) is to;

Back 8

promote the financial stability of the United States by improving accountability and transparency in the market place.

Front 9

The term individual refers to;

Back 9

natural person

Front 10

A borrower who has a FICO score of BELOW 580, is required to make a minimum down payment of at least ___ for an FHA loan.

Back 10

10%

Front 11

Ike closes a loan with Max Mortgage. His name is not on the National Do Not Call Registry. Max Mortgage can call Ike;

Back 11

indefinitely

Front 12

Which rule allows consumers to opt out of having their private information shared?

Back 12

Financial Privacy Rule

Front 13

Which situation would require a partial release?

Back 13

A borrow wishes to sell a property that is part of a blanket mortgage.

Front 14

The APR as required to be disclosed in a TIL Statement is the;

Back 14

relationship between the total cost of borrowing and the actual amount borrowed

Front 15

One of the most critical points of the Federal Reserve Loan Originator Compensation Rule is the prohibition of the practice of;

Back 15

steering

Front 16

When qualifying for a residential mortgage loan, an applicant's debts are likely to be measured as a;

Back 16

monthly payment amount.

Front 17

Which item is a lender permitted to include in a high-cost loan?

Back 17

call provision to accelerate indebtedness in the event of a bona fide default.

Front 18

The residential mortgage lender may accept fees from the borrower to obtain a credit report without disclosing the;

Back 18

APR. The APR must be disclosed after the application is received, prior to issuing a commitment, or if the interest rate is not subject to increase before the expiration of the commitment.

Front 19

Which disclosure is NOT required by HOEPA?

Back 19

Right of credit score. Section 32 does not require a lender to disclose the consumers right to get a copy of his credit score.

Front 20

Which information is NOT required to be included on the HUD-1 Settlement Statement?

Back 20

Property appraised value. The appraised value is not shown on the settlement statement, but the other data must be included.

Front 21

Federal Housing Administration (FHA)

Back 21

insures mortgage lenders against default.

Front 22

All are examples of steering except;

Back 22

he loan originator presents Carol, the borrower, with a loan product she easily qualifies for that offers the lowest risk to the borrower yet lower compensation to the lender.

Front 23

What is the maximum seller concession for an FHA loan?

Back 23

6%

Front 24

A occupancy certificate means the;

Back 24

borrower has permission to move into the home from the zoning department.

Front 25

A real estate agent believes that his hispanic client would probably prefer to live in a more diverse neighborhood, and so he only shows her homes where there is a higher concentration of residents from Guatemala. This agent is guilty of;

Back 25

steering

Front 26

In general terms the immediate family member does NOT include;

Back 26

non-relatives who reside in the household.

Front 27

In general, the term immediate family member as defined would not apply to a live in maid or nanny or houseguest that is a non relative even if _____.

Back 27

residing in the household.

Front 28

When taking an application for a mortgage loan, what are creditors NOT permitted to ask?

Back 28

Do you receive child support? Creditors are not permitted to ask a potential borrower whether he or she receives child support.

Front 29

An FHA buyer may use a;

Back 29

gift for the entire down payment.

Front 30

All may be included in a borrower's income analysis EXCEPT;

Back 30

Sporadic overtime and bonuses will not be included.

Front 31

During the loan process, you find the government monitoring information on;

Back 31

Section X of the Residential Loan Application.

Front 32

Robby has a house that appraises for $125,000. Robby qualifies for an 85% LTV. He owes $63,000 on his first mortgage and $5,000 on his second mortgage. He would like to refinance his house into one mortgage loan and receive additional cash to pay off the other debt. How much cash would be available if his closing costs are $4,200 and are financed in the loan?

Back 32

$34,050. First, determine the maximum loan amount Robby qualifies for; $125,000 x 85% = $106,250. Now, subtract the current debt and closing costs: $106250 - $63,000 - $5,000 - $4,200 = $34,050 cash available.

Front 33

Which of the following is the most likely indicator of a fraud for profit scheme?

Back 33

Steering borrowers to a specific MLO.

Front 34

MDIA

Back 34

Reg Z TILA

Front 35

How many days after receiving an adverse action notice does a consumer have to request a copy of the credit report on which the decision was based?

Back 35

60 days.

Front 36

Which transaction does NOT require the use of the HUD-1 Settlement Statement?

Back 36

owner-occupied retail building

Front 37

Rural Development loans may be available in;

Back 37

small towns up to 20,000 people.

Front 38

When using the sales comparison approach to arrive at an opinion of value, an appraiser looks into;

Back 38

the recent past to analyze similar sales.

Front 39

A loan originator who provides false information on a loan application regarding a borrower's receipt of disability income is;

Back 39

misrepresenting his client.

Front 40

The clause in the mortgage that makes the note due in full upon sale or transfer of a property is called;

Back 40

alienation clause

Front 41

Which occurrence WOULD NOT require the licensee to file a written report with the state regulatory authority?

Back 41

Marsha, a licensed MLO, is cited for driving while intoxicated.

Front 42

Information about an appraiser misconduct must file a report with the;

Back 42

appropriate state regulatory authority

Front 43

Since the broker has an ownership interest in the home inspection business she operates with her brother, the home inspector, an Affiliated Business Arrangement disclosure is required by RESPA at the time ___.

Back 43

the referral is made.

Front 44

When the broker negotiates a higher rate than the lender offers, the lender pays the broker;

Back 44

Yield Spread Premium

Front 45

Which law sets forth escrow requirements for higher priced mortgage loans?

Back 45

TIL Act

Front 46

____ are permitted in the loan terms for a HOEPA covered loan, however, keep in mind that late fees are restricted in that they cannot exceed 4% of the past due payment. The other choices are all prohibited.

Back 46

Late fees

Front 47

Which federal legislation requires that a credit decision be made within 30 days of application?

Back 47

ECOA

Front 48

Which loan characteristic may be used to determine the fee that a mortgage loan originator is paid?

Back 48

total loan amount.

Front 49

What federal legislation allows the borrower to challenge the value stated on an appraisal report?

Back 49

ECOA

Front 50

The ___ requires that, if the borrower wishes to disclose this information on the loan application, it must be used in the underwriting decision.

Back 50

ECOA