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50 Cards in this Set

  • Front
  • Back

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

Real Estate Agents

Section 32 of Regulation Z addresses;

High Cost Loans

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

Pay only $700 per month

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

lenders can charge higher rates for assuming the added risk.

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


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

Borrower D whose home is scheduled to go into foreclosure.

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

disregarding income that cannot be verified.

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

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

The term individual refers to;

natural person

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.


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


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

Financial Privacy Rule

Which situation would require a partial release?

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

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

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

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


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

monthly payment amount.

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

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

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

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.

Which disclosure is NOT required by HOEPA?

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

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

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

Federal Housing Administration (FHA)

insures mortgage lenders against default.

All are examples of steering except;

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.

What is the maximum seller concession for an FHA loan?


A occupancy certificate means the;

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

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;


In general terms the immediate family member does NOT include;

non-relatives who reside in the household.

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 _____.

residing in the household.

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

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

An FHA buyer may use a;

gift for the entire down payment.

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

Sporadic overtime and bonuses will not be included.

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

Section X of the Residential Loan Application.

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?

$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.

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

Steering borrowers to a specific MLO.



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?

60 days.

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

owner-occupied retail building

Rural Development loans may be available in;

small towns up to 20,000 people.

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

the recent past to analyze similar sales.

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

misrepresenting his client.

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

alienation clause

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

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

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

appropriate state regulatory authority

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 ___.

the referral is made.

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

Yield Spread Premium

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


____ 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.

Late fees

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


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

total loan amount.

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


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