Compucram Questions

Front 1

The state regulatory authority may issue an order suspending the license of a mortgage loan originator if the MLO;

Back 1

fails to file a required report with the state regulatory authority.

Front 2

Any actual travel and reasonable living expenses incurred by an officer of the regulatory authority conducting an examination or investigation of a licensed lender or broker are the responsibility of the

Back 2

lender or broker being examined or investigated

Front 3

Which service is NOT typically provided by the state regulatory authority?

Back 3

provides low-interest loans for low-income families

Front 4

MLO applicants may request a ___ if their application has NOT been approved or is denied by the state regulatory authority within allotted timeframe for the state.

Back 4

hearing

Front 5

The intent if the SAFE Act is for the state regulatory authority to have a ____ administrative authority.

Back 5

broad

Front 6

Which should be included in a state's system of supervision and enforcement of the SAFE Act?

Back 6

authority to subpoena witnesses and documents

Front 7

A loan originator is an individual who;

Back 7

for compensation or gain, takes residential mortgage loan applicants; or offers or negotiates terms of residential mortgage loans.

Front 8

A mortgage banker and/or mortgage lender is;

Back 8

any person who directly originates, acquires, or negotiates mortgage loans.

Front 9

A written or electronically transmitted confirmation issued to a mortgage applicant prior to commitment of a particular rate, number of points, or variable rate terms which will be the rate, number of points, or variable rate terms at which the lender will make the loan, provided that the first mortgage loan is closed by a specified date and that the applicant qualifies for, the loan is referred to as;

Back 9

mortgage rate lock-in

Front 10

Which is FHA's reverse mortgage program?

Back 10

Home Equity Conversion Mortgage

Front 11

A settlement/closing agent is responsible for all except;

Back 11

issuing the final loan approval

Front 12

The percentage of deposits that banks are required to maintain on deposit with the Federal Reserve Board System is called the;

Back 12

reserve requirement

Front 13

The term depository institution includes any;

Back 13

credit union

Front 14

The term person may refer to a;

Back 14

company, natural person, partnership.

Front 15

Who is NOT "taking" a loan application?

Back 15

Rita describes for a borrower the loan application process without any discussion of particular loan products

Front 16

Which is an example of "offering or negotiating the terms of a loan"?

Back 16

Communicating directly or indirectly with a borrower in order to reach a mutual understanding about prospective residential mortgage loan terms.

Front 17

Which may be charged to a License applicant?

Back 17

fee for NMLS processing

Front 18

Of these, who must have a mortgage loan originator license?

Back 18

Bella, who is paid a fee for taking mortgage loan applicants for a mortgage broker

Front 19

Which license may NOT be issued to a corporation?

Back 19

MLO

Front 20

Maureen, an MLO, retakes the same approved 2-hour online course in nontraditional mortgage products she took the previous year but she cannot count it toward her continuing education requirements for license renewal because;

Back 20

She cannot receive credit for the same course taken in the same or successive years.

Front 21

A licensed mortgage loan originator must comply with requirements for license renewal;

Back 21

annually by December 31

Front 22

Wayne has been hired by Reasonable Mortgage Company to collect or receive payments of principal, interest, and escrow due to the note holder for residential mortgage loans. Wayne's job is;

Back 22

a mortgage servicer and does not require licensing.

Front 23

The SAFE Act mandates specific topics that must be covered as part of a state licensed mortgage loan originators continuing education every year. Which topic is NOT required?

Back 23

Conventional Mortgage products...../ Ethics, Federal law, and nontraditional mortgage products are all required.

Front 24

Which task requires licensing?

Back 24

taking a mortgage loan application on behalf of a loan originator

Front 25

A mortgage broker is likely to perform any of these tasks except;

Back 25

make mortgage loans

Front 26

A mortgage broker is likely to___.

Back 26

Negotiate terms of a residential mortgage, offer to solicit mortgage loans, and place mortgage loans.

Front 27

Which is NOT an acceptable disbursement from a trust account?

Back 27

payments to the lender.

Front 28

Which statement about a loan originator advertising to solicit mortgage business is FALSE?

Back 28

The loan originator may advertise exclusively in his or her own name, which is false.

Front 29

A mortgage industry ad is considered misleading if it includes;

Back 29

the words "immediate approval"..

Front 30

An example of a third party fee would be a;

Back 30

Pest inspection fee

Front 31

The standard annual continuing education requirements for the renewal of a mortgage loan originator license include ___ hours of instruction on federal law and regulations.

Back 31

3

Front 32

A licensee who opens a branch location must;

Back 32

employ a branch manager at each location.

Front 33

Which conduct by an MLO is allowed?

Back 33

disbursing the mortgage loan proceeds into a customer's account via direct deposit.

Front 34

Which of the following is NOT a requirement for a lock-in agreement?

Back 34

fees for lock-in are refunded after closing. they are not.

Front 35

If a licensee has a particular conflicting interest in a mortgage loan transaction, the licensee must;

Back 35

disclose in writing that an affiliated business relationship exists among providers.

Front 36

The required document that discloses the estimated charges for settlement services is the;

Back 36

GFE

Front 37

Name some third party fees;

Back 37

Pest inspection, survey, title search

Front 38

Which is NOT considered a third party fee?

Back 38

broker commission is not considered.

Front 39

If included as part of a loan document, a late charge or penalty may be assessed due to delinquency in making all or any part of a periodic payment under a mortgage note. The late charge or penalty fee may be;

Back 39

charged only once for the particular late payment

Front 40

The MLO cannot charge the borrower a fee for preparing the____.

Back 40

GFE

Front 41

According to advertising guidelines, if the word fixed is used, it must be accompanied by the ____.

Back 41

Fixed time period.

Front 42

The ___ addresses advertising by creditors, including mortgage loan originators.

Back 42

Truth In Lending Act

Front 43

A mortgage broker also owns a title company. Is this business arrangement allowed?

Back 43

Yes, as long as the title company is legitimate and the arrangement is disclosed.

Front 44

A ___ is someone whose name and personal information is used to obtain a loan, in this case, for property in which she will not live. This is also both identity theft and fraud.

Back 44

Straw buyer.

Front 45

As a result of the Mortgage Disclosure Improvement Act, how soon can a residential loan close?

Back 45

on the seventh business day after delivery of required disclosures.

Front 46

Disclosing income such as child support and alimony is NOT required of the borrower. When this type of income is disclosed on the application, what act requires that it be considered in the approval process?

Back 46

Equal Credit Opportunity Act.

Front 47

A ____ is an introductory rate the lender approves on a mortgage loan. This is a short-term rate and can adjust according to the terms and conditions outlined in the note.

Back 47

teaser rate.

Front 48

MLO Jon from ABD mortgage is meeting with a potential borrower. What may Jon NEVER ask about during the loan application process?

Back 48

Religion

Front 49

The Privacy Rule of the Gramm-Leach-Bliley Act requires that financial institutions provide the consumer with a Consumer Privacy Policy;

Back 49

before disclosing information to non-affiliated third parties.

Front 50

Who would be subject to fines and penalties if a kickback is paid?

Back 50

all parties paying or receiving a kickback.

Front 51

What law requires the term equal housing lender to be used in any advertisement that is broadcast over the airwaves?

Back 51

Fair Housing Act. The Fair Housing Act requires that the Equal Housing Opportunity logo be displayed in all printed material and the term equal housing lender must be used when broadcast over the airwaves.

Front 52

Which form documents the commission paid to a real estate broker?

Back 52

HUD-1 Statement

Front 53

_____ relates to buyers or renters and is defined as channeling prospective buyers or renters to or away from specific neighborhoods.

Back 53

Steering

Front 54

Which regulation ensures that some borrowers have the right of rescission for 3 business days after a loan contract is signed?

Back 54

Reg Z

Front 55

_____ requires the disclosure of the total finance charges and loan terms in the TIL Statement; _____ requires lenders to provide a GFE of closing costs and a HUD-1 Settlement Statement.

Back 55

TILA and RESPA

Front 56

If an ad mentions the interest rate on a specific loan product, that interest rate must be;

Back 56

made available to a responsible number of qualified applicants.