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28 Cards in this Set
- Front
- Back
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melissa intentionally tells her mortgage broker from who she's trying to get a loan from that she receives $1200 for child support but it's really $800 |
this is omission |
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which information is governed by RESPA? |
buyer assumes existing first-lien loan |
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mortgage loan originator susan may |
negotiate a mortgage loan less than $5000 |
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MLO rob meets the patriot act signed from a buddy that he is doing a loan for. he cuts and pastes his signature what fraud is this? |
fraud by deception |
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walter has been assigned the task of developing an identity theft prevention program for the owner of a new mortgage brokerage company. compliance with which of the following requires the development and implementation of an identity theft program? |
red flag rules |
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which closing document itemizes final closing costs and items paid in connection with the loan for the borrower? |
HUD-1 |
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To be in compliance, which individual will need to become a registered mortgage loan originator and obtain a unique identifier from the registry through NMLS? |
an employee of a mortgage broker who analyzes information related to processing of residential mortgage loans. |
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which is the type of loan where a seller may finance all or part of the sale of property for the buyer? |
with a purchase money mortgage , the seller may finance all or part of the sale of property for the buyer. the seller retains a mortgage as security and title passes to the buyer. |
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who is taking a loan application? |
Ellen responds to a borrower's request for a different rate or fees by presenting the borrower with a revised loan offer. |
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what is NOT a purpose of the Home Mortgage Disclosure Act? |
allow the creditor to determine the risk of the loan by reviewing the race, sex and national origin of the borrower. |
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if a licensed mortgage loan originator is convicted of a felony, who is responsible for reporting this information to the NMLS? |
mortgage loan originator |
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one of the purposes of the Qualified Mortgage (QM) definition is to: |
prohibit or limit certain high-risk mortgage products and features. |
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A loan servicer who fails to submit an annual escrow statement to a borrower may result in |
civil penalties
**section 10 authorizes HUD to impose civil penalties on loan services who fail to submit initial or annual escrow statements to borrowers. |
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According to the Truth in lending act, which of these would be EXCLUDED from the finance charge? |
Seller's points
** among other things, seller's points are not included in the finance charge. The other choices would be included in the finance charge. |
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According to TILA what would be included in a FINANCE CHARGE? |
1.interest 2.credit report 3.points |
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which federal legislation allows a borrower three business days to reconsider an owner-occupied refinance transaction? |
TILA,
**allows for 3 business-day right of recession. furthermore the act specifies that the recession period requires only notification and the document does not have to be handed to the lender. |
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The interim final rule on valuation does NOT prohibit an appraiser from |
being paid a fee by a creditor based on what's customary for that area. |
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what is a short-term mortgage in which small periodic payments are made based on regular amortization until the completion of the term, at which time the balance is due as a single lump-sum payment? |
balloon mortgage
**the most common balloon mortgage is a 15/30. That means that the loan is amortized as a 30-year fixed but the balance is due in 15 years. The loan must be paid off or refinance at that time. |
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RESPA does NOT require the lender to disclose |
APR
**RESPA does not require the lender to disclose the APR. Required disclosures are GFE and HUD-1, the Mortgage Servicing Disclosure, the initial and Annual Escrow Statements, and the AfBA disclosure. |
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Rural Development loans may be available in |
small towns up to 20,000 people |
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Which is NOT a purpose for the Mortgage Servicing Disclosure Statement? |
to inform the consumer the likelihood that the mortgage could be sold
**all mortgages are sold and the consumer is not affected by the selling of the mortgage. The consumer is only affected if the "servicing" of the mortgage is sold (who the customer makes the payment to) |
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After investigating a charge of fraud against loan originator Mark, the state regulatory authority permanently withdraws his license. What is this known as? |
revocation is the permanent withdrawal of a license. When a state's regulatory authority revokes a license, the loan originator must be notified in writing that the license is revoked and that the individual may not engage in the business of loan originating in the state. |
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Which of the following is NOT a feature of a QM? |
debt-to-income ratio of 45%
the debt-to -income ratio for a QM must not exceed 43% |
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What is the legal clause that gives the lender certain stated rights when there is a transfer of ownership in the property? |
alienation
**gives the lender certain stated rights when there is a transfer of ownership in the property. |
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Why are extra cash reserves required in a construction loan? |
1.to lower the risk for the lender 2.to pay for added time delays that result in more payments 3.to pay for cost overruns |
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All the following would be considered evidence of adverse credit history EXCEPT |
outstanding unpaid hospital bills
**outstanding medical bills are considered an exception when reviewing credit history. |
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MLO Rob need the patriot act signed, he cuts and pastes the correct information, knowing his friend who is the borrower is not a terrorist. What type of fraud is this? |
Misrepresentation
any form of altered documentation is considered a misrepresentation. |
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Which of the following is correct regarding third party processing companies? |
They are not required to be licensed as a mortgage broker |
