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Multi-choice Question Aswering | A loan officer takes an application on Friday. His business fully operates Monday through Saturday. By when must the loan estimate be issued?
A. Tuesday
B. Wednesday
C. By close of business that day
D. Within seven days prior to closing
Answer:A | A loan officer takes an application on Friday. His business fully operates Monday through Saturday. By when must the loan estimate be issued? | Answer:A | [
"A. Tuesday",
"B. Wednesday",
"C. By close of business that day",
"D. Within seven days prior to closing"
] | null |
Multi-choice Question Aswering | If the closing disclosure is sent to the customer electronically on Monday, when would the first opportunity to close be?
A. Thursday
B. Friday
C. Tuesday of the following week
D. Saturday
Answer:C | If the closing disclosure is sent to the customer electronically on Monday, when would the first opportunity to close be? | Answer:C | [
"A. Thursday",
"B. Friday",
"C. Tuesday of the following week",
"D. Saturday"
] | null |
Multi-choice Question Aswering | Which of the following is not one of the three primary credit repositories?
A. Trans Union
B. Experian
C. Equifax
D. CAIVRS
Answer:D | Which of the following is not one of the three primary credit repositories? | Answer:D | [
"A. Trans Union",
"B. Experian",
"C. Equifax",
"D. CAIVRS"
] | null |
Multi-choice Question Aswering | If a property is worth $750,000 and the borrower has a first mortgage of $227,000 and a second mortgage of $125,000, what is the LTV and CLTV?
A. 30/17
B. 30/47
C. 17/30
D. 47/30
Answer:B | If a property is worth $750,000 and the borrower has a first mortgage of $227,000 and a second mortgage of $125,000, what is the LTV and CLTV? | Answer:B | [
"A. 30/17",
"B. 30/47",
"C. 17/30",
"D. 47/30"
] | null |
Multi-choice Question Aswering | If two loans together achieve an 83% CLTV and the second loan is at 23% LTV, what is the LTV of the first loan?
A. 23%
B. 106%
C. 60%
D. 37%
Answer:C | If two loans together achieve an 83% CLTV and the second loan is at 23% LTV, what is the LTV of the first loan? | Answer:C | [
"A. 23%",
"B. 106%",
"C. 60%",
"D. 37%"
] | null |
Multi-choice Question Aswering | A property is worth $325,000. The homeowners owe a first mortgage of $112,000 along with a $70,000 home equity line of credit of which $45,000 is currently outstanding. What is the property’s TLTV?
A. 34%
B. 14%
C. 48%
D. 56%
Answer:D | A property is worth $325,000. The homeowners owe a first mortgage of $112,000 along with a $70,000 home equity line of credit of which $45,000 is currently outstanding. What is the property’s TLTV? | Answer:D | [
"A. 34%",
"B. 14%",
"C. 48%",
"D. 56%"
] | null |
Multi-choice Question Aswering | An ARM is currently at 3.25% and set to adjust. The index is currently at 1.125% and the margin has been established at 4.25%. To what will the borrower’s interest rate adjust?
A. 7.5%
B. 5.375%
C. 4.375%
D. 8.625%
Answer:B | An ARM is currently at 3.25% and set to adjust. The index is currently at 1.125% and the margin has been established at 4.25%. To what will the borrower’s interest rate adjust? | Answer:B | [
"A. 7.5%",
"B. 5.375%",
"C. 4.375%",
"D. 8.625%"
] | null |
Multi-choice Question Aswering | A borrower purchased a home for $300,000 and their LTV is 80%. They paid $3,600 in discount points. How many points did they pay?
A. 2
B. 4
C. 3.5
D. 1.5
Answer:D | A borrower purchased a home for $300,000 and their LTV is 80%. They paid $3,600 in discount points. How many points did they pay? | Answer:D | [
"A. 2",
"B. 4",
"C. 3.5",
"D. 1.5"
] | null |
Multi-choice Question Aswering | A buyer purchases a home for which the seller pledges to fund a 2-1 buydown. The buyer’s note rate results in a payment of $1,200. If the 2-1 buydown would have the buyer remitting a P&I payment of $1,075 for year one and $1,107 for year two, how much did the 2-1 buydown cost the seller?
A. $2,182
B. $3,000
C. $2,616
D. $3,382
Answer:C | A buyer purchases a home for which the seller pledges to fund a 2-1 buydown. The buyer’s note rate results in a payment of $1,200. If the 2-1 buydown would have the buyer remitting a P&I payment of $1,075 for year one and $1,107 for year two, how much did the 2-1 buydown cost the seller? | Answer:C | [
"A. $2,182",
"B. $3,000",
"C. $2,616",
"D. $3,382"
] | null |
Multi-choice Question Aswering | If a buyer decides to buy a home for $175,000, put 10% down, and pay 1.5% in discount points, how much money will he spend on points?
A. $2,362.50
B. $2,625.00
C. $262.50
D. $236.25
Answer:A | If a buyer decides to buy a home for $175,000, put 10% down, and pay 1.5% in discount points, how much money will he spend on points? | Answer:A | [
"A. $2,362.50",
"B. $2,625.00",
"C. $262.50",
"D. $236.25"
] | null |
Multi-choice Question Aswering | If a buyer refinances his loan, his monthly P&I will drop by $175 to $1,025. If his monthly real estate taxes are $125, his monthly homeowner’s insurance is $60, and his income is $72,000 annually. What was his previous housing expense?
A. 20%
B. 23%
C. 19%
D. 17%
Answer:B | If a buyer refinances his loan, his monthly P&I will drop by $175 to $1,025. If his monthly real estate taxes are $125, his monthly homeowner’s insurance is $60, and his income is $72,000 annually. What was his previous housing expense? | Answer:B | [
"A. 20%",
"B. 23%",
"C. 19%",
"D. 17%"
] | null |
Multi-choice Question Aswering | If a borrower chooses an above-par interest rate that results in a closing cost credit of 2%, how much would her settlement costs be reduced assuming a purchase price of $230,000 and a down payment of 15%?
A. $4,600
B. $690
C. $3,910
D. $2,932
Answer:C | If a borrower chooses an above-par interest rate that results in a closing cost credit of 2%, how much would her settlement costs be reduced assuming a purchase price of $230,000 and a down payment of 15%? | Answer:C | [
"A. $4,600",
"B. $690",
"C. $3,910",
"D. $2,932"
] | null |
Multi-choice Question Aswering | A buyer buys a home for $395,000 and puts 25% down. What is the amount of his down payment?
A. $97,850
B. $296,250
C. $98,750
D. $74,062
Answer:C | A buyer buys a home for $395,000 and puts 25% down. What is the amount of his down payment? | Answer:C | [
"A. $97,850",
"B. $296,250",
"C. $98,750",
"D. $74,062"
] | null |
Multi-choice Question Aswering | A buyer’s loan amount is $225,000 on a $410,000 purchase price. How much was her down payment and what percent of the purchase price was it?
A. $185,000/55
B. $225,000/45
C. $225,000/55
D. $185,000/45
Answer:D | A buyer’s loan amount is $225,000 on a $410,000 purchase price. How much was her down payment and what percent of the purchase price was it? | Answer:D | [
"A. $185,000/55",
"B. $225,000/45",
"C. $225,000/55",
"D. $185,000/45"
] | null |
Multi-choice Question Aswering | A buyer wishes to purchase a home for $310,000 and has $30,000 for a down payment. He wishes to avoid paying PMI. What is the easiest way to structure this transaction using piggyback financing?
A. Originate a $290,000 loan amount
B. It cannot be done - the borrower will have to have PMI or come up with a larger down payment
C. Originate a $248,000 first mortgage and a $30,000 second mortgage
D. Originate a $248,000 first mortgage and a $32,000 second mortgage
Answer:D | A buyer wishes to purchase a home for $310,000 and has $30,000 for a down payment. He wishes to avoid paying PMI. What is the easiest way to structure this transaction using piggyback financing? | Answer:D | [
"A. Originate a $290,000 loan amount",
"B. It cannot be done - the borrower will have to have PMI or come up with a larger down payment",
"C. Originate a $248,000 first mortgage and a $30,000 second mortgage",
"D. Originate a $248,000 first mortgage and a $32,000 second mortgage"
] | null |
Multi-choice Question Aswering | A purchase price is $400,000 and the buyer wishes to apply $30,000 as a down payment. The seller is offering a 3% seller’s concession. What is the value of the seller’s concessions?
A. $900
B. $11,100
C. $12,000
D. $10,000
Answer:C | A purchase price is $400,000 and the buyer wishes to apply $30,000 as a down payment. The seller is offering a 3% seller’s concession. What is the value of the seller’s concessions? | Answer:C | [
"A. $900",
"B. $11,100",
"C. $12,000",
"D. $10,000"
] | null |
Multi-choice Question Aswering | If a borrower’s income is $6,500 per month, his back-end DTI is 32%, and his monthly, non-housing related expenses amount to $1,115, what is the total of his housing expense?
A. $2,080
B. $965
C. $356.80
D. $4,160
Answer:B | If a borrower’s income is $6,500 per month, his back-end DTI is 32%, and his monthly, non-housing related expenses amount to $1,115, what is the total of his housing expense? | Answer:B | [
"A. $2,080",
"B. $965",
"C. $356.80",
"D. $4,160"
] | null |
Multi-choice Question Aswering | A borrower is buying a home for $110,000 and has $15,000 to put down on a conventional mortgage. The home appraises for $125,000. Will she need to pay PMI?
A. No - with the higher value the LTV will be 76% and PMI will no longer be required
B. Yes - even though the value came in higher, the lender must utilize the lower purchase price when calculating the initial LTV
C. It depends on whether or not the automated underwriting system requires PMI
D. Yes - the purchase price will have to be raised to meet the value
Answer:B | A borrower is buying a home for $110,000 and has $15,000 to put down on a conventional mortgage. The home appraises for $125,000. Will she need to pay PMI? | Answer:B | [
"A. No - with the higher value the LTV will be 76% and PMI will no longer be required",
"B. Yes - even though the value came in higher, the lender must utilize the lower purchase price when calculating the initial LTV",
"C. It depends on whether or not the automated underwriting system requires PMI",
"D. Yes - the purchase price will have to be raised to meet the value"
] | null |
Multi-choice Question Aswering | A mortgage originator advises a customer to consider accepting a higher interest rate in order to subsidize his settlement charges since he has no other funds. The borrower is qualified for the payment at the higher interest rate. This is:
A. Legal and ethical
B. Legal and unethical
C. Illegal and ethical
D. Illegal and unethical
Answer:A | A mortgage originator advises a customer to consider accepting a higher interest rate in order to subsidize his settlement charges since he has no other funds. The borrower is qualified for the payment at the higher interest rate. This is: | Answer:A | [
"A. Legal and ethical",
"B. Legal and unethical",
"C. Illegal and ethical",
"D. Illegal and unethical"
] | null |
Multi-choice Question Aswering | Which of the following actions would constitute an ethical violation?
A. Promising reciprocal referrals to a potential referral source
B. Offering to pay $100 for each referral received
C. Mailing thank-you cards in response to referrals
D. Conducting joint marketing endeavors
Answer:B | Which of the following actions would constitute an ethical violation? | Answer:B | [
"A. Promising reciprocal referrals to a potential referral source",
"B. Offering to pay $100 for each referral received",
"C. Mailing thank-you cards in response to referrals",
"D. Conducting joint marketing endeavors"
] | null |
Multi-choice Question Aswering | Advertising a product that sounds too good to be true, telling inquirers that the product has been discontinued, and attempting to sell them something else is an unethical example of:
A. Rope-a-dope advertising
B. Hide and seek sales tactics
C. Bait and switch advertising
D. False comparison
Answer:C | Advertising a product that sounds too good to be true, telling inquirers that the product has been discontinued, and attempting to sell them something else is an unethical example of: | Answer:C | [
"A. Rope-a-dope advertising",
"B. Hide and seek sales tactics",
"C. Bait and switch advertising",
"D. False comparison"
] | null |
Multi-choice Question Aswering | A loan originator informs a customer pursuing a stated income loan of what income amount must be stated in order to make the loan work. This is an ethical violation because:
A. The customer didn’t ask the loan originator before being informed
B. A loan originator may not prompt a customer
C. It is not an ethical violation because it is a stated loan and income really does not matter
D. The loan originator is a party to the transaction
Answer:B | A loan originator informs a customer pursuing a stated income loan of what income amount must be stated in order to make the loan work. This is an ethical violation because: | Answer:B | [
"A. The customer didn’t ask the loan originator before being informed",
"B. A loan originator may not prompt a customer",
"C. It is not an ethical violation because it is a stated loan and income really does not matter",
"D. The loan originator is a party to the transaction"
] | null |
Multi-choice Question Aswering | The overall governing entity of the mortgage industry is:
A. The CSBS
B. The NMLS&R
C. The CFPB
D. HUD
Answer:C | The overall governing entity of the mortgage industry is: | Answer:C | [
"A. The CSBS",
"B. The NMLS&R",
"C. The CFPB",
"D. HUD"
] | null |
Multi-choice Question Aswering | Which of the following communications would be acceptable to direct to an appraiser?
A. I need the property value to come in at no less than $250,000
B. I need the property value to come in at no greater than $250,000
C. If you wish to be paid, you will need to re-value this home to a higher value
D. Would you please explain why you came up with the value that you did
Answer:D | Which of the following communications would be acceptable to direct to an appraiser? | Answer:D | [
"A. I need the property value to come in at no less than $250,000",
"B. I need the property value to come in at no greater than $250,000",
"C. If you wish to be paid, you will need to re-value this home to a higher value",
"D. Would you please explain why you came up with the value that you did"
] | null |
Multi-choice Question Aswering | A Realtor refers his client to the mortgage originator of a company in which the real estate company has an ownership interest. The Realtor provides an ABAD advising the customer of the ownership interest and makes him aware that he is free to use the services of any mortgage professional. The Realtor:
A. Complied with the law but conducted his business unethically
B. Complied with the law and conducted his business ethically
C. Violated the law but conducted his business ethically
D. Violated the law and conducted his business unethically
Answer:B | A Realtor refers his client to the mortgage originator of a company in which the real estate company has an ownership interest. The Realtor provides an ABAD advising the customer of the ownership interest and makes him aware that he is free to use the services of any mortgage professional. The Realtor: | Answer:B | [
"A. Complied with the law but conducted his business unethically",
"B. Complied with the law and conducted his business ethically",
"C. Violated the law but conducted his business ethically",
"D. Violated the law and conducted his business unethically"
] | null |
Multi-choice Question Aswering | A title company hosts a holiday party and invites members of the real estate community from which it has received and to which it has referred business throughout the previous year. Food and drinks are served at the party. The actions of the hosts and attendees are:
A. Legal since it is simply expressing and accepting appreciation for the year's business
B. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering both the hosts and guests in violation of RESPA
C. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering the hosts in violation of RESPA
D. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering the guests in violation of RESPA
Answer:B | A title company hosts a holiday party and invites members of the real estate community from which it has received and to which it has referred business throughout the previous year. Food and drinks are served at the party. The actions of the hosts and attendees are: | Answer:B | [
"A. Legal since it is simply expressing and accepting appreciation for the year's business",
"B. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering both the hosts and guests in violation of RESPA",
"C. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering the hosts in violation of RESPA",
"D. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering the guests in violation of RESPA"
] | null |
Multi-choice Question Aswering | A home inspector messengers a mortgage company a box of chocolates around holiday time. Upon delivery, the mortgage company’s receptionist politely refuses the delivery. Who has violated RESPA?
A. Both the home inspector and the mortgage company
B. The mortgage company
C. The home inspector
D. Neither the mortgage company nor the home inspector
Answer:C | A home inspector messengers a mortgage company a box of chocolates around holiday time. Upon delivery, the mortgage company’s receptionist politely refuses the delivery. Who has violated RESPA? | Answer:C | [
"A. Both the home inspector and the mortgage company",
"B. The mortgage company",
"C. The home inspector",
"D. Neither the mortgage company nor the home inspector"
] | null |
Multi-choice Question Aswering | A mortgage originator conducts a seminar teaching Realtors about a new mortgage product. During this seminar, the mortgage originator serves lunch to the attendees. Which of the following statements apply?
A. Both the mortgage originator and the Realtors violated RESPA since they are potential referral sources and the served lunch is a thing of value
B. Both the mortgage originator and the Realtors remained compliant because the purpose of the gathering was educational
C. The mortgage originator violated RESPA but the Realtors remained compliant
D. The mortgage originator remained compliant but the Realtors violated RESPA
Answer:B | A mortgage originator conducts a seminar teaching Realtors about a new mortgage product. During this seminar, the mortgage originator serves lunch to the attendees. Which of the following statements apply? | Answer:B | [
"A. Both the mortgage originator and the Realtors violated RESPA since they are potential referral sources and the served lunch is a thing of value",
"B. Both the mortgage originator and the Realtors remained compliant because the purpose of the gathering was educational",
"C. The mortgage originator violated RESPA but the Realtors remained compliant",
"D. The mortgage originator remained compliant but the Realtors violated RESPA"
] | null |
Multi-choice Question Aswering | What would the most ethical response be to a potential mortgage applicant who asks, “How much income do I need to earn in order to qualify for a purchase price of $325,000?”
A. We look at 36% of your gross monthly income, subtract out your monthly expenses, and that leaves what's available for your monthly mortgage payment
B. It would be great if you earned $6,000 a month or more, wink wink
C. Why don't we review your pay stubs, tax returns, and asset statements to calculate your income
D. It depends on the strength of your credit
Answer:C | What would the most ethical response be to a potential mortgage applicant who asks, “How much income do I need to earn in order to qualify for a purchase price of $325,000?” | Answer:C | [
"A. We look at 36% of your gross monthly income, subtract out your monthly expenses, and that leaves what's available for your monthly mortgage payment",
"B. It would be great if you earned $6,000 a month or more, wink wink",
"C. Why don't we review your pay stubs, tax returns, and asset statements to calculate your income",
"D. It depends on the strength of your credit"
] | null |
Multi-choice Question Aswering | The term “Caveat Emptor” means:
A. Let those with food get fat
B. Let the qualified be awarded
C. Let the buyer beware
D. Unity for all
Answer:C | The term “Caveat Emptor” means: | Answer:C | [
"A. Let those with food get fat",
"B. Let the qualified be awarded",
"C. Let the buyer beware",
"D. Unity for all"
] | null |
Multi-choice Question Aswering | Redlining refers to:
A. Conducting predatory lending practices in a particular geographic area
B. Avoiding particular geographic areas based on perceived characteristics of the area's inhabitants
C. Rushing a mortgage application through the system
D. Applying extra scrutiny against a particular customer's mortgage application
Answer:B | Redlining refers to: | Answer:B | [
"A. Conducting predatory lending practices in a particular geographic area",
"B. Avoiding particular geographic areas based on perceived characteristics of the area's inhabitants",
"C. Rushing a mortgage application through the system",
"D. Applying extra scrutiny against a particular customer's mortgage application"
] | null |
Multi-choice Question Aswering | A cursory walk-through prior to closing may be an indication of:
A. Someone trying to hide something
B. A last-minute need to see the property before closing
C. The person conducting the walk-through being in a rush
D. An opportunity for the borrower to back out of the transaction
Answer:A | A cursory walk-through prior to closing may be an indication of: | Answer:A | [
"A. Someone trying to hide something",
"B. A last-minute need to see the property before closing",
"C. The person conducting the walk-through being in a rush",
"D. An opportunity for the borrower to back out of the transaction"
] | null |
Multi-choice Question Aswering | Reverse Redlining refers to:
A. Intentionally avoiding qualified geographic areas
B. Intentionally avoiding unqualified geographic areas
C. Intentionally pursuing predatory lending in particular geographic locations
D. Intentionally pursuing predatory lending
Answer:C | Reverse Redlining refers to: | Answer:C | [
"A. Intentionally avoiding qualified geographic areas",
"B. Intentionally avoiding unqualified geographic areas",
"C. Intentionally pursuing predatory lending in particular geographic locations",
"D. Intentionally pursuing predatory lending"
] | null |
Multi-choice Question Aswering | If a HOEPA loan is originated for purposes of home improvement:
A. The proceeds may be fully disbursed to the home improvement contractor
B. The proceeds may be fully disbursed to the home improvement contractor with the customer's permission
C. The proceeds may be retained by the lender and issued to the home improvement contractor at a future date agreed upon by all interested parties
D. The proceeds may be issued to and managed by a third-party escrow company that is agreed upon by all parties
Answer:D | If a HOEPA loan is originated for purposes of home improvement: | Answer:D | [
"A. The proceeds may be fully disbursed to the home improvement contractor",
"B. The proceeds may be fully disbursed to the home improvement contractor with the customer's permission",
"C. The proceeds may be retained by the lender and issued to the home improvement contractor at a future date agreed upon by all interested parties",
"D. The proceeds may be issued to and managed by a third-party escrow company that is agreed upon by all parties"
] | null |
Multi-choice Question Aswering | The main objective of HOEPA is to prevent:
A. Charging too much
B. Pre-payment penalties
C. Predatory lending
D. Discrimination
Answer:C | The main objective of HOEPA is to prevent: | Answer:C | [
"A. Charging too much",
"B. Pre-payment penalties",
"C. Predatory lending",
"D. Discrimination"
] | null |
Multi-choice Question Aswering | If a loan originator discovers an address on a credit report that the applicant didn’t mentioned, s/he should:
A. Ignore it since it probably isn’t important
B. Have the application declined
C. Complete a SAR
D. Question the applicant about it and add it to the application if necessary
Answer:D | If a loan originator discovers an address on a credit report that the applicant didn’t mentioned, s/he should: | Answer:D | [
"A. Ignore it since it probably isn’t important",
"B. Have the application declined",
"C. Complete a SAR",
"D. Question the applicant about it and add it to the application if necessary"
] | null |
Multi-choice Question Aswering | Identifying and justifying funds appearing on an asset statement is called:
A. Syncing and sourcing
B. Sourcing and seasoning
C. Sounding and seasoning
D. Sourcing and sounding
Answer:B | Identifying and justifying funds appearing on an asset statement is called: | Answer:B | [
"A. Syncing and sourcing",
"B. Sourcing and seasoning",
"C. Sounding and seasoning",
"D. Sourcing and sounding"
] | null |
Multi-choice Question Aswering | Falsely representing a low property value to a lender is an example of:
A. Flipping
B. Appraisal fraud
C. Flopping
D. Chunking
Answer:C | Falsely representing a low property value to a lender is an example of: | Answer:C | [
"A. Flipping",
"B. Appraisal fraud",
"C. Flopping",
"D. Chunking"
] | null |
Multi-choice Question Aswering | What was one purpose of implementing a centralized system of mortgage licensing?
A. To reduce the number of industry regulators
B. To implement a centralized system for tracking mortgage professionals
C. To generate revenue for the federal government
D. To reduce and limit the number of loan originators
Answer:B | What was one purpose of implementing a centralized system of mortgage licensing? | Answer:B | [
"A. To reduce the number of industry regulators",
"B. To implement a centralized system for tracking mortgage professionals",
"C. To generate revenue for the federal government",
"D. To reduce and limit the number of loan originators"
] | null |
Multi-choice Question Aswering | The SAFE Act implements:?
A. The ceiling of standards to which mortgage professionals must adhere
B. A floor of standards to which individual states may add their own qualifications
C. Guidelines to which mortgage professionals are encouraged to adhere
D. Guidelines to which individual states may choose to enforce
Answer:B | The SAFE Act implements:? | Answer:B | [
"A. The ceiling of standards to which mortgage professionals must adhere",
"B. A floor of standards to which individual states may add their own qualifications",
"C. Guidelines to which mortgage professionals are encouraged to adhere",
"D. Guidelines to which individual states may choose to enforce"
] | null |
Multi-choice Question Aswering | What is the definition of a Mortgage Loan Originator in accordance with the SAFE Act?
A. An individual who negotiates mortgage loans
B. An individual who takes a mortgage loan application
C. An individual who takes a mortgage loan application for compensation or gain
D. An individual who profits from mortgage origination
Answer:C | What is the definition of a Mortgage Loan Originator in accordance with the SAFE Act? | Answer:C | [
"A. An individual who negotiates mortgage loans",
"B. An individual who takes a mortgage loan application",
"C. An individual who takes a mortgage loan application for compensation or gain",
"D. An individual who profits from mortgage origination"
] | null |
Multi-choice Question Aswering | Which of the following individuals would be considered a mortgage loan originator?
A. A Realtor who refers a customer to a mortgage company for home financing
B. An attorney who secures a mortgage loan for a client pursuing a divorce
C. A homeowner selling and financing his own primary residence
D. A Realtor who is compensated by a mortgage broker
Answer:D | Which of the following individuals would be considered a mortgage loan originator? | Answer:D | [
"A. A Realtor who refers a customer to a mortgage company for home financing",
"B. An attorney who secures a mortgage loan for a client pursuing a divorce",
"C. A homeowner selling and financing his own primary residence",
"D. A Realtor who is compensated by a mortgage broker"
] | null |
Multi-choice Question Aswering | Which of the following individuals would not be required to secure a mortgage originator license?
A. A mortgage loan officer who worked for a bank but transferred over to a mortgage brokerage
B. A financial planner who sells mortgages among many other financial products
C. An individual who only sells timeshare plans
D. An investor who buys over 25 properties annually, sells them, and personally arranges for their financing
Answer:C | Which of the following individuals would not be required to secure a mortgage originator license? | Answer:C | [
"A. A mortgage loan officer who worked for a bank but transferred over to a mortgage brokerage",
"B. A financial planner who sells mortgages among many other financial products",
"C. An individual who only sells timeshare plans",
"D. An investor who buys over 25 properties annually, sells them, and personally arranges for their financing"
] | null |
Multi-choice Question Aswering | Which of the following individuals requires a mortgage originator license?
A. A clerk who secures callers' names and the locations of the properties for which they desire financing and refers them to licensed loan originators
B. A clerk who completes a 1003 before referring a caller to the appropriate loan originator
C. A processor who simply processes files and does not discuss loan parameters with applicants
D. An underwriter who reviews files and renders lending decisions
Answer:B | Which of the following individuals requires a mortgage originator license? | Answer:B | [
"A. A clerk who secures callers' names and the locations of the properties for which they desire financing and refers them to licensed loan originators",
"B. A clerk who completes a 1003 before referring a caller to the appropriate loan originator",
"C. A processor who simply processes files and does not discuss loan parameters with applicants",
"D. An underwriter who reviews files and renders lending decisions"
] | null |
Multi-choice Question Aswering | Which of the following is not a part of the mortgage licensing application process?
A. Submitting fingerprints
B. Authorizing obtainment of a credit report
C. Checking professional references
D. Demonstrating fiscal responsibility
Answer:C | Which of the following is not a part of the mortgage licensing application process? | Answer:C | [
"A. Submitting fingerprints",
"B. Authorizing obtainment of a credit report",
"C. Checking professional references",
"D. Demonstrating fiscal responsibility"
] | null |
Multi-choice Question Aswering | Which of the following credit issues is ignored during the licensing review?
A. Bankruptcy within the previous three years
B. Minimally-derogative financial matters within the previous three years
C. Medical collection accounts
D. Foreclosures within the previous three years
Answer:C | Which of the following credit issues is ignored during the licensing review? | Answer:C | [
"A. Bankruptcy within the previous three years",
"B. Minimally-derogative financial matters within the previous three years",
"C. Medical collection accounts",
"D. Foreclosures within the previous three years"
] | null |
Multi-choice Question Aswering | If an individual were to have her mortgage license revoked in a particular state she:
A. Would never be able to receive a license in that state again
B. Would lose her license in all other states and not be able to secure another one
C. Would be eligible for reinstatement after five years
D. Would be unaffected in other states in which she was licensed
Answer:B | If an individual were to have her mortgage license revoked in a particular state she: | Answer:B | [
"A. Would never be able to receive a license in that state again",
"B. Would lose her license in all other states and not be able to secure another one",
"C. Would be eligible for reinstatement after five years",
"D. Would be unaffected in other states in which she was licensed"
] | null |
Multi-choice Question Aswering | Which of the following topics is not part of the standard 20-hour pre-licensing education requirement?
A. 3 hours of federal law
B. 2 hours of standards for non-traditional mortgage lending
C. 12 hours of electives
D. 3 hours of General Mortgage Knowledge
Answer:D | Which of the following topics is not part of the standard 20-hour pre-licensing education requirement? | Answer:D | [
"A. 3 hours of federal law",
"B. 2 hours of standards for non-traditional mortgage lending",
"C. 12 hours of electives",
"D. 3 hours of General Mortgage Knowledge"
] | null |
Multi-choice Question Aswering | By what date would a mortgage loan originator who fails to renew her license by December 31st have to renew it in order to avoid repeating the entire licensing process?
A. January 1st
B. February 1st
C. The last day of February
D. March 1st
Answer:C | By what date would a mortgage loan originator who fails to renew her license by December 31st have to renew it in order to avoid repeating the entire licensing process? | Answer:C | [
"A. January 1st",
"B. February 1st",
"C. The last day of February",
"D. March 1st"
] | null |
Multi-choice Question Aswering | The National Mortgage Licensing Exam, containing the UST component, consists of how many questions?
A. 100
B. 125
C. 75
D. 110
Answer:B | The National Mortgage Licensing Exam, containing the UST component, consists of how many questions? | Answer:B | [
"A. 100",
"B. 125",
"C. 75",
"D. 110"
] | null |
Multi-choice Question Aswering | How many hours of continuing education are generally needed annually for a licensed loan originator to renew his license?
A. 10
B. 20
C. 8
D. 12
Answer:C | How many hours of continuing education are generally needed annually for a licensed loan originator to renew his license? | Answer:C | [
"A. 10",
"B. 20",
"C. 8",
"D. 12"
] | null |
Multi-choice Question Aswering | What is the Model State Law?
A. A document to guide states in implementing the legislation required by the SAFE Act
B. A law to track loan originators, initially enacted by the State of Georgia, that was modeled by other states
C. A law requiring all states to participate in the NMLS&R
D. A law that states are to use when establishing disciplinary guidelines
Answer:A | What is the Model State Law? | Answer:A | [
"A. A document to guide states in implementing the legislation required by the SAFE Act",
"B. A law to track loan originators, initially enacted by the State of Georgia, that was modeled by other states",
"C. A law requiring all states to participate in the NMLS&R",
"D. A law that states are to use when establishing disciplinary guidelines"
] | null |
Multi-choice Question Aswering | What was one of the primary motivations for the creation of a UST?
A. Loan originators were complaining about having to take so many exams
B. Conducting exams for all of the states was becoming too expensive
C. The questions on state exams were often redundant
D. Loan originators were taking too long to become licensed
Answer:C | What was one of the primary motivations for the creation of a UST? | Answer:C | [
"A. Loan originators were complaining about having to take so many exams",
"B. Conducting exams for all of the states was becoming too expensive",
"C. The questions on state exams were often redundant",
"D. Loan originators were taking too long to become licensed"
] | null |
Multi-choice Question Aswering | What is one of the SAFE Act’s main objectives?
A. To protect the consumer from unscrupulous mortgage professionals
B. To limit the types of available mortgage programs
C. To generate revenue for states
D. To require lenders to consider applicants’ ability to repay
Answer:A | What is one of the SAFE Act’s main objectives? | Answer:A | [
"A. To protect the consumer from unscrupulous mortgage professionals",
"B. To limit the types of available mortgage programs",
"C. To generate revenue for states",
"D. To require lenders to consider applicants’ ability to repay"
] | null |
Multi-choice Question Aswering | How long does a mortgage license remain in effect before requiring renewal?
A. One year
B. Two years
C. Three years
D. Six months
Answer:A | How long does a mortgage license remain in effect before requiring renewal? | Answer:A | [
"A. One year",
"B. Two years",
"C. Three years",
"D. Six months"
] | null |
Multi-choice Question Aswering | Of the following choices, which contains information that is not included in the six items constituting a live application?
A. Social security number, borrower's name, appraised property value
B. Loan amount, borrower's name, property address
C. Monthly income, amount of assets, social security number
D. Social security number, property address, borrower's name
Answer:C | Of the following choices, which contains information that is not included in the six items constituting a live application? | Answer:C | [
"A. Social security number, borrower's name, appraised property value",
"B. Loan amount, borrower's name, property address",
"C. Monthly income, amount of assets, social security number",
"D. Social security number, property address, borrower's name"
] | null |
Multi-choice Question Aswering | Joan applies for a mortgage on Tuesday. By the end of what day must the Transfer of Servicing disclosure be issued?
A. Friday
B. Saturday
C. Thursday
D. None of the above
Answer:D | Joan applies for a mortgage on Tuesday. By the end of what day must the Transfer of Servicing disclosure be issued? | Answer:D | [
"A. Friday",
"B. Saturday",
"C. Thursday",
"D. None of the above"
] | null |
Multi-choice Question Aswering | An application is taken on May 1st. By May 30th the customer has not returned most of the documentation needed in order to underwrite the file. What must be issued by the end of the day?
A. An Adverse Action Notice
B. A Notice of Incomplete Application
C. A Notice of Action Taken
D. An Interest Rate Lock Extension Request
Answer:B | An application is taken on May 1st. By May 30th the customer has not returned most of the documentation needed in order to underwrite the file. What must be issued by the end of the day? | Answer:B | [
"A. An Adverse Action Notice",
"B. A Notice of Incomplete Application",
"C. A Notice of Action Taken",
"D. An Interest Rate Lock Extension Request"
] | null |
Multi-choice Question Aswering | What is the APR?
A. The cost of the credit expressed as a dollar amount
B. The cost of the credit expressed as an interest rate
C. The interest rate used to calculate the periodic payment
D. A way to determine the interest rate of an ARM
Answer:B | What is the APR? | Answer:B | [
"A. The cost of the credit expressed as a dollar amount",
"B. The cost of the credit expressed as an interest rate",
"C. The interest rate used to calculate the periodic payment",
"D. A way to determine the interest rate of an ARM"
] | null |
Multi-choice Question Aswering | Which of the following is permitted when servicing or originating a HOEPA loan?
A. Increasing the interest rate in the event of default
B. Disbursing funds directly to the contractor when the loan purpose is home improvement
C. Enforcing a pre-payment penalty
D. Originating a 3/23 balloon loan
Answer:C | Which of the following is permitted when servicing or originating a HOEPA loan? | Answer:C | [
"A. Increasing the interest rate in the event of default",
"B. Disbursing funds directly to the contractor when the loan purpose is home improvement",
"C. Enforcing a pre-payment penalty",
"D. Originating a 3/23 balloon loan"
] | null |
Multi-choice Question Aswering | Which of the following is not excluded from higher priced mortgage considerations?
A. A conventional/conforming loan on a two-family property
B. A reverse mortgage
C. An eight-month bridge loan
D. A construction loan used to build a property from scratch
Answer:A | Which of the following is not excluded from higher priced mortgage considerations? | Answer:A | [
"A. A conventional/conforming loan on a two-family property",
"B. A reverse mortgage",
"C. An eight-month bridge loan",
"D. A construction loan used to build a property from scratch"
] | null |
Multi-choice Question Aswering | Loan originators may be compensated through all but which of the following methods:
A. Trips/prizes
B. A percentage of the loan amount
C. Based off of the interest rate
D. A loan’s seasoning
Answer:C | Loan originators may be compensated through all but which of the following methods: | Answer:C | [
"A. Trips/prizes",
"B. A percentage of the loan amount",
"C. Based off of the interest rate",
"D. A loan’s seasoning"
] | null |
Multi-choice Question Aswering | Loan Officer Larry receives a call from Borrower Brandi during which they discuss many aspects of applying for a mortgage to refinance her home. Among other things, Borrower Brandi shares her income, date of birth, bank account balances, social security number, marital status, property address, years of schooling, property value, needed loan amount, and her employer’s name. After the call ends, what, if anything, must Loan Officer Larry do?
A. Proactively check in with Brandi in 31 days to see if she’s still interested in proceeding
B. Issue a Loan Estimate within three precise business days
C. Nothing - the Do Not Call Rule prohibits Larry from calling her
D. Issue a Loan Estimate within three general business days
Answer:D | Loan Officer Larry receives a call from Borrower Brandi during which they discuss many aspects of applying for a mortgage to refinance her home. Among other things, Borrower Brandi shares her income, date of birth, bank account balances, social security number, marital status, property address, years of schooling, property value, needed loan amount, and her employer’s name. After the call ends, what, if anything, must Loan Officer Larry do? | Answer:D | [
"A. Proactively check in with Brandi in 31 days to see if she’s still interested in proceeding",
"B. Issue a Loan Estimate within three precise business days",
"C. Nothing - the Do Not Call Rule prohibits Larry from calling her",
"D. Issue a Loan Estimate within three general business days"
] | null |
Multi-choice Question Aswering | Which of the following is not a consideration of HMDA?
A. Race, Income, property usage, and loan amount
B. Ethnicity, previous employer, loan disposition, and property location
C. Sex, age, property location, and loan disposition
D. Intended property usage, ethnicity, loan amount, and income
Answer:B | Which of the following is not a consideration of HMDA? | Answer:B | [
"A. Race, Income, property usage, and loan amount",
"B. Ethnicity, previous employer, loan disposition, and property location",
"C. Sex, age, property location, and loan disposition",
"D. Intended property usage, ethnicity, loan amount, and income"
] | null |
Multi-choice Question Aswering | What does CRA stand for?
A. Consumer Records Association
B. Consumer Reporting Association
C. Credit Reporting Association
D. Consumer Reporting Agency
Answer:D | What does CRA stand for? | Answer:D | [
"A. Consumer Records Association",
"B. Consumer Reporting Association",
"C. Credit Reporting Association",
"D. Consumer Reporting Agency"
] | null |
Multi-choice Question Aswering | The E-Sign Act requires that all of the individuals needed to electronically sign documentation be provided with:
A. The equipment to do so if they lack access to a computer
B. The exception to consummate transactions orally if they are unable to access electronic devices
C. The freedom to receive and sign documents in paper format
D. Recourse to rescind within the first three years on any loan utilizing electronic signatures
Answer:C | The E-Sign Act requires that all of the individuals needed to electronically sign documentation be provided with: | Answer:C | [
"A. The equipment to do so if they lack access to a computer",
"B. The exception to consummate transactions orally if they are unable to access electronic devices",
"C. The freedom to receive and sign documents in paper format",
"D. Recourse to rescind within the first three years on any loan utilizing electronic signatures"
] | null |
Multi-choice Question Aswering | FACTA affords individuals which of the following considerations?
A. A free credit report annually from all three CRAs, the protection of account number truncation on credit card receipts, and the ability to dispute discrepancies appearing on one’s credit profile
B. The right to opt out of information sharing
C. The right to know the name and address of the credit repository from which the credit report used in rendering a credit decision was ascertained
D. The right to receive a free copy of one’s credit report in the event that s/he is declined credit for credit-related reasons
Answer:A | FACTA affords individuals which of the following considerations? | Answer:A | [
"A. A free credit report annually from all three CRAs, the protection of account number truncation on credit card receipts, and the ability to dispute discrepancies appearing on one’s credit profile",
"B. The right to opt out of information sharing",
"C. The right to know the name and address of the credit repository from which the credit report used in rendering a credit decision was ascertained",
"D. The right to receive a free copy of one’s credit report in the event that s/he is declined credit for credit-related reasons"
] | null |
Multi-choice Question Aswering | A/an _________ is an individual who uses a financial institution’s products and services while a/an _________ is an individual who has a formal business relationship with that institution.
A. consumer / customer
B. customer / consumer
C. applicant / borrower
D. borrower / applicant
Answer:A | A/an _________ is an individual who uses a financial institution’s products and services while a/an _________ is an individual who has a formal business relationship with that institution. | Answer:A | [
"A. consumer / customer",
"B. customer / consumer",
"C. applicant / borrower",
"D. borrower / applicant"
] | null |
Multi-choice Question Aswering | Which of the following is not an exception to having to scrub a telephone number through the Do Not Call Registry before making an outbound call?
A. A current customer
B. A non-current customer, but someone who was a customer within the previous 24 months
C. A charitable organization
D. An individual who initiates an inquiry within the previous 90 days
Answer:B | Which of the following is not an exception to having to scrub a telephone number through the Do Not Call Registry before making an outbound call? | Answer:B | [
"A. A current customer",
"B. A non-current customer, but someone who was a customer within the previous 24 months",
"C. A charitable organization",
"D. An individual who initiates an inquiry within the previous 90 days"
] | null |
Multi-choice Question Aswering | How often must telephone numbers be scrubbed through the Do Not Call Registry in order to ensure compliance?
A. Every 10 days
B. Every six months
C. Every 31 days
D. Every month
Answer:C | How often must telephone numbers be scrubbed through the Do Not Call Registry in order to ensure compliance? | Answer:C | [
"A. Every 10 days",
"B. Every six months",
"C. Every 31 days",
"D. Every month"
] | null |
Multi-choice Question Aswering | What is the penalty for violating the Telemarketing Sales Rule?
A. Six months in prison and a fine of $40,000 per occurrence
B. Six months in prison
C. A fine of up to $43,280 per occurrence
D. One year in prison and a fine of $10,000
Answer:C | What is the penalty for violating the Telemarketing Sales Rule? | Answer:C | [
"A. Six months in prison and a fine of $40,000 per occurrence",
"B. Six months in prison",
"C. A fine of up to $43,280 per occurrence",
"D. One year in prison and a fine of $10,000"
] | null |
Multi-choice Question Aswering | Loan Officer Lenny calls Customer Cathy to attempt to get her to refinance her mortgage. Customer Cathy politely requests not to receive any further sales calls. What, if anything, must Loan Officer Lenny now do?
A. Finish the sales call and refrain from calling her back
B. Politely terminate the call and refer the request internally so that Customer Cathy’s number is added to the company’s internal do not call list
C. Politely inform Customer Cathy that, since she is a current customer, they have the right to call her
D. End the phone call and move on to the next call
Answer:B | Loan Officer Lenny calls Customer Cathy to attempt to get her to refinance her mortgage. Customer Cathy politely requests not to receive any further sales calls. What, if anything, must Loan Officer Lenny now do? | Answer:B | [
"A. Finish the sales call and refrain from calling her back",
"B. Politely terminate the call and refer the request internally so that Customer Cathy’s number is added to the company’s internal do not call list",
"C. Politely inform Customer Cathy that, since she is a current customer, they have the right to call her",
"D. End the phone call and move on to the next call"
] | null |
Multi-choice Question Aswering | At the conclusion of the application, a loan officer observes her customer becoming noticeably uneasy after reading the URLA discloser containing the FBI’s fraud warning notice. Additionally, the customer hesitates to sign the 1003 for a few moments after reading it. She finally signs it, thanks the loan officer, gets up, and hurries out of the office. What rule, if any, requires the loan officer to take further action?
A. Patriot Act
B. FCRA
C. FTC Red Flags Rule
D. The loan officer is not compelled to do anything since the applicant did not commit any obvious crime or violation
Answer:C | At the conclusion of the application, a loan officer observes her customer becoming noticeably uneasy after reading the URLA discloser containing the FBI’s fraud warning notice. Additionally, the customer hesitates to sign the 1003 for a few moments after reading it. She finally signs it, thanks the loan officer, gets up, and hurries out of the office. What rule, if any, requires the loan officer to take further action? | Answer:C | [
"A. Patriot Act",
"B. FCRA",
"C. FTC Red Flags Rule",
"D. The loan officer is not compelled to do anything since the applicant did not commit any obvious crime or violation"
] | null |
Multi-choice Question Aswering | Which of the following is a major component of the Dodd Frank Act?
A. Positively identifying one’s customer
B. Establishing the applicant’s ability to repay
C. Ensuring the proper use of the loan proceeds at closing
D. Ensuring that the customer’s interest rate is reasonable
Answer:B | Which of the following is a major component of the Dodd Frank Act? | Answer:B | [
"A. Positively identifying one’s customer",
"B. Establishing the applicant’s ability to repay",
"C. Ensuring the proper use of the loan proceeds at closing",
"D. Ensuring that the customer’s interest rate is reasonable"
] | null |
Multi-choice Question Aswering | A customer provides two months’ bank statements. The earlier of the two statements shows a $5,000 deposit that does not coincide with the applicant’s defined payment schedule. What, if anything, must the loan originator do?
A. Report the matter to his superior and ask for advice
B. Note the observation on the file’s underwriter log
C. Nothing - it’s obviously the applicant’s money and there is no reason to question it further
D. Ask the customer to provide documentation evidencing the source of the $5,000
Answer:D | A customer provides two months’ bank statements. The earlier of the two statements shows a $5,000 deposit that does not coincide with the applicant’s defined payment schedule. What, if anything, must the loan originator do? | Answer:D | [
"A. Report the matter to his superior and ask for advice",
"B. Note the observation on the file’s underwriter log",
"C. Nothing - it’s obviously the applicant’s money and there is no reason to question it further",
"D. Ask the customer to provide documentation evidencing the source of the $5,000"
] | null |
Multi-choice Question Aswering | When must a financial institution initially provide its customer with a copy of its privacy notice?
A. Any time upon request
B. At the time when a customer relationship is established and annually thereafter
C. Annually
D. Only upon request
Answer:B | When must a financial institution initially provide its customer with a copy of its privacy notice? | Answer:B | [
"A. Any time upon request",
"B. At the time when a customer relationship is established and annually thereafter",
"C. Annually",
"D. Only upon request"
] | null |
Multi-choice Question Aswering | Which of the following would not be considered public, personal information addressed through the Gramm-Leach-Bliley Act?
A. Published telephone number
B. Marriage certificate
C. Unpublished telephone number
D. Birth certificate
Answer:C | Which of the following would not be considered public, personal information addressed through the Gramm-Leach-Bliley Act? | Answer:C | [
"A. Published telephone number",
"B. Marriage certificate",
"C. Unpublished telephone number",
"D. Birth certificate"
] | null |
Multi-choice Question Aswering | A loan originator advertises that he has the lowest rates for a thousand miles. Which regulation, if any, did he violate by doing this?
A. Mortgage Acts and Practices (MAP) Rule
B. No regulation was violated
C. Truth-in-Lending Act (TILA)
D. Both a) and c).
Answer:D | A loan originator advertises that he has the lowest rates for a thousand miles. Which regulation, if any, did he violate by doing this? | Answer:D | [
"A. Mortgage Acts and Practices (MAP) Rule",
"B. No regulation was violated",
"C. Truth-in-Lending Act (TILA)",
"D. Both a) and c)."
] | null |
Multi-choice Question Aswering | The E-Sign Act:
A. Allows for the electronic delivery and consummation of financial transactions
B. Allows for the electronic delivery and consummation of financial transactions to individuals who have not refused to utilize this means
C. Allows for the electronic delivery and consummation of financial transactions to individuals who have consented to this method and have not rescinded their consent
D. Allows for the electronic delivery and consummation of financial transactions originated outside of the United States
Answer:C | The E-Sign Act: | Answer:C | [
"A. Allows for the electronic delivery and consummation of financial transactions",
"B. Allows for the electronic delivery and consummation of financial transactions to individuals who have not refused to utilize this means",
"C. Allows for the electronic delivery and consummation of financial transactions to individuals who have consented to this method and have not rescinded their consent",
"D. Allows for the electronic delivery and consummation of financial transactions originated outside of the United States"
] | null |
Multi-choice Question Aswering | The USA Patriot Act is primarily concerned with:
A. Identity theft and money laundering
B. Money laundering and terrorist financing
C. Terrorist financing and fraud
D. Both a) and c).
Answer:B | The USA Patriot Act is primarily concerned with: | Answer:B | [
"A. Identity theft and money laundering",
"B. Money laundering and terrorist financing",
"C. Terrorist financing and fraud",
"D. Both a) and c)."
] | null |
Multi-choice Question Aswering | At what equity position is MIP automatically removed?
A. MIP is never removed based on equity position
B. 80%
C. 78%
D. 22%
Answer:A | At what equity position is MIP automatically removed? | Answer:A | [
"A. MIP is never removed based on equity position",
"B. 80%",
"C. 78%",
"D. 22%"
] | null |
Multi-choice Question Aswering | What must a customer be able to demonstrate when requesting PMI be removed at 80% LTV?
A. Their 20% equity position
B. Their 20% equity position, a good payment history, and no subordinate liens
C. A good payment history
D. Their 20% equity position and being current on their loan
Answer:B | What must a customer be able to demonstrate when requesting PMI be removed at 80% LTV? | Answer:B | [
"A. Their 20% equity position",
"B. Their 20% equity position, a good payment history, and no subordinate liens",
"C. A good payment history",
"D. Their 20% equity position and being current on their loan"
] | null |
Multi-choice Question Aswering | What constitutes a good payment history in terms of PMI removal?
A. No late payments within the previous 12 months
B. No 60-day late payments within the previous 24 months and no 30-day late payments within the previous 12
C. No 60-date late payments within the previous 24 months
D. No 30-day late payments within the previous 24 months and no 60-day late payments within the previous 12
Answer:B | What constitutes a good payment history in terms of PMI removal? | Answer:B | [
"A. No late payments within the previous 12 months",
"B. No 60-day late payments within the previous 24 months and no 30-day late payments within the previous 12",
"C. No 60-date late payments within the previous 24 months",
"D. No 30-day late payments within the previous 24 months and no 60-day late payments within the previous 12"
] | null |
Multi-choice Question Aswering | PMI Is utilized:
A. On FHA loans
B. On USDA loans
C. On VA loans
D. On conventional loans
Answer:D | PMI Is utilized: | Answer:D | [
"A. On FHA loans",
"B. On USDA loans",
"C. On VA loans",
"D. On conventional loans"
] | null |
Multi-choice Question Aswering | The two types of MIP associated with FHA financing are:
A. AMIP and PMI
B. UFMIP and MIP
C. UFMIP and AMIP
D. AMIP and Financed MI
Answer:C | The two types of MIP associated with FHA financing are: | Answer:C | [
"A. AMIP and PMI",
"B. UFMIP and MIP",
"C. UFMIP and AMIP",
"D. AMIP and Financed MI"
] | null |
Multi-choice Question Aswering | A veteran may be exempt from paying the funding fee associated with her VA loan if:
A. If she has a 10% or greater disability
B. She is actively serving
C. The VA funding fee is always charged
D. If she has a 10% or greater disability that was militarily incurred
Answer:D | A veteran may be exempt from paying the funding fee associated with her VA loan if: | Answer:D | [
"A. If she has a 10% or greater disability",
"B. She is actively serving",
"C. The VA funding fee is always charged",
"D. If she has a 10% or greater disability that was militarily incurred"
] | null |
Multi-choice Question Aswering | What is the maximum LTV on USDA loans?
A. 100%
B. 0%
C. 125%
D. 102.5%
Answer:A | What is the maximum LTV on USDA loans? | Answer:A | [
"A. 100%",
"B. 0%",
"C. 125%",
"D. 102.5%"
] | null |
Multi-choice Question Aswering | In order to be eligible for VA financing, the applicant must possess a certificate of eligibility reflecting what entitlement amount?
A. $144,000
B. $548,250
C. $1,000,000
D. $36,000
Answer:D | In order to be eligible for VA financing, the applicant must possess a certificate of eligibility reflecting what entitlement amount? | Answer:D | [
"A. $144,000",
"B. $548,250",
"C. $1,000,000",
"D. $36,000"
] | null |
Multi-choice Question Aswering | Conventional/conforming DTI guidelines are:
A. 28/31
B. 29/41
C. 28/36
D. 33/41
Answer:C | Conventional/conforming DTI guidelines are: | Answer:C | [
"A. 28/31",
"B. 29/41",
"C. 28/36",
"D. 33/41"
] | null |
Multi-choice Question Aswering | A borrower has 10% to put down but desperately wishes to avoid paying a monthly PMI premium. Which of the following options would not be a way for her to avoid paying this monthly expense?
A. Piggyback financing
B. Above-par pricing
C. Financed MI
D. LPMI
Answer:B | A borrower has 10% to put down but desperately wishes to avoid paying a monthly PMI premium. Which of the following options would not be a way for her to avoid paying this monthly expense? | Answer:B | [
"A. Piggyback financing",
"B. Above-par pricing",
"C. Financed MI",
"D. LPMI"
] | null |
Multi-choice Question Aswering | Harry Homebuyer has 7% to put down. He wishes to avoid PMI by pursuing piggyback financing. The scenario for which he decided is:
A. 80/10/10
B. 13/7/80
C. 7/13/80
D. 70/23/7
Answer:D | Harry Homebuyer has 7% to put down. He wishes to avoid PMI by pursuing piggyback financing. The scenario for which he decided is: | Answer:D | [
"A. 80/10/10",
"B. 13/7/80",
"C. 7/13/80",
"D. 70/23/7"
] | null |
Multi-choice Question Aswering | Remitting principal pre-payments to an adjustable rate mortgage in addition to the regular periodic payments, affects the ________?
A. Loan term
B. Overall interest expenditure
C. Future payment amount
D. Future interest rate
Answer:C | Remitting principal pre-payments to an adjustable rate mortgage in addition to the regular periodic payments, affects the ________? | Answer:C | [
"A. Loan term",
"B. Overall interest expenditure",
"C. Future payment amount",
"D. Future interest rate"
] | null |
Multi-choice Question Aswering | Which of the following is not a loan type warned about through the Guidance on Non-Traditional Mortgage Product Risks?
A. 5/1 ARM
B. 15-year fixed, stated asset
C. No-income, no asset
D. 30-year fixed
Answer:D | Which of the following is not a loan type warned about through the Guidance on Non-Traditional Mortgage Product Risks? | Answer:D | [
"A. 5/1 ARM",
"B. 15-year fixed, stated asset",
"C. No-income, no asset",
"D. 30-year fixed"
] | null |
Multi-choice Question Aswering | With few exceptions, QMs limit a loan’s back-end DTI to:
A. 43%
B. 36%
C. 50%
D. 28%
Answer:A | With few exceptions, QMs limit a loan’s back-end DTI to: | Answer:A | [
"A. 43%",
"B. 36%",
"C. 50%",
"D. 28%"
] | null |
Multi-choice Question Aswering | All but which of the following are types of QM’s?
A. General
B. Adjustable
C. Balloon-Payment
D. Small Creditor
Answer:B | All but which of the following are types of QM’s? | Answer:B | [
"A. General",
"B. Adjustable",
"C. Balloon-Payment",
"D. Small Creditor"
] | null |
Multi-choice Question Aswering | One way to safe harbor against steering is to:
A. Offer the customer several different mortgage loan options
B. Have the customer sign a statement attesting that they were not coerced into choosing a particular product or loan program
C. Ensure that the customer receives all of any applicable above-par pricing credit
D. Provide each customer with three specific options for the loan they’re considering - one with the highest rate at the lowest cost, one at par pricing, and one with the lowest rate at the highest cost
Answer:D | One way to safe harbor against steering is to: | Answer:D | [
"A. Offer the customer several different mortgage loan options",
"B. Have the customer sign a statement attesting that they were not coerced into choosing a particular product or loan program",
"C. Ensure that the customer receives all of any applicable above-par pricing credit",
"D. Provide each customer with three specific options for the loan they’re considering - one with the highest rate at the lowest cost, one at par pricing, and one with the lowest rate at the highest cost"
] | null |
Multi-choice Question Aswering | Lucy Loan Shopper wants to secure a $250,000 loan at a 30-year fixed-rate of 3.375%. Par pricing is at 4.125%. In order to reach the rate of 3.375%, Larry Loan Supplier would have to charge Lucy one and a quarter points. How much would Lucy have to pay to secure a rate of 3.375%?
A. 1.25%
B. $1,250
C. 3.125%
D. $3,125
Answer:D | Lucy Loan Shopper wants to secure a $250,000 loan at a 30-year fixed-rate of 3.375%. Par pricing is at 4.125%. In order to reach the rate of 3.375%, Larry Loan Supplier would have to charge Lucy one and a quarter points. How much would Lucy have to pay to secure a rate of 3.375%? | Answer:D | [
"A. 1.25%",
"B. $1,250",
"C. 3.125%",
"D. $3,125"
] | null |
Multi-choice Question Aswering | Which of the following would not be a non-QM loan?
A. Back-end DTI of 50%
B. Limited doc loan
C. Back-end DTI of 43%
D. Stated asset loan
Answer:C | Which of the following would not be a non-QM loan? | Answer:C | [
"A. Back-end DTI of 50%",
"B. Limited doc loan",
"C. Back-end DTI of 43%",
"D. Stated asset loan"
] | null |
Multi-choice Question Aswering | The process by which a fixed-rate loan repays is referred to as:
A. Assimilation
B. Maturation
C. Amortization
D. Amalgamation
Answer:C | The process by which a fixed-rate loan repays is referred to as: | Answer:C | [
"A. Assimilation",
"B. Maturation",
"C. Amortization",
"D. Amalgamation"
] | null |
Multi-choice Question Aswering | The cost of originating a loan expressed as an interest rate is known as the:
A. APR
B. Index
C. Finance charge
D. CAP
Answer:A | The cost of originating a loan expressed as an interest rate is known as the: | Answer:A | [
"A. APR",
"B. Index",
"C. Finance charge",
"D. CAP"
] | null |