The borrower right to rescind the loan is disclosed in the:
If the annual percentage rate (APR) of a loan changes more than .250 of 1% from the original disclosure on an (ARM) transaction, which of the following would be applicable?
The Borrower is entitled to the disclosure of the costs of a mortgage loan through the Loan Estimate:
The Truth in Lending Act protects the borrower by:
Regulation Z is another name for:
The Truth in Lending Act is also a part of the:
A refinance loan closes and funds. The lender forgot to tell the borrowers about the right of rescission. How long do the borrowers have to rescind the loan?
A mortgage lender gave the borrower the final Closing Disclosure which understated the APR by 50 basis points. What should be done?
Under the Truth in Lending Act, which of the following is NOT a requirement?
Which of the following would NOT appear on Page 5 of the Closing Disclosure?
Which of the following is NOT calculated into the APR?
The APR includes all fees that are required in order to get the loan. Not included is:
All of the following Acts are part of Reg Z except:
In an effort to become an informed borrower, each borrower should receive from the lender all of the following EXCEPT:
The Fair Credit Reporting Act covers all of the following EXCEPT:
ECOA is also a part of what Reg.:
TILA would not apply to which of the following:
The federal act that requires lenders to disclose mortgage loan information, by geographic area is:
Under the Fair Housing Act, which of the following is NOT one of the protected classes:
“Seller Concessions,” as relates to the mortgage business are:
Which of the following is a protected class under the Fair Housing Act?
If a loan originator is in a face-to-face loan application with the applicant, and the applicant does not wish to answer the questions in Section 10 on the 1003, the loan officer must:
Who of the following would be an appropriate person to discuss the borrower's credit?
The responsibility of financial institutions to meet both the deposit and credit needs of the community, including the needs of low-income families, is called?
According to Regulation B, which of the following is not recommended?
The Homeowners Protection Act of 1998 does which of the following?
The Privacy Act allows a lender to do which of the following?
A borrower applies for a loan. After pulling the borrower's credit, the loan is denied. Which of the following must occur under RESPA?
If a borrower is denied financing based on an incomplete application, which of the following can be done?
A borrower wants to purchase a 2nd home and tells you that they intend to rent the property out when they are not living in it. You have reviewed their financial information and realize that the borrower would qualify for financing if the property is classified as a 2nd residence. However, if the property is classified as an investment property, the borrower is unlikely to qualify. What should you do?
A potential client is shopping around for a competitive rate and a 15-day lead time to close. The brokerage you work for offers highly competitive rates, has an average lead to close time of 30 days, and a fast lead to close time of 21 days. Understanding these figures, you tell the client you can meet their demands and secure their business. This action is:
Considering the legislation of the Secure and Fair Enforcement Act (S.A.F.E. Act) of 2008, originating a loan for a family member or other blood relation is considered:
You are working on a file referred to you by a realtor. The realtor calls you to see if there is going to be any problem getting the customer qualified. The realtor wants to know what the borrower's credit scores are before presenting the offer. The most appropriate course of action is to:
You are working with a customer who has disclosed they have new payment obligations that do not appear on their credit report. You realize that your customer qualifies for a loan based on figures calculated using only payment obligations reported on their credit. In order to ensure your client qualifies, you decide to exclude the payment obligations that do not appear on the credit report. This action is:
You have a customer who has been approved by the lender and is ready to close. The customer backs out at the last minute because of a recent interest rate drop and opts to go with a different loan officer. You paid for the appraisal and want to invoice the customer and be reimbursed. This course of action would be considered:
You have been working with a client for the past six months who has finally been approved by the lender and is ready to close. Two days before closing, interest rates drop and you explain to your customer that you are unable to go with a different lender at the better rate because of the standing commitment to the current lender. You also inform your client that breaking a rate with a lender is very damaging to the broker-lender relationship. After explaining the situation, your client still chooses to back out of the loan and go with a different loan officer. Your client's action in this situation is:
You have completed the necessary Pre-licensure education, testing, and application requirements to obtain your mortgage license. You have been hired by a brokerage and expect your background check to clear shortly. You have a friend who is eager to proceed with a loan application and your manager at the brokerage has said that you can start the file under his/her name, then switch it back to your name once your license arrives. This action is:
On a Uniform Residential Loan Application: You initially disclose a rate of 5% to the customer but are floating the rate. Over the next few days, rates improve and you have the option to lock the customer in at a rate of 4.75% and earn the same compensation. This behavior would be considered:
You interview a customer and collect all the information needed to fill out the 1003 and run credit. Before running credit, you specifically ask the client if it is okay to run their credit, and they consent. You should now:
You just closed a loan with a customer and would like to take them out to dinner to celebrate their new home purchase. Midway through the meal, you realize paying for your clients' meals may be considered a violation of RESPA. You should:
You pull credit on a husband and wife. It turns out their debt-to-income ratio is too high. You notice the majority of the debts belong to the husband. You also note that the wife has enough income to qualify on her own. You remove the husband from the loan, submit the file, and receive approval. This action is:
Your borrower has a joint-asset account with another person. Most of the money in the account belongs to the non-borrower. The lender requires two months of bank statements. Under this circumstance, the documentation needed by the lender requires you to:
Your customer calls you in the morning and tells you to lock the interest rate at the 5.5% you initially disclosed. You commit to lock the rate, but your day becomes busy and you aren't able to lock it until later in the day. When you go to lock the rate, you notice that the pricing has changed since this morning and the rate of 5.5% is now going to cost an additional $500.00. What is the most appropriate course of action?
A history showing the title changes regarding a property is required by an underwriter for what purpose?
A transaction where the buyers have signed a contract to purchase real property, but have the intention of immediately selling it to another buyer is called:
Early default can be an indicator of:
If fraud is discovered by the servicer, what is LEAST likely to occur?
Reporting of suspected loan fraud should be done at this level of government:
When fraud on the part of the borrower is found in a loan file, which of the following is likely to occur?
When is a loan officer authorized to refuse to accept a loan application?
