National Mortgage

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Author:
Lisaelaine
ID:
15836
Filename:
National Mortgage
Updated:
2010-04-23 15:36:56
Tags:
Mortgage
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Description:
Test questions
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  1. A borrower obtains a 2/1 buydown on a 30 year fixed rate FHA loan. The note rate is 7%. What interest rate will they pay the first year?
    A. 5.00%
    B. 6.00%
    C. 7.00%
    D. 8.00%
    A. 5.00%
  2. A number of factors are considered when calculating the funding fee for a veteran obtaining a VA loan. Which of the following has no bearing on the calculation?
    A. Whether the veteran has used his/her entitlement in the past
    B.The veteran's marital status
    C. Whether the veteran has a service related disability
    D. The amount of the loan the veteran has applied for
    B. The veteran's marital status
  3. The funding fee on a VA loan:
    A. Is refundable if the loan is paid off within three years
    B. If not refundable if there is a loan balance after five years
    C. Is refundable if the loan is paid off within ten years
    D. Is refundable only if the veteran was overcharged
    D. Is refundable only if the veteran was overcharged
  4. Why would a borrower want to obtain an interest only loan?
    A. It may help the borrower qualify for a larger loan amount
    B. It includes negative amoritization
    C. It allows the borrower to set up a subsidy account for principle
    D. It reduces the borrower's interest rate
    • A. It may help the borrower qualify for a larger loan amount
  5. A borrower is obtaining a 30 year fixed rate FHA loan for $150,000. What is the most the origination fee can be?
    A. $750
    B. $1,500
    C. $2,250
    D. $3,000
    B. $1,500
  6. "1003" is another title for which of the following mortgage industry documents?
    A. Uniform Residential Loan application
    B. HUD-1
    C. Good faith Estimate
    D. TIL Disclosure Statement
    • A. Uniform Residential Loan application
  7. A mortgage insurance premium is mandatory:
    A. For 1 year
    B. Until loan-to-value reaches 80%
    C.Until equity reaches 22%
    D. For 5 years
    D. For 5 years
  8. Which of the following is not an acceptable method of providing federally mandated consumer protection disclosures?
    A. Posting the privacy policies in a prominent location in the office
    B. Mail
    C. Facsimile
    D. Email
    • A. Posting the privacy policies in a prominent location in the office
  9. VA loans require which of the following?
    A. Mortgage insurance premium
    B. Eligibility fee
    C. Funding fee
    D. VA appraiser premium
    C. Funding fee
  10. 5/25 and 7/23 are used to designate loans which include which of the following?
    A. A hybrid adjustable rate feature
    B. A subordinate lien
    C. A temporary interest rate buy down
    D. A balloon payment
    D. A balloon payment
  11. If a mortgage professional commits an act of fraud against a federally chartered bank, what is the statute of limitations for federal prosecution?
    A. Two years
    B. Five years
    C. Seven years
    D. Ten years
    D. Ten years
  12. Which of the following is included in section 800 of both the HUD-1 and the Good Faith Estimate?
    A. Private mortgage insurance premium
    B. Title search fee
    C. Property taxes
    D. Appraisal fee
    D. Appraisal fee
  13. The Patriot Act requires lenders and their mortgage broker agents to do all of the following except:
    A. Transmit details of loan transactions to the federal government
    B. Verify the identity of a person applying for a loan
    C. Maintain a record of any information used to verify a consumer's identity
    D. Determine whether a potential borrower appears on known terrorist lists maintained by the federal gov't
    A. Transmit details of loan transactions to the federal government

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