final quiz

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final quiz
2010-06-03 21:36:23
federal law quiz

federal law quiz
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  1. The document spells out that the borrower must repay the loan is called?
    1. mortgage
    3. promissory note
    4. contract
    promissory note
  2. A contract by which real property is pledged and allows for its transfer in the event of default is a
    1. mortgage
    2. binder
    3. note
    4. contract
    1. mortgage
  3. The stage of the loan cycle where you verify the borrower's income
    1. pre-approval
    2. underwriting
    3. conditioning
    4. processing
  4. An independent specialist who uses competing lender's funds to originate loans is called a
    1. mortgage banker
    2. wholesaler
    3. mortgage broker
    4. loan originator
    mortgage broker
  5. The residential mortgage where the whole loan is guaranteed by the federal government is a
    1. VA loan
    2. FHA loan
    3. community housing loan
    4. affordable housing loan
    VA loan
  6. A home's title can be held by a married couple as
    1. individual
    2. tenancy by entirety
    3. married
    4. joint survivor
    tenancy by entirety
  7. Fannie mae and Freddie Mac are
    1. owned and operated by the federal government
    2. major secondary market investors
    3. government sponsored enterprises
    4. all of the above
    all of the above
  8. The cycle of the loan where approval takes place is
    1. funding
    2. originating
    3. processing
    4. underwriting
  9. The loan officer need not be concerned with
    1. movement of the bond market
    2. the local real estate market
    3. secretary of States Regulation B
    4. interest rate
    secretary of States Regulation B
  10. When disclosing the Good Faith Estimate the loan officer is
    1. satisfying a RESPA requirement
    2. disclosing what you want from the borrower
    3. duplicating the pre-approval disclosure
    4. mandating the borrower's commitment
    satisfying a RESPA requirement
  11. Ulimately, the appraisal is paid for by
    1. the lender
    2. wholesaler
    3. Fannie Mae & Freddie Mac
    4. the borrower
    the borrower
  12. The agreement signed by the buyer and seller that spells out the conditions of sale is commonly referred to as the
    2. offer to purchase
    3. purchase agreement
    4. all of the above
    all of the above
  13. An item never found on a credit report is
    a. date of birth
    b. race
    c. social security number
    d. home address
  14. Fees paid to attornys, appraisers, pet inspectors, etc are disclosed at closing on the
    a. note
    b. truth in lending statement
    c. the funding fees disclosure
    d. HUD settlement statement
  15. The Truth in Lending Act is interpreted by
    A. Consumer Coalition for the Truth in Lending
    B. the Federal Reserve and called Reg Z
    C. the department of HUD in 1968
    D. Congress to further the goal of home ownership
    B. the Federal Reserve and called Reg Z
    (this multiple choice question has been scrambled)
  16. The Truth in Lending Act was designed to disclose the
    a. total cost of fees and points
    b. cost of credit
    c. lending patterns of banks
    d. brokers' yield spread premium
    cost of credit
  17. RESPA limits the
    A. amount a lender can hold in escrow
    B. amount you can charge on a 3rd party fee
    C. number of times you can re-disclose your rate
    D. number of days you have to decline a loan
    A. amount a lender can hold in escrow
    (this multiple choice question has been scrambled)
  18. A loan officer can work for more than one broker when
    A. doing a 1st mortgage and a 2nd mortgage
    B. never
    C. their primary broker doesn't have the right loan
    D. leaving one broker and going to another
    B. never
    (this multiple choice question has been scrambled)
  19. when selling a home, the law that prohibits discrimination in whom the house is sold to is
    A. FCRA
    B. RESPA
    C. FHA
    D. TILA
    C. FHA
    (this multiple choice question has been scrambled)
  20. The instrument that gives "teeth" to the Note is the
    a. 1003
    b. deed of trust
    c. fiduciary hold harmless
    d. mortgage
    deed of trust
  21. The legal document that officially states payment, rate and terms of repayment is the
    a. mortgage
    d. deed of trust
    c. debt ratio disclosure
    d. promissory note
    promissory note
  22. The number of loans a private seller and note holder can make without being licensed is
    a. five
    b. fifteen
    c. three
    d. seven
  23. The law that prohibits a loan officer from discouraging anyone from applying for a loan is
    a. FCRA
    b. MLA
    c. RESPA
    d. ECOA