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cduvall
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Generally speaking, a borrower who gets an FHA loan is expected to make the property his or her primary residence for at least
12 months
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The loan amount (principal) is $50,000 and the annual interest paid is $5,500. What is the annual interest rate?
11%
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The maximum amount guaranteed for a VA loan
varies by the amount of entitlement an eligible veteran has.
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To determine net worth, subtract ________ from ________ .
liabilities from total assets
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What is the primary purpose of a VA Streamline loan?
allow veterans to refinance a mortgage at more favorable terms
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Chapter ____ bankruptcy is also known as a liquidation proceeding.
7
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Which fee is a mortgage loan originator forbidden from collecting?
fee for preparing a GFE
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Under which federal legislation does the consumer have the right to receive a copy of the appraisal report on a dwelling that is to be used as collateral for a loan?
ECOA
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Which fee shown on a Good Faith Estimate allows a 10% tolerance when compared to the actual settlement charge?
Government recording charges
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Rural Development loans are available in
Small towns up to 20,000 people.
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are 401k loans included in the debt ratio?
No
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an interest in real property created upon the execution of a valid land contract
equitable title
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A closing agent is responsible for all of these tasks EXCEPT
issuing the final loan approval
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When looking at the Closing Disclosure, which of these charges could show a change from the Loan Estimate by more than 10%?
homeowners insurance
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Which characteristic distinguishes an FHA-insured loan from a conventional loan?
FHA loan cannot contain a prepayment penalty.
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When a payoff occurs any day other than the 1st,
interest must be paid through the end of the 1st of the following month.
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True or false? The association fees must always be disclosed on the application as a monthly obligation in order for the debt ratios to be calculated properly.
True
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At what point does working with a prospect change from an inquiry to an application?
once the borrower submits the required information in anticipation of a credit decision.
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If an appraiser discovers damage to the property that lowers its value, and it is necessary to make the repairs prior to selling the house for the listed value, the appraiser identifies the problems with the amount it would cost to repair the property. This is called
cost to cure
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Ellen calls to ask what an interest only payment would be with a loan amount of $575,000, an interest rate of 8.625% for 30 years. What payment would you give her?
To find the interest payment, multiply the loan amount by the rate to find the annual interest, then divide by 12 to find the monthly interest amount: 575,000 x .08625 / 12 = 4132.81
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A closing that takes place in advance of the time that the actual transaction is completed is known as a(n)
escrow closing
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The loan estimate must include the address of the property. If the address is unavailable:
Use a description of the location of the property
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On the Loan Estimate, broker fees and lender fees must be
lumped together.
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An MLO is considered to have an affiliated business relationship with a title company to whom it refers business if it has an ownership interest of more than
1%
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Which act transferred responsibility for rulemaking and enforcement of identity theft red flag rules to the SEC and CFTC for the entities they regulate?
Dodd-Frank Act
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When the lender loans money to a borrower and the borrower gives the lender a mortgage, this is referred to as a
primary mortgage market.
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Interest rates charged by the Federal Reserve for loans to member banks are called the
discount rate
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The main criterias for a borrower being approved for an FHA loan are
- Amount of income
- Credit history
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The document that creates a lien against real property as security for promise to repay a loan is called a
mortgage
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At closing, who issues a clear to close?
lender
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Mary Ann, a paralegal, works for JW Elliot Processing Corp on a part-time basis collecting documents, performing verifications, and verifying information provided by borrowers for mortgage loans. She does not have her NMLS license. Is she doing anything wrong?
No, she does not need to be licensed to work for a loan processing company.
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Which mortgage broker's act is a violation?
- Dorian collects a rate lock-in fee from a client payable to the broker
- Brokers can't get rate lock fee's except on behalf of someone else like a lender
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What is NOT a penalty that the state regulatory authority may impose on a licensee who violates state law?
imprisonment
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Which federal legislation requires that the borrower have the right to receive a copy of his or her credit report, without charge, annually?
FCRA
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