CASE STUDY MORTGAGE APPROVAL TIME
MAT 510 WEEK 8 PREMIUM PRESENTATION
MATERIALS DISTINCTION LEVEL 2026
◉ Flipping. Answer: All of the following would be common activities in
fraud for housing, except:
A. Flipping
B. Asset fraud
C. Income and employment fraud
D. Silent second
◉ Seventh. Answer: In a mortgage transaction subject to RESPA that is
secured by the consumer's dwelling, a Loan Estimate must be delivered
or mailed within three business days after receipt of a written application
and no later than:
The________________ business day before the transaction is
consummated, and not the date the transaction is consummated
◉ warranty deed. Answer: A ________________ conveys full
ownership of land, and is commonly used in purchase and sales
transactions of real estate. In addition to conveying property ownership,
it contains the promise of clear title, meaning the property is free of
encumbrances.
,◉ APR. Answer: The lender has no obligation to re-disclose if
the___________ is considered accurate if it is not more than one eighth
of one percentage point (.125%) above or below the___________
determined in accordance with legal requirements, or if it is not more
than one quarter of one percentage point (.25%) above or below the
__________for an irregular transaction.
◉ B. 6%. Answer: A borrower obtains a one-year ARM which starts at
4.0% and has a margin of 3.0% and 2/6 caps. At the end of the first year,
the index is 5.0%. What is the interest rate after the first adjustment?
A. 7%
B. 6%
C. 8%
D. 9%
◉ Ethics. Answer: Provides a guideline for answering questions when a
choice of actions is available
◉ D. FHA. Answer: Which of the following types of mortgages
typically carries two different types of mortgage insurance?
A. VA
B. Conventional
C. Subprime
D. FHA
, ◉ mortgage loan originator. Answer: The S.A.F.E. Act defines a
___________________________ as an individual who takes residential
mortgage loan applications, or offers or negotiates terms of residential
mortgage loans for compensation or gain.
◉ lender's title insurance policy. Answer: A
__________________________ insures the lender or mortgagee against
loss caused by a borrower's invalid title or loss of priority of the
mortgage or deed of trust, due to legal claims based on undisclosed
encumbrances.
◉ Gramm-Leach-Bliley Act's Safeguards Rule. Answer: The
________________________________________ requires all financial
institutions to design, implement, and maintain safeguards to ensure the
security and confidentiality of customer information and protect
customer information against unauthorized access.
◉ A. Unethical, and a violation of federal law. Answer: For a mortgage
licensee, paying compensation for referrals is:
A. Unethical, and a violation of federal law
B. Neither unethical nor illegal
C. Unethical, but not illegal
D. Unethical, and may be prohibited in some states, but not a violation
of federal law
MAT 510 WEEK 8 PREMIUM PRESENTATION
MATERIALS DISTINCTION LEVEL 2026
◉ Flipping. Answer: All of the following would be common activities in
fraud for housing, except:
A. Flipping
B. Asset fraud
C. Income and employment fraud
D. Silent second
◉ Seventh. Answer: In a mortgage transaction subject to RESPA that is
secured by the consumer's dwelling, a Loan Estimate must be delivered
or mailed within three business days after receipt of a written application
and no later than:
The________________ business day before the transaction is
consummated, and not the date the transaction is consummated
◉ warranty deed. Answer: A ________________ conveys full
ownership of land, and is commonly used in purchase and sales
transactions of real estate. In addition to conveying property ownership,
it contains the promise of clear title, meaning the property is free of
encumbrances.
,◉ APR. Answer: The lender has no obligation to re-disclose if
the___________ is considered accurate if it is not more than one eighth
of one percentage point (.125%) above or below the___________
determined in accordance with legal requirements, or if it is not more
than one quarter of one percentage point (.25%) above or below the
__________for an irregular transaction.
◉ B. 6%. Answer: A borrower obtains a one-year ARM which starts at
4.0% and has a margin of 3.0% and 2/6 caps. At the end of the first year,
the index is 5.0%. What is the interest rate after the first adjustment?
A. 7%
B. 6%
C. 8%
D. 9%
◉ Ethics. Answer: Provides a guideline for answering questions when a
choice of actions is available
◉ D. FHA. Answer: Which of the following types of mortgages
typically carries two different types of mortgage insurance?
A. VA
B. Conventional
C. Subprime
D. FHA
, ◉ mortgage loan originator. Answer: The S.A.F.E. Act defines a
___________________________ as an individual who takes residential
mortgage loan applications, or offers or negotiates terms of residential
mortgage loans for compensation or gain.
◉ lender's title insurance policy. Answer: A
__________________________ insures the lender or mortgagee against
loss caused by a borrower's invalid title or loss of priority of the
mortgage or deed of trust, due to legal claims based on undisclosed
encumbrances.
◉ Gramm-Leach-Bliley Act's Safeguards Rule. Answer: The
________________________________________ requires all financial
institutions to design, implement, and maintain safeguards to ensure the
security and confidentiality of customer information and protect
customer information against unauthorized access.
◉ A. Unethical, and a violation of federal law. Answer: For a mortgage
licensee, paying compensation for referrals is:
A. Unethical, and a violation of federal law
B. Neither unethical nor illegal
C. Unethical, but not illegal
D. Unethical, and may be prohibited in some states, but not a violation
of federal law
