SAFE MORTGAGE LOAN ORIGINATOR TEST NEWEST ACTUAL
EXAM WITH COMPLETE QUESTIONS AND ANSWERS/
VERIFIED//GRADED A+//
second mortgage
-All money upfront
-no escrow as long as first mortgage is paying it
Subordination Clause
A contract clause that puts a mortgage in the first lien position
over an earlier recorded mortgage
Denial Of License
-any non-financial felony in the past 7 years
-financial felony ever
-financial misdemeanor (state decides)
-License has been revoked in another state
-default on a federal student loan
Income
-Need to years history and 3 more years expected income
Page 1 of 24
,-do not include sporadic overtime and bonuses
-likelihood of continued income
TILA - Respa Integrated Disclosure
-TRID
-LE must be disclosed within 3 business days
-cannot require documentation from borrower without "intent
to proceed"
-Appraisal is considered 0% tolerance
Do Not Call
-$16,000 fine
-Area code report cant be over 30 days old
-allowed to call closed, declined and cancelled loans 18
months after the fact
-can call 90 days after inquiry or pre-qual
-someone says do not call - cant call, email, fax anything
-call between 8-9
Prequalification
an estimate of the loan amt. for which the buyer can qualify
based on his income/credit under the lenders standards
Page 2 of 24
, USDA ratio
29/41
FHA ratio
31/43
Asset based loan
-loans based on borrowers equity
-bad when lenders fail to consider ability to repay
High Cost Loan
Reg Z - Sec. 1026.32
-APR will exceed by more than 6.5% for first lien loans or by
more than 8.5% for subordinate
-APOR - average prime offer rate
1. 5%
2. 6.5%
3. 8.5%
RESPA - Section 8
Page 3 of 24
EXAM WITH COMPLETE QUESTIONS AND ANSWERS/
VERIFIED//GRADED A+//
second mortgage
-All money upfront
-no escrow as long as first mortgage is paying it
Subordination Clause
A contract clause that puts a mortgage in the first lien position
over an earlier recorded mortgage
Denial Of License
-any non-financial felony in the past 7 years
-financial felony ever
-financial misdemeanor (state decides)
-License has been revoked in another state
-default on a federal student loan
Income
-Need to years history and 3 more years expected income
Page 1 of 24
,-do not include sporadic overtime and bonuses
-likelihood of continued income
TILA - Respa Integrated Disclosure
-TRID
-LE must be disclosed within 3 business days
-cannot require documentation from borrower without "intent
to proceed"
-Appraisal is considered 0% tolerance
Do Not Call
-$16,000 fine
-Area code report cant be over 30 days old
-allowed to call closed, declined and cancelled loans 18
months after the fact
-can call 90 days after inquiry or pre-qual
-someone says do not call - cant call, email, fax anything
-call between 8-9
Prequalification
an estimate of the loan amt. for which the buyer can qualify
based on his income/credit under the lenders standards
Page 2 of 24
, USDA ratio
29/41
FHA ratio
31/43
Asset based loan
-loans based on borrowers equity
-bad when lenders fail to consider ability to repay
High Cost Loan
Reg Z - Sec. 1026.32
-APR will exceed by more than 6.5% for first lien loans or by
more than 8.5% for subordinate
-APOR - average prime offer rate
1. 5%
2. 6.5%
3. 8.5%
RESPA - Section 8
Page 3 of 24
