National and UST Mortgage Practice Exam 1 ||
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A borrower received $1,000 per C. $750
month in rental income. How much
of the income may be used to qualify Generally, 75% of rental income may be used to
the borrower for a loan? qualify a borrower for a loan. This formula is based
on an industry standard that taxes, insurance, and
A. $1,000 maintenance costs will equal about 25% of the
B. $800 income that a property generates. In this case, 75%
C. $750 x $1,000 = $750.
D. $1,250
What is Freddie Mac's automated C. Loan Product Advisor
underwriting system called?
Freddie Mac's automated underwriting system is
A. Desktop Originator called Loan Product Advisor (formerly known as
B. Underwriter Assistant Loan Prospector), while Fannie Mae's is called
C. Loan Product Advisor Desktop Underwriter.
D. AUS
,Which of the following contains only B. Car payment, boat payment, child support
items which should be used in obligations
calculating a borrower's debt-to-
income ratio? A debt-to-income ratio compares an applicant's
total monthly debt to his or her total monthly
A. Monthly rent expense on current income. Total monthly debt would include
home, credit card payment, car simultaneous loans, debt obligations, alimony, and
insurance child support. Typical living expenses (e.g., utilities,
B. Car payment, boat payment, child health and disability insurance, food, phone or
support obligations cable bills, etc.) are not included when calculating
C. Property tax payment, utility DTI.
payment, cable bill
D. Mortgage insurance payment,
average grocery costs, electric bill
Which of the following would NOT C. The company must record the IP address from
be required if a mortgage company which the documents were accessed
wishes to utilize electronic signatures
on required disclosures? Under the Electronic Signatures in Global and
National Commerce Act (the E-SIGN Act), before
A. Borrowers must be given the obtaining a consumer's consent, a financial
option to receive the disclosures in institution must provide a clear and conspicuous
paper form statement to consumers, informing them of their
B. Borrowers must be able to right or option to have the record provided or
withdraw their consent to receive the made available on paper or in a non-electronic
disclosures electronically form. The statement must also explain the
C. The company must record the IP consumer's right to withdraw consent, including
address from which the documents applicable conditions, consequences, and fees.
were accessed Consumers must also be provided with information
D. The company must disclose about the hardware and software required to allow
hardware and software requirements them to access and retain the electronic records.
to borrowers
, Under the S.A.F.E. Act, a licensed B. Making all of the licensee's records available to
loan originator's responsibilities with borrowers upon demand
regard to recordkeeping include all
of the following, except: Licensed loan originators and those required to be
licensed must make records and books available to
A. Not knowingly withholding, their state regulator and permit interviews of
removing, or destroying any books officers, principals, employees, independent
or records contractors, agents and customers. They may not
B. Making all of the licensee's knowingly withhold, abstract, remove, mutilate,
records available to borrowers upon destroy, or secrete any books, records, or other
demand information during an investigation or examination.
C. Permitting interviews of principals, Loan originators are not required to make all of
loan originators, and independent their records available to borrowers upon demand.
contractors by state regulators
D. Making records and books
available to the state regulator
Which of the following federal B. Regulation B
regulations prohibits discrimination
based on race, color, religion, sex, Regulation B implements the provisions of the
marital status, or national origin in a Equal Credit Opportunity Act (ECOA), which
credit transaction? ensures that all persons, consumers, and
businesses are given an equal chance to obtain
A. Regulation C credit by prohibiting discrimination based on
B. Regulation B criteria including race, color, religion, national
C. Regulation Z origin, sex, marital status, and age (provided the
D. Regulation G individual is of age to enter into a contract).
Latest Update 2026- Exam Questions with 100%
Verified Correct Answers | Get it A+
Save
A borrower received $1,000 per C. $750
month in rental income. How much
of the income may be used to qualify Generally, 75% of rental income may be used to
the borrower for a loan? qualify a borrower for a loan. This formula is based
on an industry standard that taxes, insurance, and
A. $1,000 maintenance costs will equal about 25% of the
B. $800 income that a property generates. In this case, 75%
C. $750 x $1,000 = $750.
D. $1,250
What is Freddie Mac's automated C. Loan Product Advisor
underwriting system called?
Freddie Mac's automated underwriting system is
A. Desktop Originator called Loan Product Advisor (formerly known as
B. Underwriter Assistant Loan Prospector), while Fannie Mae's is called
C. Loan Product Advisor Desktop Underwriter.
D. AUS
,Which of the following contains only B. Car payment, boat payment, child support
items which should be used in obligations
calculating a borrower's debt-to-
income ratio? A debt-to-income ratio compares an applicant's
total monthly debt to his or her total monthly
A. Monthly rent expense on current income. Total monthly debt would include
home, credit card payment, car simultaneous loans, debt obligations, alimony, and
insurance child support. Typical living expenses (e.g., utilities,
B. Car payment, boat payment, child health and disability insurance, food, phone or
support obligations cable bills, etc.) are not included when calculating
C. Property tax payment, utility DTI.
payment, cable bill
D. Mortgage insurance payment,
average grocery costs, electric bill
Which of the following would NOT C. The company must record the IP address from
be required if a mortgage company which the documents were accessed
wishes to utilize electronic signatures
on required disclosures? Under the Electronic Signatures in Global and
National Commerce Act (the E-SIGN Act), before
A. Borrowers must be given the obtaining a consumer's consent, a financial
option to receive the disclosures in institution must provide a clear and conspicuous
paper form statement to consumers, informing them of their
B. Borrowers must be able to right or option to have the record provided or
withdraw their consent to receive the made available on paper or in a non-electronic
disclosures electronically form. The statement must also explain the
C. The company must record the IP consumer's right to withdraw consent, including
address from which the documents applicable conditions, consequences, and fees.
were accessed Consumers must also be provided with information
D. The company must disclose about the hardware and software required to allow
hardware and software requirements them to access and retain the electronic records.
to borrowers
, Under the S.A.F.E. Act, a licensed B. Making all of the licensee's records available to
loan originator's responsibilities with borrowers upon demand
regard to recordkeeping include all
of the following, except: Licensed loan originators and those required to be
licensed must make records and books available to
A. Not knowingly withholding, their state regulator and permit interviews of
removing, or destroying any books officers, principals, employees, independent
or records contractors, agents and customers. They may not
B. Making all of the licensee's knowingly withhold, abstract, remove, mutilate,
records available to borrowers upon destroy, or secrete any books, records, or other
demand information during an investigation or examination.
C. Permitting interviews of principals, Loan originators are not required to make all of
loan originators, and independent their records available to borrowers upon demand.
contractors by state regulators
D. Making records and books
available to the state regulator
Which of the following federal B. Regulation B
regulations prohibits discrimination
based on race, color, religion, sex, Regulation B implements the provisions of the
marital status, or national origin in a Equal Credit Opportunity Act (ECOA), which
credit transaction? ensures that all persons, consumers, and
businesses are given an equal chance to obtain
A. Regulation C credit by prohibiting discrimination based on
B. Regulation B criteria including race, color, religion, national
C. Regulation Z origin, sex, marital status, and age (provided the
D. Regulation G individual is of age to enter into a contract).
