Mortgage Loan Originator Safe Exam
Prep | 100% Correct Answers | Verified |
Latest 2024 Version
An application for a mortgage loan has been denied and, as required by Regulation B, an Adverse Action
Notice has been delivered to the applicant. Which of the following is not included on the Adverse Action
Notice?
a. Disclosure of the applicant's credit score
b. Statement of reasons for credit denial
c. The right to dispute the credit denial
d. Disclosure of use of information obtained from an outside source - ✔✔The right to dispute the credit
denial
Under the Home Ownership Equity Protection act which loan would be identified as a highcost
mortgage?
a. A $20,000 loan with $1,000 in fees.
b. A $95,000 loan with $6,175 in fees.
c. A $200,000 loan with $8,000 in fees.
d. A $300,000 loan with $9,000 in fees. - ✔✔A $95,000 loan with $6,175 in fees.
Which of the following in not considered a "prohibited bases" under Regulation B?
a. Race
b. Age
c. Gender
d. Religion - ✔✔Gender
The Home Mortgage Disclosure Act requires lenders to ask applicants and borrowers for information
regarding their ethnicity, race, and sex even when applications are made entirely by
telephone, mail, or the Internet. If an applicant submitting his or her application in person
fails to provide the information, the lender must note the information from an applicant's
,a. Birth certificate
b. Accent and voice patterns
c. Appearance and surname
d. Valid driver license - ✔✔Appearance and surname
What law requires mortgage loan originators to implement a written identity theft prevention
program to detect the warning signs of identity theft?
a. Fair and Accurate Credit Transaction Act of 2003
b. Fair Credit Reporting Act
c. USA Patriot Act
d. Red Flag Act of 2003 - ✔✔Fair and Accurate Credit Transaction Act of 2003
Assume a refinance closing is set for Thursday and that all material disclosures and notices are
provided to the parties at that time. What is the first day this refinance loan could fund?
a. Friday
b. Saturday
c. Monday
d. Tuesday - ✔✔Tuesday
RESPA places restrictions on lender's requirements for tax and insurance escrow accounts. In
addition, the servicer may add an amount to maintain a cushion no greater than
a. 1/3rd of the estimated total annual payments from the account.
b. 1/4th of the estimated total annual payments from the account.
c. 1/6th of the estimated total annual payments from the account.
d. 1/12th of the estimated total annual payments from the account. - ✔✔1/6th of the estimated total
annual payments from the account
Mortgage originators must provide the borrower with a copy of the Loan Estimate no later
than
, a. Three business days after the application is received.
b. Three business prior to settlement closing.
c. Three business days after a borrower's request.
d. At the time of application. - ✔✔Three business days after the application is received
Mortgage loan originators who make cold calls must comply with the requirements of the National Do-
Not-Call registry and the Do-Not-Call rules. The loan originator needs to update
any download of the registry at least every
a. 7 days
b. 15 days
c. 31 days
d. 60 days - ✔✔31 days
The Consumer Financial Protection Bureau was created under Title X of
a. Secure and Fair Enforcement for Mortgage Licensing Act
b. Consumer Credit Protection Act.
c. Homeowners' Protection Act.
d. Dodd-Frank Wall Street Reform and Consumer Protection Act. - ✔✔Dodd-Frank Wall Street Reform
and Consumer Protection Act
What is the name of a closed-end, first lien, consumer credit transaction secured by the consumer's
principal dwelling with an annual percentage rate that exceeds the average prime offer rate
by 1.5 or more percentage points?
a. Home Ownership Equity Protection loan
b. High-Cost loan
c. Higher-Priced loan
d. Non-Conforming loan - ✔✔Higher-Priced loan
In order to meet the standards established in the Patriot Act an acceptable Customer Identification
Program must include all of the following procedures except
Prep | 100% Correct Answers | Verified |
Latest 2024 Version
An application for a mortgage loan has been denied and, as required by Regulation B, an Adverse Action
Notice has been delivered to the applicant. Which of the following is not included on the Adverse Action
Notice?
a. Disclosure of the applicant's credit score
b. Statement of reasons for credit denial
c. The right to dispute the credit denial
d. Disclosure of use of information obtained from an outside source - ✔✔The right to dispute the credit
denial
Under the Home Ownership Equity Protection act which loan would be identified as a highcost
mortgage?
a. A $20,000 loan with $1,000 in fees.
b. A $95,000 loan with $6,175 in fees.
c. A $200,000 loan with $8,000 in fees.
d. A $300,000 loan with $9,000 in fees. - ✔✔A $95,000 loan with $6,175 in fees.
Which of the following in not considered a "prohibited bases" under Regulation B?
a. Race
b. Age
c. Gender
d. Religion - ✔✔Gender
The Home Mortgage Disclosure Act requires lenders to ask applicants and borrowers for information
regarding their ethnicity, race, and sex even when applications are made entirely by
telephone, mail, or the Internet. If an applicant submitting his or her application in person
fails to provide the information, the lender must note the information from an applicant's
,a. Birth certificate
b. Accent and voice patterns
c. Appearance and surname
d. Valid driver license - ✔✔Appearance and surname
What law requires mortgage loan originators to implement a written identity theft prevention
program to detect the warning signs of identity theft?
a. Fair and Accurate Credit Transaction Act of 2003
b. Fair Credit Reporting Act
c. USA Patriot Act
d. Red Flag Act of 2003 - ✔✔Fair and Accurate Credit Transaction Act of 2003
Assume a refinance closing is set for Thursday and that all material disclosures and notices are
provided to the parties at that time. What is the first day this refinance loan could fund?
a. Friday
b. Saturday
c. Monday
d. Tuesday - ✔✔Tuesday
RESPA places restrictions on lender's requirements for tax and insurance escrow accounts. In
addition, the servicer may add an amount to maintain a cushion no greater than
a. 1/3rd of the estimated total annual payments from the account.
b. 1/4th of the estimated total annual payments from the account.
c. 1/6th of the estimated total annual payments from the account.
d. 1/12th of the estimated total annual payments from the account. - ✔✔1/6th of the estimated total
annual payments from the account
Mortgage originators must provide the borrower with a copy of the Loan Estimate no later
than
, a. Three business days after the application is received.
b. Three business prior to settlement closing.
c. Three business days after a borrower's request.
d. At the time of application. - ✔✔Three business days after the application is received
Mortgage loan originators who make cold calls must comply with the requirements of the National Do-
Not-Call registry and the Do-Not-Call rules. The loan originator needs to update
any download of the registry at least every
a. 7 days
b. 15 days
c. 31 days
d. 60 days - ✔✔31 days
The Consumer Financial Protection Bureau was created under Title X of
a. Secure and Fair Enforcement for Mortgage Licensing Act
b. Consumer Credit Protection Act.
c. Homeowners' Protection Act.
d. Dodd-Frank Wall Street Reform and Consumer Protection Act. - ✔✔Dodd-Frank Wall Street Reform
and Consumer Protection Act
What is the name of a closed-end, first lien, consumer credit transaction secured by the consumer's
principal dwelling with an annual percentage rate that exceeds the average prime offer rate
by 1.5 or more percentage points?
a. Home Ownership Equity Protection loan
b. High-Cost loan
c. Higher-Priced loan
d. Non-Conforming loan - ✔✔Higher-Priced loan
In order to meet the standards established in the Patriot Act an acceptable Customer Identification
Program must include all of the following procedures except
