RMLO - SAFE EXAM QUESTIONS QUESTIONS AND
ANSWERS A+ GRADED. Buy Quality Materials!
Higher-Priced Mortgage Loans (HPML) are defined as closed-end residential
mortgage loans secured by the consumer's principal dwelling with an APR that
exceed the average prime offer rate (APOR) for comparable transactions by:
2.5 percentage points for a first lien jumbo residential mortgage loan
Under ECOA, when is a disclosure concerning the applicant's right to obtain a
copy of the appraisal report due the consumer?
Within three business days after receipt of the written application.
Under the Red Flags Rule, mortgage loan originators must develop a written
program that identifies and detects the warning signs of:
Identity Theft.
Which of the following is not a "triggering term" under Reg Z?
- Amount of the down payment
- Number of payments or period of repayment
- Annual Percentage Rate
- Amount of any payment
Annual Percentage Rate (APR)
Under the TILA, when a consumer rescinds a transaction, the security interest
giving rise to the right of the rescission becomes void and:
The consumer will no longer be liable for any amount, including any finance charge.
Which of the following would not require a new waiting period for the Closing
Disclosure?
- Unexpected discoveries on a final walk-through requiring a seller credit to the
buyer.
- The loan product changes
- The APR on the loan changes
- A prepayment penalty is added to the loan.
Unexpected discoveries on a final walk-through requiring a seller credit to the buyer.
Which of the following transactions are covered by the TILA-RESPA rule?
- Home Equity Lines of Credit
- Reverse Mortgage Loans
- Construction-only Loans
- Chattel-dwelling loans
Construction-only Loans
A transaction is a HOEPA mortgage if its points and fees exceed the following
threshold:
5% of the total loan amount for a loan amount of $21,549 or more.
Activities carried out by the HUD's Office of Fair Housing and Equal Opportunity
include implementing and enforcing the:
, Fair Housing Act
The ESign Act requires all of the following except:
- Consent of the consumer's to receive the info electronically
- A consumer must be provided with info regarding any right or option to receive
a disclosure in paper form.
- Provide any information to the consumer of their right to withdraw consent to
have records provided electronically, including any conditions, consequences, or
fees associated with doing so.
- That a signature, contract, or other record relating to any and all transactions
may not be denied legal effect solely because it is in electronic form.
That a signature, contract, or other record may not be denied legal effect solely because
it is in electronic form.
When a loan gains status as a Qualified Mortgage, it carries with it a legal
presumption of complying with the Ability to Repay requirements. The CFPB's
final rule creates two different kinds of legal presumption
Safe Harbor & Rebuttable Presumption
Which of the following is not considered one of the three main categories of a
QM?
- General QM Loans: Any loan that meets the product feature requirements with a
DTI of 43% or less is a QM.
- Temporary QM Exclusion for AUS Approval: Eligible for purchase, guarantee, or
insurance by a GSE, FHA, VA, or USDA is QM regardless of DTI
- Conforming QM Loan - Any loan that is equal to or less than the dollar amount
established by the conforming loan limit set by Fannie Mae/Freddie Mac
- Small Creditor QM Loans - Lenders less than $2B in assets and originate 500 or
less first mortgages per year.
Conforming QM Loan
The U.S. Department of Veteran Affairs does not make loans, it:
Guarantees loans made by lenders to qualified veterans
Conventional conforming guidelines specify that if the mortgage is secured by a
second home or an investment property, the borrower may own or be obligated
on up to:
Ten financed properties (including their principal residence)
Which of the following loan types indicates that the borrower is obtaining a
second mortgage and making a down payment?
- 3/1 ARM
- 30 year fixed rate with a balloon feature
- An 80-10-10 loan
- A bridge loan
An 80-10-10 loan
A borrower is a 65-year-old retiree with significant equity in his home. What
would be the best product to assist him in paying for repairs on his home?
HECM (Home Equity Conversion Mortgage)
What is the name of the automated underwriting system that evaluates mortgage
delinquency risks and arrives at an underwriting recommendation of
Approve/Eligible?
ANSWERS A+ GRADED. Buy Quality Materials!
Higher-Priced Mortgage Loans (HPML) are defined as closed-end residential
mortgage loans secured by the consumer's principal dwelling with an APR that
exceed the average prime offer rate (APOR) for comparable transactions by:
2.5 percentage points for a first lien jumbo residential mortgage loan
Under ECOA, when is a disclosure concerning the applicant's right to obtain a
copy of the appraisal report due the consumer?
Within three business days after receipt of the written application.
Under the Red Flags Rule, mortgage loan originators must develop a written
program that identifies and detects the warning signs of:
Identity Theft.
Which of the following is not a "triggering term" under Reg Z?
- Amount of the down payment
- Number of payments or period of repayment
- Annual Percentage Rate
- Amount of any payment
Annual Percentage Rate (APR)
Under the TILA, when a consumer rescinds a transaction, the security interest
giving rise to the right of the rescission becomes void and:
The consumer will no longer be liable for any amount, including any finance charge.
Which of the following would not require a new waiting period for the Closing
Disclosure?
- Unexpected discoveries on a final walk-through requiring a seller credit to the
buyer.
- The loan product changes
- The APR on the loan changes
- A prepayment penalty is added to the loan.
Unexpected discoveries on a final walk-through requiring a seller credit to the buyer.
Which of the following transactions are covered by the TILA-RESPA rule?
- Home Equity Lines of Credit
- Reverse Mortgage Loans
- Construction-only Loans
- Chattel-dwelling loans
Construction-only Loans
A transaction is a HOEPA mortgage if its points and fees exceed the following
threshold:
5% of the total loan amount for a loan amount of $21,549 or more.
Activities carried out by the HUD's Office of Fair Housing and Equal Opportunity
include implementing and enforcing the:
, Fair Housing Act
The ESign Act requires all of the following except:
- Consent of the consumer's to receive the info electronically
- A consumer must be provided with info regarding any right or option to receive
a disclosure in paper form.
- Provide any information to the consumer of their right to withdraw consent to
have records provided electronically, including any conditions, consequences, or
fees associated with doing so.
- That a signature, contract, or other record relating to any and all transactions
may not be denied legal effect solely because it is in electronic form.
That a signature, contract, or other record may not be denied legal effect solely because
it is in electronic form.
When a loan gains status as a Qualified Mortgage, it carries with it a legal
presumption of complying with the Ability to Repay requirements. The CFPB's
final rule creates two different kinds of legal presumption
Safe Harbor & Rebuttable Presumption
Which of the following is not considered one of the three main categories of a
QM?
- General QM Loans: Any loan that meets the product feature requirements with a
DTI of 43% or less is a QM.
- Temporary QM Exclusion for AUS Approval: Eligible for purchase, guarantee, or
insurance by a GSE, FHA, VA, or USDA is QM regardless of DTI
- Conforming QM Loan - Any loan that is equal to or less than the dollar amount
established by the conforming loan limit set by Fannie Mae/Freddie Mac
- Small Creditor QM Loans - Lenders less than $2B in assets and originate 500 or
less first mortgages per year.
Conforming QM Loan
The U.S. Department of Veteran Affairs does not make loans, it:
Guarantees loans made by lenders to qualified veterans
Conventional conforming guidelines specify that if the mortgage is secured by a
second home or an investment property, the borrower may own or be obligated
on up to:
Ten financed properties (including their principal residence)
Which of the following loan types indicates that the borrower is obtaining a
second mortgage and making a down payment?
- 3/1 ARM
- 30 year fixed rate with a balloon feature
- An 80-10-10 loan
- A bridge loan
An 80-10-10 loan
A borrower is a 65-year-old retiree with significant equity in his home. What
would be the best product to assist him in paying for repairs on his home?
HECM (Home Equity Conversion Mortgage)
What is the name of the automated underwriting system that evaluates mortgage
delinquency risks and arrives at an underwriting recommendation of
Approve/Eligible?
