FEDERAL MORTGAGE-RELATED LAWS
EXAM 2025 QUESTIONS AND ANSWERS
The penalties for paying or accepting an illegal referral fee are:
a. Fines of up to $5,000 and up to one year in prison
b. Fines of up to $10,000 and up to one year in prison
c. Fines of up to $10,000 and up to three years in prison
d. Fines of up to $20,000 and up to one year in prison - ANS b. Fines of up to $10,000 and up
to one year in prison
Finance charges always include which of the following?
a. Mortgage broker fee
b. Title insurance charges
c. Document preparation fees
d. Credit report fee - ANS a. Mortgage broker fee
For the purposes of rescinding a loan transaction, the phrase "business days" includes every day
of the week except:
a. Saturdays and Sundays
b. Sundays
c. Federal holidays
d. Sundays and federal holidays - ANS d. Sundays and federal holidays
Copyright ©2025 THEBRIGHT ALL RIGHTS RESERVED 1
,Five siblings have ownership rights to a property. If a refinance transaction affecting the
property is subject to rescission, how many of these individuals must submit a rescission notice
in order to void the loan?
a. Any one of the five
b. All five
c. A majority of the five
d. At least two of the five - ANS a. Any one of the five
Who must receive a Notice of Right to Cancel in a refinance transaction?
a. Anyone with ownership interest in the property
b. Only parties who are signing the mortgage
c. Only parties with 51% or more ownership in the property
d. Only the primary borrower - ANS a. Anyone with ownership interest in the property
John and Jane Brown are co-owners of a property which is their principal residence and are
entering into a refinance transaction that is subject to rescission. John is provided with one
copy of the Notice of Right to Cancel, and Jane receives no disclosures. What is their deadline
for rescission?
a. Midnight on the third day following closing
b. 72 hours after closing
c. Three years after closing
d. Three business days after closing - ANS c. Three years after closing
Which of the following fees is not included on the Good Faith Estimate?
a. Loan origination fees
b. Discount points
c. Real estate taxes
d. Real estate broker fees - ANS d. Real estate broker fees
Copyright ©2025 THEBRIGHT ALL RIGHTS RESERVED 2
, The TIL Disclosure Statement for a regular loan transaction must be re-disclosed to a borrower
if:
a. The borrower rejects the APR stated on the initial TIL
b. The APR changes by more than one quarter of 1% before closing
c. The APR varies by more than one eighth of 1% before closing
d. The APR on the TIL and the GFE do not match - ANS c. The APR varies by more than one
eighth of 1% before closing
Lenders must report detailed information about loan transactions and demographic
information concerning borrowers. Which of the following laws creates that reporting
requirement?
a. HMDA
b. RESPA
c. TILA
d. Gramm-Leach-Bliley Act - ANS a. HMDA
An annual escrow analysis is used to do which of the following?
a. Report underwriting errors
b. Prevent escrow overages
c. Ensure the loan is properly amortized
d. Reduce burden on the servicer - ANS b. Prevent escrow overages
If an individual submits false information for the purposes of obtaining a federally covered loan,
he/she could face:
a. A fine of up to $1,000,000 and imprisonment
b. License suspension
c. A misdemeanor conviction
d. A reprimand and loss of commission - ANS a. A fine of up to $1,000,000 and imprisonment
Copyright ©2025 THEBRIGHT ALL RIGHTS RESERVED 3
EXAM 2025 QUESTIONS AND ANSWERS
The penalties for paying or accepting an illegal referral fee are:
a. Fines of up to $5,000 and up to one year in prison
b. Fines of up to $10,000 and up to one year in prison
c. Fines of up to $10,000 and up to three years in prison
d. Fines of up to $20,000 and up to one year in prison - ANS b. Fines of up to $10,000 and up
to one year in prison
Finance charges always include which of the following?
a. Mortgage broker fee
b. Title insurance charges
c. Document preparation fees
d. Credit report fee - ANS a. Mortgage broker fee
For the purposes of rescinding a loan transaction, the phrase "business days" includes every day
of the week except:
a. Saturdays and Sundays
b. Sundays
c. Federal holidays
d. Sundays and federal holidays - ANS d. Sundays and federal holidays
Copyright ©2025 THEBRIGHT ALL RIGHTS RESERVED 1
,Five siblings have ownership rights to a property. If a refinance transaction affecting the
property is subject to rescission, how many of these individuals must submit a rescission notice
in order to void the loan?
a. Any one of the five
b. All five
c. A majority of the five
d. At least two of the five - ANS a. Any one of the five
Who must receive a Notice of Right to Cancel in a refinance transaction?
a. Anyone with ownership interest in the property
b. Only parties who are signing the mortgage
c. Only parties with 51% or more ownership in the property
d. Only the primary borrower - ANS a. Anyone with ownership interest in the property
John and Jane Brown are co-owners of a property which is their principal residence and are
entering into a refinance transaction that is subject to rescission. John is provided with one
copy of the Notice of Right to Cancel, and Jane receives no disclosures. What is their deadline
for rescission?
a. Midnight on the third day following closing
b. 72 hours after closing
c. Three years after closing
d. Three business days after closing - ANS c. Three years after closing
Which of the following fees is not included on the Good Faith Estimate?
a. Loan origination fees
b. Discount points
c. Real estate taxes
d. Real estate broker fees - ANS d. Real estate broker fees
Copyright ©2025 THEBRIGHT ALL RIGHTS RESERVED 2
, The TIL Disclosure Statement for a regular loan transaction must be re-disclosed to a borrower
if:
a. The borrower rejects the APR stated on the initial TIL
b. The APR changes by more than one quarter of 1% before closing
c. The APR varies by more than one eighth of 1% before closing
d. The APR on the TIL and the GFE do not match - ANS c. The APR varies by more than one
eighth of 1% before closing
Lenders must report detailed information about loan transactions and demographic
information concerning borrowers. Which of the following laws creates that reporting
requirement?
a. HMDA
b. RESPA
c. TILA
d. Gramm-Leach-Bliley Act - ANS a. HMDA
An annual escrow analysis is used to do which of the following?
a. Report underwriting errors
b. Prevent escrow overages
c. Ensure the loan is properly amortized
d. Reduce burden on the servicer - ANS b. Prevent escrow overages
If an individual submits false information for the purposes of obtaining a federally covered loan,
he/she could face:
a. A fine of up to $1,000,000 and imprisonment
b. License suspension
c. A misdemeanor conviction
d. A reprimand and loss of commission - ANS a. A fine of up to $1,000,000 and imprisonment
Copyright ©2025 THEBRIGHT ALL RIGHTS RESERVED 3
