National and UST Mortgage Practice
Exam 4 Questions and Answers Graded
A+
The administrative authority of the Commissioner includes all but which of the
following?
Promulgate rules or regulations implementing the S.A.F.E. Act
Administer, interpret, and enforce the S.A.F.E. Act
Carry out the intentions of the Legislature
Sentencing violators of the S.A.F.E. Act to appropriate prison terms - Correct
answer-The answer is sentencing violators of the S.A.F.E. Act to appropriate prison
terms. State regulators, such as a Commissioner, are not responsible for
determining criminal sentences for violators of the S.A.F.E. Act.
Which of the following forms of compensation is a violation of RESPA?
A fee paid by a title company to an originator for referral of settlement services
Borrower credit
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Money earned by a title company for closing a loan
Broker fee - Correct answer-The answer is a fee paid by a title company to an
originator for referral of settlement services. RESPA requires any fees to be
"earned." Referral fees are considered a violation.
When is it legal to refuse to conduct a lending transaction with a consumer on the
basis of their personal characteristics?
The consumer is a minority who may need assistance with closing costs
A large percentage of the borrower's income is from public assistance
The applicant is married but applying individually
The borrower is too young to have legal authority to enter a binding contract -
Correct answer-The answer is the borrower is too young to have legal authority to
enter a binding contract. A creditor may consider the personal characteristics of the
applicant if the applicant is not of legal age to enter a binding contract
All of the following types of information must be reported for government
monitoring purposes in accordance with HMDA, except:
Identification of loans subject to HOEPA
Action taken on the loan and the location of the subject property
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,Ethnicity, race, sex, and income of the applicant
Ethnicity, race, sex, and religion of the applicant - Correct answer-The answer is
ethnicity, race, sex, and religion of the applicant. HMDA monitoring requires the
collection of extensive data about each mortgage loan application and origination.
This includes any action taken on the loan, indication of whether the loan is subject
to HOEPA, and the ethnicity, race, sex, and income of the applicant. HMDA does
not require the collection of information about an applicant's religion.
Which of the following borrowers is best suited for an HECM?
A borrower who needs money for several home improvement projects
A 62-year old borrower who just cashed in a 401k for a down payment
A borrower who was disabled during service for the military
A 65-year-old borrower without a mortgage who would like to supplement his
income - Correct answer-The answer is a 65-year-old borrower without a mortgage
who would like to supplement his income. Home equity conversion mortgages
allow elderly borrowers who have significant equity in their homes the opportunity
to draw on that equity, without repayment, as long as they continue to live in the
home.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, A consumer signs a closed-end lending agreement on Wednesday. What is the
latest that he/she may wait to exercise the right to rescind?
Midnight on Friday
Midnight on Saturday
Midnight on Monday
Midnight on Tuesday - Correct answer-The answer is midnight on Saturday. A
consumer for a closed-end loan may exercise the right to rescind at any time up
until midnight of the third business day after signing the lending agreement. For
the purposes of calculating time limitations for rescission, Saturdays are considered
to be business days - meaning that if the consumer signed an agreement on
Wednesday, the latest he or she may wait before exercising the right to rescind
would be midnight on Saturday.
If a borrower is required to pay alimony or child support, it must be included as
a(n):
Asset
Liability
Qualifier
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
Exam 4 Questions and Answers Graded
A+
The administrative authority of the Commissioner includes all but which of the
following?
Promulgate rules or regulations implementing the S.A.F.E. Act
Administer, interpret, and enforce the S.A.F.E. Act
Carry out the intentions of the Legislature
Sentencing violators of the S.A.F.E. Act to appropriate prison terms - Correct
answer-The answer is sentencing violators of the S.A.F.E. Act to appropriate prison
terms. State regulators, such as a Commissioner, are not responsible for
determining criminal sentences for violators of the S.A.F.E. Act.
Which of the following forms of compensation is a violation of RESPA?
A fee paid by a title company to an originator for referral of settlement services
Borrower credit
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Money earned by a title company for closing a loan
Broker fee - Correct answer-The answer is a fee paid by a title company to an
originator for referral of settlement services. RESPA requires any fees to be
"earned." Referral fees are considered a violation.
When is it legal to refuse to conduct a lending transaction with a consumer on the
basis of their personal characteristics?
The consumer is a minority who may need assistance with closing costs
A large percentage of the borrower's income is from public assistance
The applicant is married but applying individually
The borrower is too young to have legal authority to enter a binding contract -
Correct answer-The answer is the borrower is too young to have legal authority to
enter a binding contract. A creditor may consider the personal characteristics of the
applicant if the applicant is not of legal age to enter a binding contract
All of the following types of information must be reported for government
monitoring purposes in accordance with HMDA, except:
Identification of loans subject to HOEPA
Action taken on the loan and the location of the subject property
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,Ethnicity, race, sex, and income of the applicant
Ethnicity, race, sex, and religion of the applicant - Correct answer-The answer is
ethnicity, race, sex, and religion of the applicant. HMDA monitoring requires the
collection of extensive data about each mortgage loan application and origination.
This includes any action taken on the loan, indication of whether the loan is subject
to HOEPA, and the ethnicity, race, sex, and income of the applicant. HMDA does
not require the collection of information about an applicant's religion.
Which of the following borrowers is best suited for an HECM?
A borrower who needs money for several home improvement projects
A 62-year old borrower who just cashed in a 401k for a down payment
A borrower who was disabled during service for the military
A 65-year-old borrower without a mortgage who would like to supplement his
income - Correct answer-The answer is a 65-year-old borrower without a mortgage
who would like to supplement his income. Home equity conversion mortgages
allow elderly borrowers who have significant equity in their homes the opportunity
to draw on that equity, without repayment, as long as they continue to live in the
home.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, A consumer signs a closed-end lending agreement on Wednesday. What is the
latest that he/she may wait to exercise the right to rescind?
Midnight on Friday
Midnight on Saturday
Midnight on Monday
Midnight on Tuesday - Correct answer-The answer is midnight on Saturday. A
consumer for a closed-end loan may exercise the right to rescind at any time up
until midnight of the third business day after signing the lending agreement. For
the purposes of calculating time limitations for rescission, Saturdays are considered
to be business days - meaning that if the consumer signed an agreement on
Wednesday, the latest he or she may wait before exercising the right to rescind
would be midnight on Saturday.
If a borrower is required to pay alimony or child support, it must be included as
a(n):
Asset
Liability
Qualifier
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
