National and UST Mortgage Practice
Exam 1 Questions and Answers Graded
A+
Assume a borrower completes an online loan application, including all six required
elements, but never hits "submit." Which of the following is true regarding the
lender's obligation to issue a Loan Estimate?
A. The lender must issue a Loan Estimate within three days of the borrower's
submission of the last required piece of information - ALMOST TRUE - BUT THE
LOAN APPLICATION WAS NEVER SUBMITTED
B. The lender is not required to issue a Loan Estimate - TRUE
C. The lender is required to issue a Loan Estimate once it realizes all six pieces of
information have been submitted - NOT TRUE
D. The lender is required to contact the borrower - NOT TRUE - Correct answer-I
ANSWERED A - AS I WAS THINKING THAT IN GENERAL THE LOAN
ESTIMATE SHOULD BE PROVIDED WITHIN 3 DAYS OF THE LAST
REQUIRED PIECE OF INFORMATION. THE ANSWER DOES NOT INCLUDE
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,THE WORD APPLICATION AND THE APPLICATION WAS NEVER
SUBMITTED. A LENDER CANNOT DISCLOSE ON AN APPLICATION THEY
NEVER RECEIVED. The answer is: B. the lender is not required to issue a Loan
Estimate. A lender must provide the Loan Estimate either in person or by placing it
in the mail no more than three business days after receipt of the consumer's
application AND no later than seven business days prior to consummation. If a
loan application has not been submitted, a lender is not required to issue a Loan
Estimate.
Which of the following would NOT be required if a mortgage company wishes to
utilize electronic signatures on required disclosures?
A. Borrowers must be given the option to receive the disclosures in paper form. -
TRUE
B. Borrowers must be able to withdraw their consent to receive the disclosures
electronically. - TRUE
C. The company must record the IP address from which the documents were
accessed. - FALSE
D. The company must disclose hardware and software requirements to borrowers. -
TRUE - Correct answer-I ANSWERED A - AS I COULDN'T REMEMBER THE
REQUIREMENTS OF THE E-SIGN ACT. The answer is: C. the company must
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, record the IP address from which the documents were accessed. Under the
Electronic Signatures in Global and National Commerce Act (the E-SIGN Act),
before obtaining a consumer's consent, a financial institution must provide a clear
and conspicuous statement to consumers, informing them of their right or option to
have the record provided or made available on paper or in a non-electronic form.
The statement must also explain the consumer's right to withdraw consent,
including applicable conditions, consequences, and fees. Consumers must also be
provided with information about the hardware and software required to allow them
to access and retain the electronic records.
According to the standard deed of trust, how soon must a borrower on an owner-
occupied loan occupy the property?
A. Within 30 days of closing
B. Within 90 days of closing
C. Within 60 days of closing
D. Within 15 days of closing - Correct answer-I ANSWERED A - BECAUSE I
COULDN'T REMEMBER IF IT WAS 30 OR 60 DAYS THAT A BORROWER
NEEDED TO MOVE INTO THEIR OWNER-OCCUPIED PROPERTY. The
answer is: C. within 60 days of closing. Under most deeds of trust, including most
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
Exam 1 Questions and Answers Graded
A+
Assume a borrower completes an online loan application, including all six required
elements, but never hits "submit." Which of the following is true regarding the
lender's obligation to issue a Loan Estimate?
A. The lender must issue a Loan Estimate within three days of the borrower's
submission of the last required piece of information - ALMOST TRUE - BUT THE
LOAN APPLICATION WAS NEVER SUBMITTED
B. The lender is not required to issue a Loan Estimate - TRUE
C. The lender is required to issue a Loan Estimate once it realizes all six pieces of
information have been submitted - NOT TRUE
D. The lender is required to contact the borrower - NOT TRUE - Correct answer-I
ANSWERED A - AS I WAS THINKING THAT IN GENERAL THE LOAN
ESTIMATE SHOULD BE PROVIDED WITHIN 3 DAYS OF THE LAST
REQUIRED PIECE OF INFORMATION. THE ANSWER DOES NOT INCLUDE
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,THE WORD APPLICATION AND THE APPLICATION WAS NEVER
SUBMITTED. A LENDER CANNOT DISCLOSE ON AN APPLICATION THEY
NEVER RECEIVED. The answer is: B. the lender is not required to issue a Loan
Estimate. A lender must provide the Loan Estimate either in person or by placing it
in the mail no more than three business days after receipt of the consumer's
application AND no later than seven business days prior to consummation. If a
loan application has not been submitted, a lender is not required to issue a Loan
Estimate.
Which of the following would NOT be required if a mortgage company wishes to
utilize electronic signatures on required disclosures?
A. Borrowers must be given the option to receive the disclosures in paper form. -
TRUE
B. Borrowers must be able to withdraw their consent to receive the disclosures
electronically. - TRUE
C. The company must record the IP address from which the documents were
accessed. - FALSE
D. The company must disclose hardware and software requirements to borrowers. -
TRUE - Correct answer-I ANSWERED A - AS I COULDN'T REMEMBER THE
REQUIREMENTS OF THE E-SIGN ACT. The answer is: C. the company must
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, record the IP address from which the documents were accessed. Under the
Electronic Signatures in Global and National Commerce Act (the E-SIGN Act),
before obtaining a consumer's consent, a financial institution must provide a clear
and conspicuous statement to consumers, informing them of their right or option to
have the record provided or made available on paper or in a non-electronic form.
The statement must also explain the consumer's right to withdraw consent,
including applicable conditions, consequences, and fees. Consumers must also be
provided with information about the hardware and software required to allow them
to access and retain the electronic records.
According to the standard deed of trust, how soon must a borrower on an owner-
occupied loan occupy the property?
A. Within 30 days of closing
B. Within 90 days of closing
C. Within 60 days of closing
D. Within 15 days of closing - Correct answer-I ANSWERED A - BECAUSE I
COULDN'T REMEMBER IF IT WAS 30 OR 60 DAYS THAT A BORROWER
NEEDED TO MOVE INTO THEIR OWNER-OCCUPIED PROPERTY. The
answer is: C. within 60 days of closing. Under most deeds of trust, including most
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
