Definitions
IF a VA borrower has already left the military the borrower must have this document reflecting an honorable discharge.
DD214
a creditor may not refinance a higher-priced loan within the first 12 months of origination, unless the new loan is in the borrower's best interest.
Regulation Z in compliance with HOEPA
Assets are typically classified as liquid or not liquid. Which of the following is NOT a liquid asset?
A. Land and Real Estate investments
B. Stock and Bonds
C. retirement investment account
D. Certificate of deposit
A. Land and Real Estate investments
Bob meets with a loan originator at XYZ Mortgage Company to inquire about mortgage loan options. His name is on the National Do Not Call Registry. XYZ mortgage can still call Bob up to 3 months from the meeting date.
True or False
TRUE
The Closing disclosure must be provided to the applicant at least ___ days prior to consummation
3 days
If a borrower has a first and second mortgage and wants to replace the first, the second lien holder will need to remain in second position to allow a new first mortgage to replace the original first. This process is called
Subordination
Which Regulation established the 3- day right of rescission rule?
A good payment history under the Home owner's protection Act means no ____ lates in the last 24 months and no ___ lates in the past 12 months
a. 30/90
b. 60/30
c. 30/60
d. 60/90
b. 60/30
A change that makes the APR inaccurate by increasing it more than 1/8th for a regular loan after closing disclosure will require a new 3 day waiting period.
True or False
True
The period to provide a refund for a tolerance violation onthe Loan Estimate is ___ days after consummation
60 days
What type of loan is best defined as a loan that meets the criteria necessary to be sold in the secondary Market?
Conforming
High-Cost Loans are part of which larger regulation?
if a person on title does not receive the notice of the right to rescind then the right to rescind the transaction extend to ___ years.
a. 5 years
b. 3 years
C. 6 years
d. 2 years
b -3 years
The origination fee on the loan estimate has a zero tolerance.
TRUE or FALSE
True
An analysis of an escrow account must be done ____ per year
once
What ACT requires lenders to automatically cancel PMI when a home has been paid down to 78% of its original value or has attained 22% equity based on the original value, assuming the borrower is not delinquent?
Blockbusting is part of which Regulation/ Act?
Fair Housing Act
The SAFE ACT defines a non-traditional mortgage as any product other than a ___ year fixed rate mortgage.
a. 15 year
b. 30 year
c. 20 year
d. 10 year
b -30 year
The lender is allowed to collect a 3 month cushion reserve on an escrow account.
TRUE or FALSE
False - 2months
A servicer receiving the transferred loan must notify the borrower in writing within ___ days of receiving the transferred loan.
15 days
Trying to convince a homeowner to PURCHASE in a particular neighborhood based on his race, religion or ethnicity is called?
Regulation Z
Private mortgage insurance and escrows required when LTV is greater than :
a. 75%
b. 90%
C. 80%
D. 95%
C- 80%
If a borrower rescinds a loan the lender has 30 days to return all monies paid in connection with the loan and cancel the security instrument.
TRUE or FALSE
False - 20 days
A Consumer Reporting Agency (CRA) must addresss disputes within___ days
30 days