Penalties
Up to $10,000 fine & 1 year imprisonment
Secondary sources of income that are acceptable in calculating debt-to-income ratios include all of the following except...
A. Commissions
B. Overtime
C. Social Security benefits
D. Sporadic bonus payments
Sporadic bonus payments may not be considered because they are inconsistent
Tolerance on Prepaid Mortgage Insurance (hint: 0%, 10%, or unlimited tolerance)
0%
The loan estimate must be provided no later than three business days after receiving a completed application, and no later than _______ prior to consummation.
7 business days.
November 1 - December 31
Penalty for mortgage fraud
$1,000,000 fine and up to 30 years in prison
What is the maximum front-end and back-end DTI ratio for an FHA loan?
Front-end: 31%
Back-end: 43%
Tolerance on Recording Fees (hint: 0%, 10%, or unlimited tolerance)
10%
According to the standard deed of trust, how soon must a borrower on an owner-occupied loan occupy the property?
Calculate the CLTV using the following information:
Sales price: $150,000
Appraised value: $180,000
First mortgage amount: $70,000
Second mortgage amount: $50,000
CLTV = 80%
Criminal penalty for violating TILA
$5,000 fine & 1 year imprisonment
A borrower makes $20 per hour and works 35 hours per week. If their loan program allows a front-end debt ratio of 31%, what is the maximum housing payment for which they can qualify?
$940.33
Minimum credit score for a borrower requesting maximum FHA financing
580
The Telemarketing Sales Rule offers a "safe harbor" provision for unintentional calls to consumers who have opted out. One of the qualifications for the "safe harbor" is that the entity maintains records providing regular access to the National Registry to scrub internal lists every ________.
31 days
What does each number represent in the following piggyback loan example:
80/10/10
80% first lien
10% second lien
10% down payment
Class action penalty for violating ECOA
lesser of $500,000 or 1% net worth
A borrower has monthly permanent disability income of $1,450. What is the gross amount you use to qualify the borrower?
$1,812.50
Maximum prepayment penalty allowed to be charged within the first year of a qualified mortgage loan
2%
For a sole proprietorship, income, expenses, and taxable profits are reported on:
Schedule C of the IRS 1040 form
State-licensed MLOs are required to complete a minimum of 8-hours of NMLS-approved continuing education annually to renew their license. How is the 8-hour requirement broken down?
3 hours: Federal Law & Regulations
2 hours: Ethics
2 hours: Nontraditional Mortgage Products
1 hour: Electives
Part 1: Maximum penalty for violating the SAFE Act
Part 2: Who has the authority to impose the penalty
Part 1: Maximum penalty of $25,000.
Part 2:The state regulator, whether called the Director, Superintendent, Supervisor, or Commissioner.
A borrower obtains an ARM with a start rate of 2.5% and a periodic rate cap of 1%. The loan adjusts four times. After the fourth adjustment, the rate is expected to be 6.5%. However, due to the lifetime cap on the loan, the rate is not permitted to exceed 6%. What is the lifetime rate cap?
The lifetime rate cap limits the maximum amount by which the rate on an ARM may increase from the start rate.
A loan is a High Cost Loan if the total Lender and Broker fees exceed ____% of the total loan amount over $_______.
5%
$20,000
What's the fastest a loan transaction can be closed?
7 business days
The borrower must receive the LE at least 7 business days prior to closing.
Credit in excess of _______ is not covered by TILA unless it is secured by a dwelling/real property.
$25,000