Loan Programs
What type of appraisal is used for a construction loan?
“subject to”
What section of the URLA (1003,65) Form has to do with government monitoring information?
Section X
The SAFE Act is also known as:
A. Reg N
B. Reg O
C. Reg H
D. Reg V
C. Reg H
What act gives people the right to a free credit score every 12 months?
A. FCRA
B. FACTA
C. ECOA
D. None
D. None
Which regulatory authority governs the Do Not Call List?
Federal Trade Commission (FTC)
What is the only loan type that does not require Ability to Repay?
FHA HECM
If Trey goes into Acme Mortgage Company and meets with MLO Elmer and refuses to provide his race and ethnicity for the application, what should Elmer do?
Make a decision based on visual appearance and surname
How many hours of Traditional Program pre-licensing is required for an MLO?
A. 0
B. 1
C. 2
D. 3
A. 0
Which was enacted with the purpose to empower consumers to prevent identity theft?
A. FCRA
B. FACTA
C. GLB
D. ECOA
B. FACTA
In order to comply with the PATRIOT Act, what information must you verify and how must you verify it?
SSN/TIN, Address, Name, DOB and with covered documents (current government issued ID)
What is the income limit cutoff for Section 502 loans?
115% of the area median income
What type of housing does HMDA apply to?
According to the Safe and Fair Enforcement Act, if Adam is registered with the NMLSR and is working for Habitat for Humanity to help people obtain mortgages for those houses, is he required to have an MLO license?
No
Within how many days of denial due to credit must the creditor send an Adverse Action Notice to the borrower?
A. 30 days
B. 45 days
C. 60 days
d. 90 days
C. 60 days
What amount must you report regarding insider abuse?
Any $ amount
If Roberta passes away and she had an FHA HECM reverse mortgage on her house, what happens to the loan and what options does her grandson Paul have who inherited the house?
1 year freeze on payments until he sells or refinances to a regular loan
Borrower Stacy believes that Pauline and her husband Paul are refusing to sell her their house because she is a single mother. What act is Pauline and Paul violating and what action can Stacy take?
Fair Housing Act. She can bring a complaint to HUD within 1 year.
Tom receives his MLO license on October 15th 2018. What date will it expire on?
A. December 31st 2018
B. January 1st 2019
C. Oct 15th 2019
D. December 31st 2019
A. December 31st 2018
Which of these is not one of the rights guaranteed to consumers under Regulation V?
A. The delivery of an adverse action notice in the event of a credit denial.
B. The ability to request a copy of the consumer credit file.
C. The right to remove incomplete information from a credit report.
D. The ability to limit prescreened offers.
C. The right to remove incomplete information from a credit report.
The Homeowner’s Protection Act governs ____.
A. MIP
B. PMI
C. HOEPA
D. NPPI
B. PMI
If Megan has an FHA loan with a current LTV of 81%. Her beginning LTV was 89% of the original loan amount. When can she cancel MIP?
A. 80% LTV
B. 78% LTV
C. Never
D. After 11 years
D. After 11 years
Kyle and Olivia are interested in getting an FHA loan to buy a new house because they have lower income level and higher DTI ratios. The lender denies their application due to the fact that Kyle’s tax returns show he has gambling income from the previous 3 years. What does this violate and why?
ECOA- it is discrimination based on source
All of the following are exempt from needing an MLO license except:
A. Maria who is a registered MLO at Chase Bank
B. Olivia who originates 4 loans per year
C. Dillon who is originating a loan for his son
D. Trey who has an ad in the local newspaper saying he will help you get a 100% guaranteed VA loan
D. Trey who has an ad in the local newspaper saying he will help you get a 100% guaranteed VA loan
Which of the following would not be dropped off from a credit report?
A. Foreclosure from 8 years ago
B. A charged-off credit card from 10 years ago
C. Chapter 7 bankruptcy from 7 years ago
D. Chapter 13 bankruptcy from 10 years ago
C. Chapter 7 bankruptcy from 7 years ago
You have an EBR with a customer that has requested to be on your internal DNC list, when may you contact them?
A. Never
B. Within 90 days of establishing the EBR
C. If you need to discuss something about servicing their loan
d. Within 18 months of establishing the EBR
C. If you need to discuss something about servicing their loan