FED
LAW
General Mortgage Knowledge
Mortgage Loan origination Activities
Ethics
Uniform State Content
100

The Fair Housing Act states that discrimination in housing is not allowed based on several factors, including familial status. What does someone's familial status refer to?

Pregnancy/having children under 18 

years old 

100

What is a VA IRRRL?

Interest Rate Reduction Refinance Loan

100

What is the guarantee fee required by the Single Family Housing Guaranteed Loan Program?

1%

100

What is builder bail-out fraud?


A builder gives undisclosed payment assistance to buyers to sell properties quickly  

100

What is the primary purpose of the SAFE Mortgage Licensing Act?

To establish minimum standards for the licensing and registration of state-licensed mortgage loan originators and to provide a comprehensive licensing system

200

The regulatory authority for the HPA

CFPB

200

What is the name of the automated underwriting system is used for USDA loans?

Guaranteed Underwriting System

200

What is the tolerance for the increase in the APR from the Loan Estimate to the Closing Disclosure on a TILA-governed transaction for a fixed rate mortgage?

0.125%

200

An MLO misleads a borrower to choose a loan that yields a higher commission, rather than one better suited for the borrower. This is an example of:

 Predatory Lending 

200

Which federal agency is responsible for overseeing the SAFE Mortgage Licensing Act?

CFPB

300

According to Regulation X, how many organizations must be listed on the Homeownership Counseling Organizations List?

10

300

This is where investors buy and sell securities they already own.

 Secondary Market 

300

Peyton is getting a conventional loan and making a 20% down payment. She is trying to keep track of all her closing costs. Which type of insurance policy will Peyton be required to pay for?

Lenders Title Insurance

300

Which federal regulation and section # prohibits kickbacks and referral fees between MLOs and third parties?

Reg X, RESPA, Section 8

300

What is the minimum requirement for pre-licensing education for mortgage loan originators? (How many hours per category)

20 hours of NMLS-approved pre-licensing education  

MLO – 27, 

Fed – 24 

G – 20 

Ethic – 18 

USC - 11 

400

Shortly after closing on her loan, Peyton Lewis noticed her Closing Disclosure listed her name as Lewis Peyton. She quickly contacted her lender to ensure this would be corrected. How long does the lender have to make this correction?

60 days from closing

400

 The estoppel clause is:

A clause in a contract where a person acknowledges they understand what they are signing  

400

How is a monthly interest only payment calculated?

Multiply the loan amount by the interest rate and divide by 12  

400

Most fraud for profit is initiated by:

The MLO 

400

Who regulates the NMLS?

State Regulatory Registry

500

Owen is refinancing into an ARM. What disclosures will he receive?

LE, CHARM, CD, MSDS

500

When a real estate agent does a valuation on a home using a similar process to an appraisal.

Broker Price Opinion

500

What transactions are exempt from receiving the Homeownership Counseling Organizations List disclosure under the law of RESPA?

Reverse Mortgages and timeshares 

500

Which federal law defined and outlawed UDAAPs?

Dodd Frank Act of 2010

500

The State Model was written by

CSBS &  

AARMR – American Association of Residential Mortgage Regulators 

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