Federal Mortgage-Related Laws
General Mortgage Knowledge
Mortgage Loan Origination Activities
Ethics
Uniform State Content
100

Which Act amended the Truth in Lending Act, establishing disclosure requirements and prohibiting equity stripping and other abusive practices in connection with "high-cost" mortgages?

HOEPA

100

In a mortgage loan, is the borrower the mortgagee or mortgagor? 

mortgagor

100

According to the Truth in Lending Act, which loan type includes the right to rescind? 

A. purchase 

B. non-owner occupied refinance 

C. construction 

D. owner occupied refinance

D

100

ECOA requires a mortgage loan originator to inquire about a customer's marital status in a specific way. Which is the correct way to ask?

Are you married, unmarried, or separated?

100

Brenda earns a salary as well as a commission for every residential mortgage loan application she takes for her employer, a registered mortgage broker. Brenda must be a:

A. licensed mortgage loan underwriter. 

B. certified loan processor. 

C. commissioned mortgage loan examiner. 

D. licensed mortgage loan originator.

D

200

Title V of the Housing and Economic Recovery Act of 2008 is more commonly known as the

SAFE Act

200

GNMA insures what type of mortgage backed securities?

FHA

200

Adam secures a loan to buy a small office building that he intends to rent. Under the Truth in Lending Act, how long will he have to change his mind after he signs the note?

0 days, there is no right of rescission

200

A for-profit MLO who claims to be a "counselor" in an ad about loan modification would be in violation of what law?

TILA

200

A licensed mortgage loan originator who is in charge of, and responsible for, the operation of the branch office of a mortgage broker or mortgage lender is referred to as the

Branch manager

300

Which federal regulation limits the length of time that adverse collection information may appear in a consumer's credit report?

Regulation V

300

A loan in which total payments over the life of the loan pay off the entire balance of principal and interest due at the end of the term is called

fully amortized

300

The duty to investigate a consumer dispute falls to the information furnishers. According to the FCRA, how many days do they usually have to respond to the consumer from the receipt of notice of a dispute?

30 days

300

Broker Tom advertises low interest rates and includes the accurate APR. However, when qualified applicants come in, Tom tells them that the smarter loan for them would be one with a slightly higher rate and more fees. Did Tom do anything wrong?

Yes, Tom could be accused of using a bait and switch tactic to earn more

300

Who is responsible for the accurate accounting of all monies due to and from the parties in a real estate sale?

Settlement or escrow agent

400

A $100,000 loan will be considered a Section 32 loan if the points and fees are greater than

5% of the loan amount

400

Another name for a due on sale clause that gives the lender certain rights when property ownership is transferred. 

Alienation clause

400

Laura's name is on the National Do Not Call Registry. At what point after she closes a loan with ABC Mortgage must ABC stop contacting her to solicit new business?

after 18 months

400

If an appraiser intentionally underestimates an appraisal value for the purpose of keeping the values in that area low, that appraisal would be violating which law?

TILA

400

Bill is attempting to get licensed in Texas, which has adopted UST. He has already taken and passed the retired 100-question National Test Component, but never passed the Texas State Test Component, having failed three times prior to April 1, 2014. What are his requirements after April 1, 2014? 

A. Bill must take the Texas State exam only. 

B. Bill must take and pass the National Test with Uniform State Content and the Texas State exam. 

C. Bill must take and pass the National Test with Uniform State Content. 

D. Bill must take and pass the Stand Alone UST only.

C

500

Which act provides a specific definition of a nontraditional loan?

Secure and Fair Enforcement Mortgage Licensing Act

500

In a refinance transaction closing, hypothecation occurs. This is described as ___________________________.

using property as collateral without surrendering use or possession of it.

500

What is the Notice to Home Loan Applicant? 

What law requires that this disclosure is provided to an applicant? 

Triggered by obtaining a credit score in connection with a mortgage application. It has two sections: 

1. Your Credit Score

2. Understanding Your Credit Score

500

The difference between actual fraud and constructive fraud is that actual fraud is _______.

intentional

500

A loan modification refers to

changing the terms of an existing loan