1.
Ernie's bank issues him a portfolio mortgage loan because he is an important customer but doesn't fit standard conforming loan parameters. With 15% to put down, Ernie's loan contains PMI. By when must his servicer remove his PMI assuming that Ernie always maintains a current account status?
1 out of 120
2.
A borrower has a 3/1 ARM with a start rate of 1.5%. The CAP structure is 3/1/6. Assuming worst-case scenario, in what year could this loan reach its highest possible rate?
2 out of 120
3.
Linda wants to purchase a home but only has 15% to put down. Her lender is only willing to lend her 70% of the property's value. Which of the following is not an option for Linda?
3 out of 120
4.
Harmony received a call from a potential borrower asking for a Loan Estimate. Harmony explained that, in order to issue an LE, she would first need to review the caller's credit report, income documents, and asset statements. What, if anything, did Harmony do wrong?
4 out of 120
5.
Which of the following is considered to be an immediate family member?
5 out of 120
6.
One of the primary differences between standard insurance and title insurance is that ...
6 out of 120
8.
An individual arranges for a financial institution to erroneously transfer funds into his company's escrow account. In addition to the actual fraud, this individual can also be prosecuted for …
8 out of 120
9.
In 1970, the Federal Home Loan Mortgage Corporation was created for what purpose?
9 out of 120
10.
A mortgage servicer must unconditionally remove PMI on a conventional conforming mortgage loan when the loan reaches ...
10 out of 120
11.
Which of the following entities would prosecute individuals accused of committing mortgage fraud?
11 out of 120
12.
A temporary buydown is an example of ...
12 out of 120
13.
Arnold's lender is applying an interest credit. As such, which of the following conditions apply?
13 out of 120
14.
When will RESPA apply to land loans?
14 out of 120
15.
Michelle called her MLO irate the day after applying for a mortgage. Approximately an hour after applying for a mortgage, Michelle was inundated with solicitations from loan originators trying to sell her a mortgage loan. What caused this to happen?
15 out of 120
17.
The web-based version of Fannie Mae's automated underwriting system is referred to as …
17 out of 120
18.
Which of the following loans is non-traditional?
18 out of 120
19.
Which of the following is not a type of Qualified Mortgage?
19 out of 120
20.
A state Commissioner is authorized to fine a violator up to …
20 out of 120
21.
All but which of the following negates the need to issue an ABAD?
21 out of 120
22.
All but which would appear legitimate?
22 out of 120
24.
Clerical or support duties do not include …
24 out of 120
25.
Which regulation is most similar to the MAP Rule?
25 out of 120
26.
An ad valorem tax is determined based on a property's ...
26 out of 120
27.
A borrower's home is worth $750,000. He has a first mortgage of $275,875, a second mortgage of $12,550, and a $130,000 home equity line of credit for which he currently owes $26,800. What is this borrower's TLTV?
27 out of 120
28.
A borrower is refinancing her current primary residential mortgage of $275,000 at 6.25% with a new loan of $200,000 at 2.5%. Assuming settlement fees amount to $3,500, how much will she have to bring to settlement if she closes on a Thursday the 10th?
28 out of 120
29.
Subprime financing is the ethical and appropriate mortgage solution when all but which of the following apply?
29 out of 120
30.
Who/what is responsible for protecting consumers' credit data?
30 out of 120
31.
All but which of the following are components of money laundering?
31 out of 120
32.
Which of the following is not an example of an unearned fee prohibited by RESPA?
32 out of 120
33.
Under what circumstance would Mortgage Underwriter Miranda be required to secure her MLO license?
33 out of 120
34.
Elijah knows that, if he refuses to work with people of a particular ethnicity, he will lose his job. Not wanting to get fired, whenever someone of that ethnicity expresses interest in working with him, Elijah extends him or her only 15 minutes of his time. Everyone else he affords as much time as is needed. By doing this, Elijah is conducting the unethical practice of ...
34 out of 120
35.
In accordance with RESPA, for fee income to be earned, the fee being charged must be legitimate and the income earned must .....
35 out of 120
36.
All but which of the following is defined as a federal banking agency?
36 out of 120
37.
All of the following are permissible except …
37 out of 120
38.
All but which of the following are not included in the APR?
38 out of 120
39.
If a borrower needs $75,500 to settle on a loan and only has two mutual funds to present as assets, how much must one of those mutual funds be worth in order to accept both mutual fund statements at their face value?
39 out of 120
40.
Which of the following can be considered a traditional mortgage?
40 out of 120
41.
Of the following, who must be listed on the application as the primary borrower in the presence of multiple applicants?
41 out of 120
42.
Loan Originator Lou dislikes a particular ethnicity. As such, Lou refuses to visit referral sources and market in metropolitan statistical areas inhabited by people of that ethnicity. By doing so, Lou is ...
42 out of 120
43.
If a borrower's front end DTI ratio is 25% and she has a $9,500 monthly income, how much non-housing-related debt does she have if her back end DTI ratio is 33%?
43 out of 120
44.
An attorney originates a mortgage loan for two clients pursuing a divorce that he is mitigating. Upon the loan's funding, the lender issues the attorney a check for $1,000. Which of the following statements is correct?
44 out of 120
45.
Heather takes a virtual mortgage application through a platform such that she can see and hear her applicant and her applicant can see and hear her. At the application's Government Monitoring Section, her applicant, who clearly appears to be a male, identifies himself as a female. What should Heather do?
45 out of 120
46.
Overt discrimination is synonymous with …
46 out of 120
47.
A mortgage originator's fiduciary responsibility begins ...
47 out of 120
48.
In 1970, the Federal Home Loan Mortgage Corporation was created for what purpose?
48 out of 120
49.
What is the daily per diem for a loan amount of $465,010 at an interest rate of 6%
49 out of 120
50.
Edgar's mortgage balance was $358,210. His home's value is $715,550. After remitting his most recent payment, Edgar's mortgage balance became $359,100. Edgar's current situation reflects …
50 out of 120
51.
Linda was informed that her mortgage application was declined due to insufficient loan suitability. Specifically, it was declined because ...
51 out of 120
52.
Upon requesting a Loan Estimate, how many mortgage options must the inquirer be given?
52 out of 120
53.
All, but which, would technically require the issuance of a GFE?
53 out of 120
54.
Rufus Realtor wants to make a quick buck. As such, he enters into an agreement with an appraiser to produce an artificially-deflated appraisal on a property currently in default. By convincing the lender to release the lien at the erroneously-low value, Rufus and the appraiser are guilty of ...
54 out of 120
55.
Which of the following represents a safe harbor?
55 out of 120
56.
The property Walter wants to purchase contains three bedrooms and two bathrooms. The most applicable comparable property that the appraiser can find contains two bedrooms and two bathrooms. If the value of a bedroom is $10,000, what must the appraiser do in order to use this particular comp?
56 out of 120
57.
If a borrower is paying $9,562.50 in discount points for a loan amount of $510,000, how many discount points is he purchasing?
57 out of 120
58.
The largest Secondary Market participant is ...
58 out of 120
59.
Francis applies for an ARM to refinance his house on Tuesday. By Friday, which of the following disclosures would Francis not be issued by his MLO?
59 out of 120
60.
If a borrower earns $45 per hour, works a 40-hour work week Monday through Friday that includes a daily, one-hour-hour unpaid lunch, how much does he earn on a weekly basis?
60 out of 120
61.
"Know before you owe" is associated with the ...
61 out of 120
62.
Which of the following loans is assumable?
62 out of 120
63.
Kickbacks are prohibited because …
63 out of 120
64.
The Hispanic people living in a poor section of a city generally do not qualify for mortgage financing. As such, a lender avoids marketing there to avoid the costs associated with taking applications that are ultimately declined. This lender is …
64 out of 120
65.
Which of the following individuals could simultaneously work as an MLO, an underwriter, and a processor?
65 out of 120
66.
Mortgage fraud is investigated by all but which of the following entities?
66 out of 120
67.
The full factual may also be referred to as a/an...
67 out of 120
68.
Which of the following would trigger the requirement for a second appraisal when the loan is an HMPL?
68 out of 120
69.
Freddie Mac was originally created to …
69 out of 120
70.
The SAFE Act was established with the purposes of …
70 out of 120
71.
Which of the following is conforming?
71 out of 120
72.
All but which of the following is a purpose of RESPA?
72 out of 120
73.
Which of the following loans could Mark pursue if his annual household income amounts to $745,000?
73 out of 120
74.
Who, of the following, is not in jeopardy of criminal prosecution?
74 out of 120
75.
Fannie Mae resulted from the .....
75 out of 120
79.
Martin is buying his first home. He is told by his MLO that, although taking an independent first-time homebuyer education class is a wise idea, it is not mandatory for him to do so. For what loan is Martin applying?
79 out of 120
80.
All but which of the following is not an ECOA requirement?
80 out of 120
81.
Awful Antics Mortgage Associates knows that the people living in a socioeconomically-depressed section of Detroit, Michigan are typically unable to qualify for mortgage financing. As such, Awful Antics' management issued a directive ordering all MLOs to avoid marketing in that area. What ethical failure, if any, did Awful Antics commit?
81 out of 120
82.
When would closing mean the same as consummation?
82 out of 120
83.
The full factual may also be referred to as a/an...
83 out of 120
84.
Which of the following is responsible for an ARM's interest rate movement?
84 out of 120
85.
The SAFE Act was established by ...
85 out of 120
86.
The individual overseeing the regulation of mortgage lending activities conducted in a particular state is the ...
86 out of 120
87.
When is an MLO permitted to question a borrower's identity?
87 out of 120
88.
Who/what is responsible for protecting consumers' credit data?
88 out of 120
89.
If Allison earns $3,800 per month, pays $150 towards her monthly Visa bill even though her minimum payment is $75, and has five months left on a monthly $250 auto lease, what is her back end DTI if her PITI is $875?
89 out of 120
90.
Michael is a money launderer who devises a plan by which an account will be opened at a local bank. For a fee, the head teller has conspired with Michael to deposit checks that Michael mails to her without questioning their origin. With what crime(s) can Michael and the head teller be charged?
90 out of 120
91.
In order to act in a dual capacity as both the Realtor and the MLO, Eddie coerces his client to pursue a conventional loan even though the USDA program would be the client's best choice. Eddie can be accused of …
91 out of 120
92.
All, but which, of the following would be an appropriate means for taking a mortgage loan application?
92 out of 120
93.
All but which are not net tangible benefits justifying a refinance?
93 out of 120
94.
A kickback is permitted …
94 out of 120
96.
Under the SAFE Act, state mortgage regulatory authorities are empowered to do all but which of the following …
96 out of 120
97.
A REMIC is best described as ...
97 out of 120
98.
A borrower's loan amounts to $410,000. Her interest rate is 3.875%. If her lender grants her an interest credit, how much will she receive at settlement if she closes on the 4th day of month with 31 days in it?
98 out of 120
99.
A Ponzi scheme is closely related to …
99 out of 120
101.
How long does a mortgage servicer have to issue an accurate payoff letter to someone who legitimately requests it?
101 out of 120
102.
By when must a Notice of Incomplete Application be issued?
102 out of 120
103.
In order to successfully petition her mortgage servicer to remove her loan's PMI, Nicole must be able to demonstrate all but which of the following to her mortgage servicer?
103 out of 120
104.
A customer complains that her Realtor rushed her through her final property inspection and avoided answering several of her questions. The Realtor may be suspected of …
104 out of 120
105.
All but which of the following is considered to be a depository institution?
105 out of 120
106.
Annie suspects that her prospective borrower may be committing identity fraud. What should she do?
106 out of 120
107.
How long does a mortgage servicer have to refund a QM threshold overcharge, without risking sanction, assuming that the borrower does not discover it first?
107 out of 120
108.
TRID consolidated the ...
108 out of 120
109.
All but which are not net tangible benefits justifying a refinance?
109 out of 120
110.
Even though it is not required, ethically, an MLO should always provide their prospective customer with …
110 out of 120
111.
Of the following, who must be listed on the application as the primary borrower in the presence of multiple applicants?
111 out of 120
112.
Under the SAFE Act, MLOs are governed by …
112 out of 120
113.
Thomas and Janey decide to buy a house together. Since Thomas' credit is seriously damaged, Janey chooses to apply for the loan on her own. When Janey's new loan closes, both attend the closing. How would you classify Thomas?
113 out of 120
114.
Upon requesting a Loan Estimate, how many mortgage options must the inquirer be given?
114 out of 120
115.
Comprehensive Title is throwing a picnic for all loan officers who sent it new business throughout the previous year. Tom is a loan officer who graciously accepts the invitation and attends. How may Tom legitimately partake in the food and drink that Comprehensive is providing?
115 out of 120
116.
A mortgage loan becomes assumable when it ...
116 out of 120
117.
Thomas and Janey decide to buy a house together. Since Thomas' credit is seriously damaged, Janey chooses to apply for the loan on her own. When Janey's new loan closes, both attend the closing. How would you classify Thomas?
117 out of 120
118.
General business day is most closely associated with .......
118 out of 120
120.
If a borrower owes $210,775 on a loan at 5.75% fixed, is presently current but has an outstanding late charge balance of $1,116 and pays the loan off on the eighth day of the month, to what will his payoff figure amount?
120 out of 120
