Test Free sample You're about to begin your sample practice exam. This exam contains 15 questions. Good luck! 1. A refinance requires ... A revised promissory note and a new security instrument A revised promissory note and a revised security instrument A new promissory note and a revised security instrument A new promissory note and a new security instrument None 1 out of 15 2. The two types of title insurance available through the purchase of a primary residence are: Owner’s and investor’s Owner’s and occupier’s Lender’s and owner’s Lender’s and hazard None 2 out of 15 3. Select the answer that best describes the requirements surrounding the unique identifier of any person originating a residential mortgage loan. It shall be clearly shown on all personal mortgage loan application forms, solicitations, or advertisements, including business cards or websites, and any other documents as established by rule, regulation, or order of the Commissioner It shall be clearly shown on all commercial mortgage loan application forms, solicitations, or advertisements, including business cards or websites, and any other documents as established by rule, regulation, or by order of the Commissioner It shall be clearly shown on all residential mortgage loan application forms, solicitations, or advertisements, including business cards or websites, and any other documents as established by rule, regulation, or order of the Commissioner It shall be clearly shown on all fixed-interest home mortgage loan application forms, solicitations, or advertisements, including business cards or websites, and any other documents as established by rule, regulation, or order of the Commissioner None 3 out of 15 4. Which of the following was one purpose of the HERA? Improving the stock market Establishing the NMLSR Pursuing and prosecuting terrorists Recovering from the mortgage crisis None 4 out of 15 5. What was developed by the CSBS and AARMR and what was it for? The NMLS State Guidelines, to assist states in complying with the SAFE Act The SAFE Act, to provide for the licensing and registration of mortgage loan originators The CFPB Audit Rules, to ensure compliance with Model State Law The MSL, to assist states in complying with the SAFE Act None 5 out of 15 6. At what LTV is a mortgage servicer required to remove PMI on a “high-risk” loan, assuming that the borrower’s loan is current? 77% 80% 78% 22% None 6 out of 15 7. Which of the following was not a component to the Guidance on Nontraditional Mortgage Product Risks? Loan terms and underwriting standards Risk management practices Consumer Protection Issues Subprime abuses None 7 out of 15 8. Which of the following mortgage broker policies would violate fair lending laws? Refusing to originate loans in an earthquake zone Doing business only with customers who are seeking loans for residential properties Refusing to originate loans in zip codes known to be economically depressed Originating loans only for customers who live within 100 miles of the broker’s location None 8 out of 15 9. Which of the following loans would not be assumable? An FHA loan A VA loan A traditional conventional loan An ARM None 9 out of 15 10. What is the Model State Law? A document created by the CSBS and the AARMR to guide states in implementing the legislation required by the SAFE Act A form composed by the CSBS and the AARMR to guide banks in implementing the legislation required by the SAFE Act A model created by the CSBS and the AARMR to guide states in implementing the legislation required by the Mortgage Licensing Act A book created by the CSBS and the AARMR to guide mortgage companies in implementing the legislation required by the SAFE Act None 10 out of 15 11. A mortgage broker is unable to assist a client and refers him to another mortgage broker for origination services. The second broker pays the referring broker a fee for providing the lead. Which of the following is correct? Payment of the fee is illegal The fee is illegal unless the brokers provide a disclosure to the client The fee is legal as long as the brokers have a pre-existing marketing service agreement in place The fee is legal as long as the brokers do not have a pre-existing marketing service agreement in place for payment of referral fees None 11 out of 15 12. A borrower's total monthly housing expense is often referred to as PITI and includes all of the following except: Principal, interest, and mortgage insurance Principal, interest, hazard insurance, and utilities PMI Insurance (if applicable) Local and state property taxes (if applicable) None 12 out of 15 13. Each of the following statements are true about a deed except: The grantor must sign the deed The deed is a legal document and must use a legal description to identify the property The deed is recorded into public record The deed need not be in writing None 13 out of 15 14. Which of the following is a mortgage applicant asked to disclose voluntarily? Her years of education Her marital status Her sex Her age None 14 out of 15 15. Unethical practices in the mortgage industry have been blamed for all but which of the following? The subprime meltdown The housing bubble bursting Rising foreclosure rates Mortgage fraud None 15 out of 15 Congratulations! You've completed your sample practice exam. Please submit your test to see your results. Time's up By Shubham|4:24 am|Comments Off on Test Free sample Share This Story, Choose Your Platform! FacebookXRedditLinkedInWhatsAppTelegramTumblrPinterestVkXingEmail About the Author: Shubham
