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| Ability to cancel a transaction for a refi or home equity loan. Generally 3 business days: The right to rescind is only available for loans secured by the borrower's principal dwelling. |
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1.Single Purpose Reverse Mortgage
2. Home Equity conversion Mortgages(HECM)
3.Proprietary Mortgages- private loans. more expensive. |
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| SSPL should be prepared based on |
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| The best tools for a borrower to shop and rate compare are |
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| Interest Only has what features |
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| can be paid off faster than fully amortized |
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| What's the Fannie Mac hazard ins. coverage minimum |
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| 100% of the replacement cost or loan balance |
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| How does rate charged for PMI for a 90% loan compare to that for a 95% loan |
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| It depends solely on the loan amount |
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| Which of the following charges have no tolerance restriction |
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| A creditor failed to deliver the required TILA rescission notice and material disclosures. As a result, the borrower's right to rescind was extended for how many years from the date of consummation of the transaction? |
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| Bank of Doe receives a change of address request from consumer Jane. What requires the bank to follow up with Jane to verify the validity of the request? |
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| FHA requires a borrower to maintain hazard insurance of at least the lesser of |
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| the loan balance or the replacement cost of the improvements. |
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| Which of the following contains information about the penalty for providing fraudulent answers on the 1003? |
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Definition
| The Uniform Residential Loan Application |
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| What agency is TILA regulated by ? |
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| A title insurance agent may |
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Definition
| charge a fee for title insurance services which are ultimately rendered. |
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| A home is appraised at $100,000. The borrower currently has a loan of $50,000, an open end line of credit with a limit of $25,000 and a current balance of $17,500. What is his LTV? |
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| A borrower in a mortgage transaction is called |
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| What is the MINIMUM equity required to automatically eliminate mortgage insurance? |
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| RESPA does not require lender disclosures of closing costs and procedures for which of the following home loans? |
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| A credit report will always display which of the following? |
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| Name and Social Security number |
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| Which of the following CANNOT be used to help pay the down payment for a buyer wanting an FHA loan? |
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Definition
| prevent discrimination in the mortgage lending industry. |
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| A prepaid finance charge DOES NOT consists of |
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Definition
Loan origination fee
[Escrow] Processing fee
Escrow Waiver Fee
**All of the above** answer |
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Term
| Which of the following charges have 10% tolerance? |
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Definition
| Government recording charges |
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| When is the appraisal disclosure required to be delivered? |
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Definition
| When a complete application is taken |
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| To qualify for an FHA loan, a borrower without any compensating factors must meet which of the following ratios? |
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| Interest, service charges, transaction charges, buyer's points, loan fees, and mortgage insurance are examples of what is included in the dollar amount called the |
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| Which of the following would be included in an escrow or impound account |
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Definition
| Mortgage insurance premiums |
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| Which of the following cannot be charged to a borrower in an FHA loan transaction? |
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| Which products don't require MI? |
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| A lender who preys upon unsophisticated borrowers in order to strip them of their home equity is engaging in |
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| Subordinate financing relates to |
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| The risk that an agent may not have his client's best interest at heart is called |
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| Who orders table funding "when closing in their own name" |
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| A property that is appraised with a higher than market value results in a(n} |
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Definition
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| A prepaid finance charge consists of |
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Definition
| Loan origination fee, Escrow Processing fee, and Escrow Fee |
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Term
| The lender's risk of loss in the event it has to foreclose is reduced by which type of insurance? |
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| If a lender discovers the fire policy is not in effect they can effect what can happen? |
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| During the term of a fully amortized loan |
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Definition
| the monthly payment to principal increases |
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| What does HUD define as a "referral"? |
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Definition
| A lead generation company worker providing information on a broker to a customer |
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| What is the function of FNMA and FHLMC? |
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Definition
| To buy loans from banks and other lenders |
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Term
| The term "margin" is used frequently when describing terms for an adjustable rate loan. The "margin" is |
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Definition
| the amount the lender adds to a selected index rate. |
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| When a telemarketer calls a person on the do not call list in violation of the do not call regulations, he is subject to a fine of |
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| Borrower with good credit, low DTI, large down payment, and applies for a loan of $800k. They qualify for what type of loan? |
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| A homeowner has a home worth $220,000. He has an outstanding loan of $165,000, and a HELOC with a limit of $30,000, on which he has drawn $12,000. Which of the following is NOT true? |
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Definition
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| RESPA is okay with which of the following types of payment splitting? |
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Definition
| commission split between employees of the same originating broker |
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| Bob needs additional cash to finance expansion of his business as well as pay for a new addition to his house. The collateral for the loan will be a mortgage on his house. The amount of the loan request is $82,000. Bob plans to use $48,000 of the proceeds for his business expansion. This loan will be |
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Definition
| exempt from RESPA because it is a business loan. |
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Term
| What is Fannie Mae (before market changes and gov't intervention)? |
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Definition
| Government supervised but privately owned |
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| Which type of limited documentation does not consider income in qualifying the borrower? |
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| A 15-year mortgage of $225,000 has a fixed rate of 4%. If the origination fee is 1%, what is the amount financed? |
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| For a $300,000, 3/1 ARM with a rate of 6.5%, what would the per diem interest be based on a 360-day year |
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