Question 1

According to the Mortgage Reform and Anti-Predatory Lending Act a mortgage loan originator may only receive compensation that is based on:

Group of answer choices

the varying terms (interest rate, points, etc.).

actual time spent working on the file.

the rate set by NMLS.

the principal amount of a residential mortgage loan.

Question2

In a civil lawsuit brought by a party who has been discriminated against, punitive damages are awarded:

Group of answer choices

to compensate for any loss suffered.

to punish the wrongdoer.

to pay attorney fees.

to pay court fees.

Question3

Redlining is:

Group of answer choices

refusal to lend in certain neighborhoods.

not lending to bad credit customers.

not lending on insufficient collateral.

all of the above.

Question4

Which federal Act gives consumers rights as to who has access to their credit files as well as to know what is in their files and the right to correct inaccurate credit information?

Group of answer choices

The Fair Credit Reporting Act (FCRA)

The Equal Credit Opportunity Act (ECOA)

The Truth in Lending Act. (TILA)

The Consumer Credit Protection Act (CCPA)

Question5

The Fair Credit Reporting Act:

Group of answer choices

does not pertain to real estate transactions.

does not pertain to unmarried individuals.

requires credit reporting agencies to remove all adverse information over 7 years old except for bankruptcies and foreclosures.

does not pertain to collection accounts.

Question6

Regulation Z:

Group of answer choices

allows the right of rescission.

requires that a consumer be provided with the annual percentage rate.

requires proper disclosure of all finance terms in advertising.

none of the above.

Question7

Under Truth in Lending, who is responsible for explaining and compliance with the act?

Group of answer choices

The creditor

The borrower

The arranger of credit

The Real Estate Commissioner

Question8

Which Act forbids kickbacks?

Group of answer choices

The Home Mortgage Disclosure Act (HMDA)

The Truth in Lending Act (TILA)

The Real Estate Settlement Procedures Act (RESPA)

The Equal Credit Opportunity Act (ECOA)

Question9

Under the TRID Rule, the Loan Estimate combines the:

Group of answer choices

Good Faith Estimate and the initial Truth-in-Lending Disclosure.

Good Faith Estimate and the final Truth-in-Lending Disclosure.

Good Faith Estimate and the HUD-1.

HUD-1 and the final Truth in Lending Disclosure.

Question10

Under the TRID Rule, the Loan Estimate must provide the:

Group of answer choices

name and address of the creditor.

address of the property (including the zip code) that will secure the financing.

date the Loan Estimate is mailed or delivered to the consumer.

all of the above.

Question11

As per the TRID Rule, if a creditor provides a corrected Loan Estimate, how long of a new waiting period before consummation of the loan is required?

Group of answer choices

24 hours

48 hours

3 days

7 days

Question12

In reconciling the Closing Statement with the Loan Estimate, "zero tolerance" charges include:

Group of answer choices

fees paid to the creditor or mortgage broker.

fees paid to an unaffiliated third party if the consumer was not permitted to shop for a third party service provider.

transfer taxes.

all of the above.

Question13

In a promissory note, the borrower is called the:

Group of answer choices

payee.

maker.

beneficiary.

none of the above.

Question14

The seller in a real estate land contract is known as the:

Group of answer choices

pawn.

vendor.

vendee.

none of the above.

Question15

A Notice of Default and Election to Sell is prepared by trustee for the benefit of the:

Group of answer choices

tenant.

sheriff.

borrower.

lender.

Question16

A foreclosure that does not have to be taken to court is called:

Group of answer choices

nonjudicial.

nonrecurring.

nonamortized.

all of the above.

Question17

All of the following are true regarding a Notice of Sale, except:

Group of answer choices

the notice must be published in a newspaper.

the notice must be court-ordered.

the notice must be sent to the borrower.

the notice must be posted on the property.

Question18

In a foreclosure under a Deed of Trust the Notice of Sale must be published in a newspaper for:

Group of answer choices

6 weeks.

3 weeks.

5 days.

3 days.

Question19

A sale where the lender accepts less than the amount owed on the existing debt is:

Group of answer choices

known as a "short sale."

not allowed on owner-occupied property.

allowed because of a due on sale provision.

only allowed if approved by the NMLS.

Question20

A clause in a financial instrument that limits a borrower's right to transfer the property without the lender's permission is called a(n):

Group of answer choices

acceleration clause.

alienation clause.

prepayment clause.

none of the above.

Question21

Bankruptcies must be reported if they have occurred within the past:

Group of answer choices

3 years.

7 years.

10 years.

15 years.

Question22

A credit report is:

Group of answer choices

paid for at the time of application.

provided by the borrower.

ordered by the escrow agent.

not necessary.

Question23

The first step in the loan process is:

Group of answer choices

obtaining the credit report.

setting up escrow.

filling out the loan application.

none of the above.

Question24

A borrower must provide employment status for the past:

Group of answer choices

one year.

two years.

three years.

five years.

Question25

Information provided for government monitoring purposes is:

Group of answer choices

required.

highly intrusive.

used for racially redlining borrowers.

entirely voluntary on the part of the borrower.

Question26

An appraiser provides an:

Group of answer choices

opinion of the value of the loan.

opinion of the value of the borrower's credit.

opinion of the value of the property.

all of the above.

Question27

An escrow agent:

Group of answer choices

fills out the loan application.

obtains the credit report.

acts on the instructions of the parties to the loan.

all of the above.

Question28

Real estate loans would be noted on the loan application under:

Group of answer choices

assets and liabilities.

declarations.

details of purchase.

all of the above.

Question29

In processing a loan, a commitment for private mortgage insurance would be required if the down payment was less than:

Group of answer choices

50%.

40%.

20%.

none of the above.