Quvction 26 When considering a borrower's repayment capacity, what should you NOT do? Nat yat angwered Flag quastion Select one: a. Use the borrower's credit score as a substitute for verifying income b. Base the assessment on the fully indexed rate as opposed to the initial rate c. Base the assessment on the initial loan amount PLUS any balance increases over the life of the loan d. All of these Qusction 27 Nat yat answerse Flag question The USA Patriot Act's main goal is to deter and punish terrorism. How does this act relate to the mortgage lending industry? Select one: a. The act prevents money laundering b. The act prevents funding for terrorism through financial transactions c. The act increased borrower identification verification d. All of these Qusction 28 Not yat answerse Flag question Which of the following is an example of mortgage fraud? Select one: a. Deliberately making a typo on the Loan Estimate that makes the loan appear cheaper than it is b. Knowing about someone else committing fraud and not reporting it c. All of these d. Knowingly saying a loan's term is 30 years when it is actually 15 \begin{tabular}{l|l} Quection 36 & The Federal Deposit Insurance Corporation (FDIC) was established by what act? \end{tabular} Not yat answered Flag question Select one: a. The Banking Act of 1933 b. The Gramm-Leach-Bliley Act c. The Fair Debt Collection Act d. The Dodd-FrankAct Quection 37 Nat yat angwened Flag question Ethics is: Select one: a. concerned with actions b. a code of behavior c. about how we behave, rather than why we behave d. all of these Quection 38 Nat yat angwened Flag question A jumbo loan is an example of what? Select one: a. A. high-cost loan b. A nonqualified loan c. A qualified loan d. A. nonconforming loan Qusction 29 Which of the following does that SAFE Act NOT apply to? Nat yat angwened Flag question Select one: a. Insured state non-member banks b. Nonprofit organizations c. Credit unions d. An agency of a foreign bank Quection 30 Nat yat answered Flag question What classification of crime is fraud? Select one: a. It is a federal crime only b. It is a felony c. Fraud can be any classification of a crime d. It is always a misdemeanor, unless there is actual harm Qusction 44 Nat yat ansiwerod Flag question Which of the following regulations ensure fairness in mortgage lending AND prohibit discrimination in the housing industry? Select one: a. Computer Crime Enforcement Act b. The Enhanced Federal Security Act c. The Consolidated Appropriations Act d. The Equal Credit Opportunity Act (ECOA) and the Fair Housing Act (FHA) On December 2020, First Savings Bank, a federally regulated institution, had a home office in a Metropolitan Statistical Area (MSA) and a total of $67.9 million in assets. Is First Savings Bank required to collect and report data for 2021 under HMDA? Select one: a. No, this bank does not meet the the $71 million asset threshold for 2021 b. I can't determine this with the given information c. Yes, this bank meet the criteria and the $48 million asset threshold for 2021 d. No, because this bank is federally regulated Quection 41 Nat yat answered Flag question Which of the following is classified as a "changed circumstance"? Select one: a. New information that is specific to a consumer or transaction which was not relied upon by lender when the loan estimate was being drafted b. An extraordinary event that is beyond the control of an interested party c. An unexpected event that is specific to a consumer or a transaction d. All of these are correct Qusction 42 Nat yat answered Flag question Which regulatory body is in charge of granting and denying MLO licenses? Select one: a. CFPB b. Individual state agencies c. FDIC d. NMLS Qusction 43 Nat yat answersed Flag quastion Which agency has rulemaking authority for the SAFE Act? Select one: a. The CFPB b. The FDIC c. All of these d. HUD Qubction 34 Nat yat ansinered Flag question Under ECOA, what are the appropriate terms to use when asking about an applicant's marital status? Select one: a. Married, unmarried, or divorced b. Married, unmarried, or separated c. Married, single, or widowed d. Married, single, or divorced Quection 35 Nat yat answersed Flag question Which kind of title report is commonly issued during a real estate transaction? Select one: a. A final title report b. A summary title report c. A preliminary title report d. A combined title report Qubction 46 Adam earns a total monthly income of $5,547. He is seeking a standard $61,000 mortgage loan in order Nat yat answered to buy a small house. Currently, he owes $437 on a car loan, \$881 to pay back a credit card debt, and Flag question $519 to pay back student loans. The monthly payment on this loan is estimated to add $1,227 to his monthly debt obligations. Taking the monthly mortgage payment into account, will Adam have enough residual income? (Total Monthly Income - Monthly Debt Obligations = Residual Income) ([Residual Income / Total Monthly Income] x 100 = Percentage of Total Monthly Income) Select one: a. No, because his residual income would be 68.73% of his total monthly income b. No, because his residual income would be 48.37% of his total monthly income c. Yes, because his residual income would be 48.37% of his total monthly income d. Yes, because his residual income would be 68.73% of his total monthly income Quection 47 Nat yat answered Flag quastion A purchase-money mortgage is also known as: Select one: a. HELCO b. Seller financing c. HECM d. Reverse mortgage Quection 48 Nat yat answersed Flag question Banks must report cash transactions over what amount per BSA? Select one: a. $10,000 b. $30,000 c. $25,000 d. $50,000 \begin{tabular}{|l|l} \hline Quection 39 & What is the practice of "redlining"? \end{tabular} Nat yat answered Flag question Select one: a. Redlining is a discriminatory practice that involves lenders refusing to extend credit to borrowers in certain areas of a city b. The process of pushing through a mortgage loan application too fast, in order to avoid higher scrutiny c. The process of drawing red lines on a map to designate areas of high sales potential d. Underwriting a mortgage in an extremely short amount of time \begin{tabular}{|l|} \hline Quection 40 \\ Nat yat answened \\ P Flag question \\ \hline \end{tabular} Which of the following it true about an MLO's unique identifier? Select one: a. It changes every renewal period b. It changes every time an MLO moves states c. If changes every time an MLO's license goes from inactive to active d. It stays the same for life Qubction 49 Nat yat answerod Flag question How to small creditor qualified mortgages ( QMs ) differ from general or GSE-eligible QMs? Select one: a. They have a fee cap of 3 percent for loans over $100,000 b. They have no DTI limit c. They are considered "bad loans" even though they are qualified d. They have a fee cap of $1,000 for loans between $12,500 and $20,000 Quection 50 Nat yat answered Flag question With regard to the limits on points and fees for qualified mortgages, what is the point and fee limit for qualified mortgage loan of $37,000 ? Select one: a. $1,850 b. $1,508 c. $8,015 d. $5,810 Qusction 31 Nat yat anawersd Flag question Flag question Quection 32 Nat yat angwered Flag quastion Flag question Quection 33 Nat yat anawerod Flag question In order for sensitive records to be sent electronically, a lender first needs to get a consumer's: Select one: a. consent waiver b. proof of receipt c. informed assent d. informed consent The FBI divides mortgage fraud into two categories; one is Fraud for profit, what is the other? Select one: a. Fraud for deception b. There is only one type of fraud c. Fraud for concealment d. Fraud for housing Which U.S. agency offers the lowest funding fee to borrowers? Select one: a. The FHFA. b. The VA. c. The FHA d. The USDA