Florida Mortgage Loan Officer Practice Exam

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• How soon must a borrower occupy the home when obtaining a primary residence loan?
• Which documents are considered RESPA early disclosures?
• What does the acronym LTV stand for in mortgage financing?
• What type of disclosure must include a statement that the payment or loan terms can change?
• What factor influences the determination of LTV in mortgage loans?
• Which government-sponsored enterprise is known for purchasing conforming mortgage loans and reselling them in the secondary market?
• What is the acronym COFI commonly referred to in mortgage transactions?
• What law mandates the reporting of cash transactions over $10,000?
• Under what condition are business tax returns not necessary for a loan?
• Why might a creditor be required to clarify an applicant's employment status?
• What does a Prepayment refer to in mortgage terminology?
• To whom does the assignment of a mortgage loan typically transfer its rights and obligations?
• How many days does a creditor have to notify an applicant of its intended action on a loan application?
• Which disclosure provides an itemized listing of costs associated with a real estate transaction?
• What is the purpose of a promissory note in a loan agreement?
• What term is used for a person's financial obligations, which include both long-term and short-term debts?
• What defines a Conventional loan?
• What typically happens to payments on an adjustable-rate mortgage after the initial fixed-rate period ends?
• What does a borrower pledge when signing a deed?
• How soon after placing the Loan Estimate in the mail can the loan close?
• What is the process of examining county and municipal records to assess the legal status of real property known as?
• What is the criminal penalty for violating RESPA?
• What is the amortization method called when monthly payments do not cover all interest, resulting in a balance increase?
• What does RESPA stand for?
• What is the term for a decrease in the value of a property over time?
• What is the potential drawback of a prepayment penalty for borrowers?
• What is the document called that the lender issues upon full repayment of a mortgage loan?
• What does "Absolute Title" indicate about a property?
• What is the primary purpose of a mortgage insurance policy?
• What types of loans may be assumable under the law?
• What does the Loan-to-Value Ratio (LTV) express?
• What is the main purpose of the Fair Credit Reporting Act?
• What defines agency in a legal context?
• According to fair lending laws, which of the following can be asked of loan applicants?
• What rule governs the delivery timeline for the Closing Disclosure?
• What is the name of the reverse mortgage that is insured by the FHA?
• What type of mortgage is specifically taken out for the purchase of residential property?
• In a class action suit, what could be the maximum liability under ECOA?
• What does the acronym MIP stand for in relation to FHA loans?
• Which types of Qualified Mortgages can all lenders originate?
• What is a lien?
• What does a Permanent Buy-Down refer to in mortgage financing?
• How many hours of federal law are required for SAFE Act annual renewal education?
• What is the financial market called where mortgages are bought and securitized by private investors and government-sponsored enterprises?
• What is the term for taking and signing an application, negotiating terms, and collecting documentation for a mortgage loan?
• What is an attorney's opinion of title?
• Verification of deposit (VOD) covers the most recent how many days?
• In mortgage terminology, what refers specifically to the legal agreement between a lender and a borrower for a loan secured by real estate?
• Which statement best describes a Fully Indexed Rate?
• What is referred to as a title that is free of liens and encumbrances?
• How long can a one phone call fraud alert request remain on a credit file?
• What would be a violation of ECOA?
• How many days does a lender have to return all monies paid in connection with a loan after the borrower rescinds?
• Which agency regulates federally chartered savings institutions, formerly known as the Federal Home Loan Bank Board?
• How many days prior to consummation must the borrower review the Closing Disclosure?
• What does liability insurance cover in a homeowner's insurance policy?
• Which department oversees the Federal Housing Administration (FHA)?
• What type of mortgage is specifically designed for borrowers whose credit is not sufficient for conforming loans?
• Who is qualified to estimate the value of real property?
• What is a Warehouse Line of Credit primarily used for?
• What is a mortgage that has priority over all other liens?
• What is the term used to describe the rate that is applied to the cost of borrowing money?
• What is the minimum age to qualify for a reverse mortgage?
• What does lender pre-approval involve?
• When calculating fees for a loan, what is typically referred to as a "discount point"?
• What law identifies a loan as high cost if it exceeds the average prime offer rate by more than 6.5% for first lien loans over $50,000?
• How many hours of ethics are required for the SAFE Act annual renewal education?
• What defines a loan that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac?
• Which of the following is NOT a characteristic of an unsecured loan?
• What is the purpose of a loan-to-value ratio in mortgage lending?
• Which law demands that the APR be displayed prominently when advertising an interest rate?
• What entity insures FHA loans?
• Which component of a mortgage payment includes principal, interest, taxes, and insurance?
• Which document signifies a borrower's commitment to repaying a loan?
• Which of the following would represent an additional term in a real estate contract?
• What type of mortgage is secured by a third party?
• What term denotes property that is pledged as security for a debt?
• Which document protects a lender from misuse of funds by a title company?
• What term describes the legal claim that allows the lender to recover the amount owed from property if necessary?
• What document confirms an individual's ownership of a property?
• Which cap limits the amount the interest rate can increase during the first adjustment period for an ARM?
• Which type of estate provides a husband and wife with equal possession rights, with the surviving spouse receiving full possession upon the death of the other?
• What type of fee is included in VA mortgage insurance?
• What type of loan is often characterized by lower initial payments with potential for negative amortization due to payment caps?
• What is the primary role of a Mortgage Banker?
• What does a borrower receive upon signing the Loan Estimate?
• Which of the following best defines a sales contract?
• What is a claim against real property that can affect ownership transfer?
• Which of the following describes joint tenancy in property law?
• Who is referred to as the mortgagee in a mortgage agreement?
• Which factor is NOT considered when determining if the Ability to Repay (ATR) requirement has been met?
• For the USDA/RHS loans, how is the maximum financing amount determined?
• What does the acronym SRP stand for in the mortgage industry?
• If five siblings own a property, how many must submit a rescission notice to void the loan in a refinance transaction?
• What term describes items of value owned by an individual?
• What does the term default refer to in a mortgage context?
• What action allows homeowners a three-day period to cancel a mortgage contract after closing?
• What is the permanent interest rate for a borrower using a FHA 2/1 buydown with a starting rate of 4.5%?
• What type of mortgage is insured against the borrower's default by the FHA?
• What is a Mortgage in real estate terms?
• What is the disclosure provided 3 business days before consummation that lists all costs associated with a real estate transaction?
• How is the age requirement for a reverse mortgage defined?
• What is a Lump Sum in the context of loans?
• What aspect of a mortgage does the finance charge represent?
• Which of the following best describes the role of a Mortgage Broker?
• What is a Fixed Rate Mortgage?
• What does the Annual Percentage Rate (APR) represent?
• Which type of mortgage typically has a lower initial interest rate but adjusts after a specified period?
• What type of deed transfers ownership without any guarantees or warranties?
• In context to FCRA, what is essential for maintaining public trust in the credit reporting system?
• What transactions still require the RESPA GFE and HUD-1 after the TRID changes?
• What is a jumbo loan?
• Which entity is responsible for consumer protection according to the Dodd Frank Act?
• What type of mortgage has an interest rate that is adjusted periodically?
• RESPA does not cover loans over how many acres?
• What is the process where the interest rate is guaranteed for a period of time?
• What document provides an estimate of closing costs to mortgage applicants within a specific timeframe?
• How long can a bankruptcy be reported on a credit report under FCRA?
• For rescinding a loan transaction, which days are excluded from the definition of "business days"?
• What financial condition is defined as the inability to pay one's debts and applying to the courts for relief?
• Which statement best describes a loan originator?
• The national test consists of how many questions total with how many being scored?
• What percentage coverage is Fannie Mae's insurance coverage based on?
• What type of loan is used to facilitate the purchase of a new home before the sale of the current home?
• What is the term used when a borrower's compliance with mortgage terms extinguishes the lender's interest in the property?
• A loan that exceeds the HOEPA thresholds for APR and points and fees is considered what type of loan?
• How many days does a lender have to send a check for the surplus amount after the annual escrow account analysis?
• What is a market instrument that fluctuates with market conditions?
• What term describes the total amount due, including principal and any unpaid interest along with fees or penalties owed?
• What is the term for a reduction in the interest rate as part of a financing arrangement called?
• Which act specifically relates to the disclosure of affiliated business arrangements?
• If a person is prosecuted for discrimination against a handicapped individual in a housing context, which law applies?
• What does the Closing Disclosure outline?
• When a borrower fails to make loan payments, which clause may be invoked by the lender?
• Which section of RESPA addresses kickbacks and excessive fees?
• In which situation would a RESPA early disclosure not be needed?
• What is the published interest rate used to adjust the note rate of an ARM called?
• How is the combined ratio of all mortgage costs to the home value expressed?
• What law provides consumers the option to prevent their information from being shared with certain third parties?
• What is the fee charged as a percentage of the loan amount to reduce the mortgage interest rate?
• Which law prohibits advance fees on loan modification services before lender approval?
• What does net effective income represent?
• What best describes the COFI index?
• What is the term for a credit arrangement allowing a consumer to be pre-approved for a line of credit?
• Which of the following loans is specifically designed for individuals with lower credit scores?
• What is the legal document called that authorizes someone to act on behalf of another?
• What is the requirement for providing an adverse summary notice under the Equal Credit Opportunity Act (ECOA)?
• Which law mandates the reporting of suspicious activity within the financial industry?
• Which term describes a decrease in continuing payments like rent?
• What is the term for the loan amount guaranteed by the VA when extending a loan to a veteran?
• Which act primarily focuses on preventing mortgage fraud and ensuring consumer protection?
• Which index is also used for adjustable-rate mortgages aside from LIBOR?
• In the context of mortgages, what does 'impounds' refer to?
• Which type of loan might be used to finance an amount exceeding the GSE's loan limits?
• In mortgage lending, who is referred to as a donor?
• What does an initial rate cap refer to in an ARM?
• What does the adjustment period refer to in an ARM?
• What type of insurance is typically included in escrow payments?
• Which of the following is NOT included in the origination fee?
• How does mortgage insurance benefit lenders?
• How is a first mortgage typically categorized?
• Which sections of RESPA were amended by TRID?
• What must lenders provide to borrowers according to the Equal Credit Opportunity Act (ECOA)?
• What is a third party agent that receives, holds, and/or disburses certain funds or documents upon the performance of certain conditions?
• What does PMI stand for in the context of mortgage insurance?
• What term describes total debts as a percentage of gross monthly income?
• What is the potential prison time for mortgage fraud?
• What term refers to the lender's profit added to the index to determine the par rate or fully indexed rate?
• What is a penalty associated with paying off a mortgage before the scheduled due date?
• What is the common goal of both Buyer's and Lender's Title Policies?
• This loan product is typically for borrowers of 62 years old who have built substantial equity or have paid their home in full and wish to cash out the equity in their home?
• What is the process called when examining the information provided by a loan applicant?
• How many hours of non-traditional lending products are required in the SAFE Act pre-license education?
• What is the definition of a creditor?
• Which entity is NOT a part of the federal housing program framework?
• For standard VA financing, what are the housing payment and total debt ratios as a percentage of gross monthly income?
• When are RESPA early disclosures required to be provided?
• Which insurance type provides protection for homeowners against claims from construction liens or unreleased mortgages?
• What is the purpose of a Verification of Deposit (VOD) in mortgage lending?
• What is the passing score for the SAFE Act?
• The Truth-In-Lending Act is Title what of the Consumer Credit Protection Act?
• How is a basis point calculated?
• Which financing option allows low and moderate-income buyers to lease a home with an option to buy?
• Which term is used to refer to a junior lien?
• Which three items should a lender/underwriter consider when deciding on a credit application?
• What is the primary purpose of the Loan Estimate?
• What is the tolerance category for most third-party fees?
• What is the legal document that pledges a property to the lender as security for a debt?
• What type of lender uses its own funds to close loans but generally does not service them?
• How many days must seasoned funds be in the bank to qualify as seasoned?
• A revised Loan Estimate must be delivered to the applicant no later than how many days prior to consummation using the mailbox rule?
• What does the term 'balance' refer to in mortgage terms?
• What are excess fees that might be included in a borrower's overall costs for obtaining credit?
• What is considered a 'good' credit score range for obtaining a mortgage?
• What type of transaction involves a property seller providing all or part of the financing?
• What does a conversion clause in an adjustable-rate mortgage (ARM) allow?
• What is it called when the full interest expense is not paid and is instead deferred, increasing the total amount owed?
• Which type of mortgage is subordinate to the claims of other recorded mortgages?
• What is the basis point conversion for a discount point?
• Which section of RESPA covers the servicing disclosure requirements?
• What does an amortization schedule show?
• According to TRID, what is considered a zero tolerance item on the Loan Estimate?
• Which of the following terms best describes the act of reassigning a mortgage from the lender back to the borrower?
• When should an applicant receive the Loan Estimate?
• What is the primary purpose of a mortgage?
• What act preempted states from limiting loans to only fixed-rate products?
• What type of mortgage provides a line of credit that can be drawn upon as needed until the maximum amount is reached?
• What is the process of transferring the title of real estate from one party to another called?
• Which agency was created by Congress to specifically deal with the purchase of mortgage loans and related securities?
• What is the upfront fee paid to the VA on a VA guaranteed loan called?
• What process is used by lenders to adjust mortgage payments, often in the case of Option ARMs?
• What term describes the voluntary surrender of property, owned or leased?
• Why is it important for lenders to provide a Loan Estimate?
• The process of converting mortgage loans into securities is known as?
• What is the process of pooling similar types of loans to create mortgage-backed securities for sale called?
• For how many years can other derogatory credit be reported?
• USDA loans are primarily for properties located in?
• Which cap specifically limits how much the interest rate can change during adjustment periods of an ARM?
• For a first lien loan to be classified as a Higher Priced Mortgage Loan (HPML), the APR must exceed the Average Prime Offer Rate (APOR) by what percentage or greater?
• For a VA loan, what typically represents a one-time charge for securing loan benefits?
• What does Foreclosure entail for a borrower?
• What is defined as the amount of cash generated from an income-producing property over time?
• What is the Fannie Mae electronic underwriting system called?
• What does it mean to Float in terms of mortgage interest rates?
• What do Fannie Mae and Freddie Mac have in common?
• What is the purpose of a periodic rate cap in an adjustable-rate mortgage (ARM)?
• What is an Escrow Account typically used for?
• Which regulation is associated with the Graham, Leach, Bliley Act (GLBA)?
• Which federal law requires lenders to disclose the cost of credit in a uniform manner?
• Which loan program directs the borrower's payments solely towards the interest due on the loan?
• Which term refers to the oldest lien against a property?
• How many business days before consummation must the last revised Loan Estimate be delivered?
• Upon completing a loan application, how long does ECOA allow for a credit decision to be made?
• What does the Housing Expenses-to-Income Ratio express?
• What is a non-traditional loan?
• What is the name of a lending arrangement where mortgage brokers can originate, close, and fund loans using the funding lender's money?
• Which laws were amended to create the new TRID rule?
• For income to qualify, it must meet the likelihood of continuance test for how many years?
• How many years can a borrower get a prorated refund of FHA mortgage insurance when refinancing from one FHA loan to another?
• What is the loan-to-value ratio?
• Which entity typically requires escrows in a conventional mortgage?
• What is the mortgage market primarily known for originating loans to consumers called?
• For which loan types is the Good Faith Estimate no longer required?
• The adjustment in loan terms during a refinance primarily reflects changes in what?
• What is the purpose of a deed of trust?
• Which government-owned entity guarantees principal and interest payments to mortgage-backed securities investors?
• What type of clause in a property lease gives the tenant the first option to purchase the property in case of sale?
• If there is an ARM loan, how many business days must the CHARM booklet and specific ARM program disclosure be delivered to the borrower after receiving the application?
• Which law requires an annual escrow disclosure if escrows or impounds are involved?
• Which organization typically requires private mortgage insurance when the loan-to-value ratio is high?
• What does a cloud on title refer to?
• What happens if a mortgage payment is not made on time?
• How many sections are included in the 1003 loan application?
• What is the Fair and Accurate Credit Transactions Act (FACTA) known for?
• What is the purpose of a Pledged Account Mortgage (PAM)?
• What is the basic entitlement amount for a veteran?
• What is defined as the cost of credit expressed as a dollar amount?
• Which terms are synonymous with "caps" in relation to financial instruments?
• What type of cap limits the change in payment amounts during a specific adjustment period on an ARM?
• What provision does the Fair Credit Reporting Act (FCRA) permanently extend?
• What is typically included in a homeowner's insurance liability policy?
• What is a Certificate of Title?
• USDA, FHA, and VA are all guaranteed by which of the following?
• Which two characteristics does ECOA protect that are not covered by the Fair Housing Act?
• If there is a surplus in a borrower's escrow account greater than $50, what must the lender do?
• What is the document called that provides an estimate of closing costs and must be given to mortgage applicants within three business days of a loan application, per TILA-RESPA requirements?
• What is the maximum loan term allowed for Qualified Mortgages?
• What type of mortgage adjustment allows for periodic changes to the interest rate based on market conditions?
• If a QM loan is not protected by Safe Harbor, what could a consumer do?
• What financial statement shows a borrower's income, expenses, and overall financial status?
• Which term refers to a local tax levied against a property for a specific purpose?
• What is the tolerance for origination fees in a mortgage?
• What is a wrap-around mortgage?
• What is the fee paid to a lender at closing that provides the borrower with a lower note rate?
• What is typically the frequency of adjustments in an Adjustable Rate Mortgage?
• What is the name of the Government Sponsored Enterprise that buys and sells residential mortgages?
• What section of RESPA regulates escrow and impound accounts?
• Which score is developed by Fair, Isaac and Company and is widely used for credit scoring?
• What is the form number for the Closing Disclosure?
• What percentage of vested interest in a retirement account can be used for reserves?
• Which act determines that a borrower must have no 60-day late payments in the past 24 months to qualify for PMI cancellation?
• What is the type of mortgage insurance that protects lenders from borrower default in conventional loans?
• Which document is primarily designed to assist and inform borrowers regarding adjustable-rate mortgages?
• What does a conventional loan typically require?
• A loan referred to as a 30/15 and 180/360 represents which type of mortgage?
• Which section of RESPA prohibits kickbacks and excessive fees on federally related mortgage loans?
• Which term refers to safeguards that limit the interest rate on an adjustable-rate mortgage (ARM)?
• What is the outcome of a mortgage application if the borrower does not meet the criteria set by the lender?
• What is the term for a fee charged when a borrower repays a loan early?
• What is the term for removing a lien from property upon full payment?
• When must the closing disclosure be re-disclosed, requiring a new three-day waiting period?
• What is a deed?
• In a real estate context, what is an "asset" primarily referred to as?
• Which law requires a borrower to escrow for flood insurance if they are already escrowing for taxes and insurance?
• What is the legal process called that forces a sale of mortgaged property due to non-repayment of mortgage terms?
• After transferring a loan, how many days does a servicer have to notify the borrower in writing?
• What are the expenses called that are incurred during the transfer of ownership of a property?
• What is the term for making current an existing Title Abstract?
• What is the purpose of earnest money in a real estate transaction?
• Which of the following is typically not included in a credit report?
• Which act emphasizes transparency in the lending process and requires disclosures to borrowers?
• What is a representative credit score based on?
• What is the requirement regarding refunding an overage in an escrow account?
• What is one of the main purposes of the Home Mortgage Disclosure Act (HMDA) and Regulation C?
• Which law involves the deregulation of interest rates on loans?
• What is the minimum number of business days a borrower has to accept the estimate of charges on the Loan Estimate?
• What is a document that provides a precise measurement of land and its features, as prepared by a registered professional?
• What is the process called that outlines required payments including principal and interest over time?
• Which type of insurance protects against fire, burglary, and other specified losses?
• What term is used for a legal wrong committed that may result in a financial loss to another party?
• What is the primary purpose of the TILA-RESPA Integrated Disclosure Rule (TRID)?
• In mortgage lending, what term is used for the borrower's ability to repay the loan?
• If a borrower has a score below what amount, the lender will not underwrite a loan?
• What is it called when a lump sum is due because the amortization schedule did not pay out the mortgage?
• What is the term for the transfer of real estate title from one party to another?
• In what situation can a lender legally discriminate based on age?
• In which type of Qualified Mortgage would a lender need to enhance underwriting standards for a DTI over 43%?
• What type of mortgage is recorded after, and is subordinate to, the first mortgage?
• Under which act are lenders required to evaluate a borrower's creditworthiness without discrimination?
• The Closing Disclosure is primarily used for what purpose?
• What is the lender's procedure to recover the loan amount due to borrower default?
• Which organization is often associated with the secondary mortgage market?
• What is the main benefit of a Verification of Employment for lenders?
• What is the "Cost Approach" in appraisal standards?
• Which of the following documents is designed to help borrowers compare loan options?
• What law prohibits the payment for referral services between settlement service providers?
• What is the primary role of the Financial Crimes Enforcement Network (FINCEN) regarding suspicious activities?
• When did the TRID regulations go into effect?
• What is Flood Insurance used for?
• What characterizes loans made to borrowers with good credit scores and low debt ratios?
• If a loan is associated with a loan amount less than $50,000, what percentage above APOR qualifies it as high cost?
• What is referred to as a claim or encumbrance on a property title?
• What is a defining characteristic of a balloon mortgage?
• What does UFMIP stand for in the context of FHA loans?
• What is the purpose of a loan-to-value ratio in mortgage lending?
• What is the conventional conforming loan limit for a single-family unit?
• Which type of residential development includes shared common areas for residents?
• What is the primary goal of the Telemarketing Sales Rule?
• What is the upfront guarantee fee on a USDA loan?
• What is required before a lender can finalize a loan modification under MARS?
• What does title insurance protect a borrower against?
• What is true about a secured loan compared to an unsecured loan?
• What does the borrower have to offset to determine their net effective income?
• What law requires large depository institutions to report their loan application records annually?
• What federal agency is responsible for housing programs and regulates various housing-related federal statutes?
• What type of policy is a declining term life insurance used to insure loan repayment in case of the borrower's death?
• What is the tolerance for a fee that the borrower must pay but is not allowed to select the service provider, such as the appraisal fee?
• What information is essential to consider a loan application complete?
• Under which section of RESPA are escrow collection and other requirements covered?
• Which of the following best describes an interest-only loan?
• What is failing to meet the monthly interest expense and deferring the outstanding amount to a future date called?
• What does an appraisal provide an estimate of?
• What is the primary role of the Federal Housing Administration (FHA)?
• What type of lien is junior or subordinate to another lien?
• What term is used for a mortgage that is subordinate to other mortgages recorded against a property?
• Which organization is best known for purchasing and securitizing residential mortgages?
• What type of mortgage maintains the same interest rate throughout its duration?
• What is the potential penalty for violating RESPA?
• In a mortgage context, who is the mortgagor?
• What is the legal term for when a borrower officially commits to a real estate transaction?
• What does it mean when a lender allows a borrower a period of forbearance?
• In a refinance transaction, which option allows the borrower to receive cash back of $2,000 or 2% of the loan amount, whichever is lower?
• What is required for reporting Suspicious Activity Reports (SARs) according to regulation?
• Which of the following is a requirement of the Real Estate Settlement Procedures Act (RESPA)?
• In real estate, what does the term ‘liability’ generally refer to?
• What does the term "escrow account" refer to in mortgage lending?
• In terms of mortgage loans, what does the term 'Funding' specifically relate to?
• In which scenario does a fee fall under the zero tolerance category?
• What is a Planned Unit Development (PUD)?
• What legislation prohibits lenders from rejecting applications based on race or color?
• What is the document that outlines a borrower's credit history and current credit standing?
• The TILA/RESPA Integrated Disclosure Rule amends which RESPA sections?
• Which of the following is NOT one of the 4 Cs used in assessing Ability to Repay?
• What does the term "satisfaction of mortgage" refer to?
• What is required from a veteran to verify their eligibility for a VA loan?
• In the event of default, what percentage of $424,100 will VA guarantee?
• What is the minimum credit score required for Fannie Mae and Freddie Mac?
• What term describes the process of reducing debt through periodic payments?
• ECOA mandates a notice of action taken be provided within how many days of receiving a credit application?
• What is the term for a fee charged by lenders, equivalent to 1% of the loan amount?
• What term refers to interest charged in excess of the legal limit set by state law?
• What financial document outlines loan terms before closing?
• What do prepaid expenses include when setting up an escrow account?
• What type of mortgage involves a lender making payments to the borrower based on their equity, with repayment deferred?
• Who is referred to in mortgage lending as the one who provides gifts of money for home purchases without expecting reimbursement?
• Under what condition can a mortgage be assumed by a new buyer?
• Which component of a mortgage usually changes over time within the structure of an ARM?
• What is the term for a clause in a lease that allows a tenant the first opportunity to purchase the property?
• What is the term for the transfer of rights and obligations under a mortgage from one party to another?
• The Red Flag Identity Theft program was developed by which organization?
• What is the implications of a mortgage being assumable?
• Which type of loan often requires mortgage insurance regardless of the down payment amount?
• What type of mortgage allows for paying off the loan every two weeks?
• Which of the following is a duty of the CFPB related to ECOA?
• What percentage of the loan amount makes it a "high cost loan" under HOEPA?
• In the context of mortgages, what does "TILA" stand for?
• What is the term used for an organization that collects and maintains financial information on individuals for credit evaluation?
• What role does the VA play for a loan?
• According to the ECOA, how long must records be retained?
• Which of the following is a key feature of a VA Loan?
• What is a key function of a Mortgage Broker?
• How many owner-occupied loans must a non-depository institution close to be subject to HMDA reporting?
• What type of loan is used for the construction of homes or buildings, characterized by interest-only payments?
• What percentage of a stock portfolio account can a borrower use for reserves?
• Which disclosure relates to the borrower's right to receive an appraisal copy?
• What type of real estate property rights does a buyer acquire when they purchase a property?
• Which law ensures consumers have access to their credit reports?
• Which index is commonly used in the residential mortgage industry for adjustable-rate mortgages?
• What is a Firm Commitment in mortgage terms?
• Which loan type is guaranteed by the Department of Veterans Affairs for qualified military individuals?
• What is the appraised value of a property based on?
• What type of property right does a buyer have when they acquire property they have been leasing?
• Which loan type conforms with established lending limits?
• What is the name of the fee charged by a lender to originate a loan?
• What agency is referred to as FINCEN?
• What is an early payment made by the borrower reflective of?
• What portion of the total monthly mortgage payment is applied toward principal and interest?
• For how long must entities making residential mortgage loans maintain records according to ECOA?
• Which document can indicate a borrower's ability to manage current financial accounts?
• What is a temporary loan where the borrower may sell a home to purchase another?
• What does the Fair Credit Reporting Act (FCRA) aim to ensure?
• Which foreclosure process is initiated by the lender filing a lawsuit in court?
• What is one primary purpose of zoning regulations?
• What is the process of cancellation of a contract in relation to mortgage refinancing called?
• Which law is primarily focused on consumer protection in residential mortgage lending?
• What does a rate cap do in relation to an Adjustable Rate Mortgage?
• What is the process called where loans are bought on the secondary market, pooled, and sold as securities?
• What is an encumbrance in real estate?
• What is the purpose of the Bank Secrecy Act?
• By what time must a borrower notify the creditor of any intent to rescind on a loan?
• Regulation C implements which law pertaining to mortgage disclosure?
• What was the 2017 standard conforming loan limit for a single-family property?
• What type of agreement helps avoid litigation in case of disputes?
• Which of the following terms refers to a clause that allows the lender to accelerate repayment upon default?
• What benefit does the FHA provide in terms of mortgage insurance for refinancing?
• What is the penalty for violations of the Real Estate Settlement Procedures Act?
• What does an Attorney's Opinion of Title certify?
• What term describes the property pledged as collateral for a loan?
• What is a characteristic of loans categorized as prime loans?
• What information must be provided in writing to a borrower who has been denied a loan under ECOA?
• What does "character" refer to in the context of the 4 Cs of lending?
• What does amortization require from borrowers?
• What amount surplus in an escrow account requires the lender to send a check to the borrower?
• Which document is typically used instead of a mortgage in some states?
• What type of loans does the Federal National Mortgage Association (Fannie Mae) purchase?
• What is the primary function of the Federal Housing Administration (FHA)?
• What is private mortgage insurance (PMI) typically required for?
• Which law allows consumers to register their phone numbers to avoid telemarketing calls?
• What is the name for the fee that is calculated as a percentage of the loan amount charged by the lender to cover the costs of making the loan?
• How does a Waiver affect a borrower's rights?
• What is one common characteristic of conventional loans?
• In which situation might a borrower be required to pay MIP?
• Which mortgage is specifically designed for seniors wanting to convert their home equity into cash?
• Which law stipulates a minimum closing period of 7 days after early disclosures are given to the borrower?
• What does a non-assumption clause in a mortgage contract do?
• Redlining is associated with which major legislation?
• Why are FHA loans seen as beneficial to lenders?
• According to which law is a loan identified as high cost if the points and fees exceed 5%?
• Which term refers to the insurance that allows for default protection on loans?
• What is the fee paid by borrowers for mortgage insurance on an FHA loan known as?
• What does LIBOR stand for in the context of adjustable-rate mortgages?
• What is the period allowed to provide a refund for a tolerance violation on the Loan Estimate?
• What type of fees does the Loan Estimate indicate are non-negotiable under TRID?
• What is the primary focus of the Truth-In-Lending Act (TILA)?
• Which of the following best describes an ARM?
• What does RESPA stand for?
• What is the purpose of an earnest money deposit in a real estate transaction?
• What are Fee Triggers in the context of mortgage loans?
• What is the time period for a consumer to bring a case against a lender for failing to meet the ATR requirement?
• What does the term "equity" refer to in real estate?
• Who is typically responsible for arranging funding or negotiating mortgage loans for borrowers?
• What is the nature of an adjustable-rate mortgage?
• What are fee triggers in relation to mortgage loans?
• What do lenders typically assess when deciding to purchase loans in the secondary market?
• What is the significance of the loan-to-value ratio in mortgage lending?
• How many basis points are equal to one discount point?
• What would best help an appraiser determine a home value using the sales comparison approach?
• What is the purpose of Flood Insurance?
• Under what circumstance may a lender rightfully refuse an application from a potential borrower?
• What is defined as the state of having failed to make payments on time, potentially leading to foreclosure?
• What is described as a title that is clear of any liens, judgments, or other encumbrances?
• What is the term for the time period between adjustment dates for an ARM?
• Which of the following is true about conventional loans?
• What type of fee is commonly included in a mortgage Finance Charge?
• What was the primary purpose of the Red Flag program?
• What does the term FICO Score refer to?
• What does the acronym Fannie Mae represent?
• What is the individual civil penalty range for violating TILA/Reg. Z?
• What is a deposit used in a real estate purchase agreement?
• Which condition is usually associated with a Higher Priced Mortgage Loan (HPML)?
• What is the term for funds given in advance to show committed interest in purchasing a property?
• Which two titles are used interchangeably to refer to laws related to the cost of financing?
• According to which laws is any day that a creditor's office is open considered a business day?
• What type of loan allows for 100% financing?
• What must lenders ensure when evaluating a borrower’s application according to ECOA?
• What is the primary purpose of an escrow account?
• In mortgage terms, what is a Finance Charge?
• What is margin in relation to an adjustable-rate mortgage?
• What term is used to describe a law enacted by a legislative body?
• What title of the Consumer Credit Protection Act is the Fair Credit Reporting Act (FCRA)?
• What is the term for the part of a mortgage payment that reduces the loan balance?
• What term describes real estate that is free and clear of any claims or encumbrances?
• What should a Mortgage Loan Officer do if a borrower reveals plans to commit fraud?
• What is a fundamental characteristic of Joint Tenancy?
• According to standard conventional financing, what are the housing payment and total debt ratios as a percentage of gross monthly income?
• Which federal law requires lenders to disclose the cost of credit using uniform standards?
• A 30-year mortgage with a 15-year balloon would have payments based on ____months and the loan would be due in____ months:
• Which type of mortgage is not insured by the FHA or guaranteed by the VA?
• What is the maximum points allowed with a Qualified Mortgage (QM) for a loan amount of $110,000?
• Which of the following best describes a Closing Disclosure?
• Which type of Adjustable Rate Mortgage (ARM) has a monthly payment sufficient to amortize the remaining balance?
• What is a primary function of underwriting in mortgage loans?
• What type of mortgage allows the lender to make periodic payments to the borrower using the borrower's equity in their home?
• In mortgage terminology, who is the individual that gifts money for a home purchase without expecting repayment?
• In what situation would a second mortgage typically be used?
• What does ECOA stand for?
• What term describes the good faith action taken in real estate transactions without fraud?
• What is the maximum seller contribution for an investment property?
• What is the primary demographic targeted by USDA loans?
• What type of lender uses its own funds to close loans but generally does not service those loans?
• What requirement does the National Flood Insurance Program impose on borrowers?
• What is the concept of 'fully indexed rate' most closely related to?
• Which term describes the right to use part of another person's property, commonly seen as a right of way?
• Which law focuses specifically on financial privacy and customer information?
• What is the IRS form number a lender uses to obtain a copy of a borrower's tax transcript?
• What regulation outlines specific requirements that a lender must follow under the Truth-in-Lending Act?
• What type of insurance protects against a lender's loss resulting from title defects that should have been cleared beforehand?
• What type of loan is characterized by draw payments and interest-only payments during the construction period?
• Which entity, created under the Dodd-Frank Act, is responsible for consumer protection?
• Which document is typically required to finalize a mortgage transaction?
• Which of the following is NOT a characteristic of a construction loan?
• Which forms were integrated to create the Loan Estimate?
• Which enterprise is often referred to as Fannie Mae?
• What is the abbreviation for the Home Mortgage Disclosure Act?
• In mortgage calculations, which of the following is NOT included in the PITI calculation?
• What consumer protection limits the changes in interest rates on an Adjustable Rate Mortgage (ARM)?
• What scenario would typically trigger repayment in a Reverse Mortgage?
• What does Pre-Approval signify in the mortgage process?
• What is the primary function of the Truth-In-Lending Act?
• How many years must mortgage loan compensation agreement records be retained?
• If an interest rate is locked after the Loan Estimate has been delivered, how long does the lender have to deliver the revised Loan Estimate to the applicant?
• What law implements the Real Estate Settlement Procedures Act (RESPA)?
• If a borrower is denied a loan due to not meeting credit score requirements, what must the lender provide?
• What term describes the stated interest rate on a mortgage or loan agreement?
• A lender with a lien in first position has priority over other liens, except for which of the following?
• Which type of insurance protects a homeowner from rights affected by past ownership of the property?
• What is the process called where real estate funds change hands and legal documents are executed?
• What is the term for the period during which a party can fail to perform contractual obligations without being considered in default?
• Which type of mortgage involves periodic payments and a final large payment that exceeds the earlier ones?
• What is one purpose of a Loan Estimate provided to mortgage applicants?
• During closing, what are borrower's credits?
• What is a mortgage loan obtained for purchasing residential property called?
• What term describes personal property that is not considered real property?
• What instrument warrants that the title is clear and free of encumbrances?
• What is the primary purpose of escrow in a mortgage context?
• What does the acronym PITI stand for in relation to monthly housing expenses?
• A temporary 2/1 buydown loan reduces the note rate by what percentage in year two?
• What law specifically addresses issues related to identity theft?
• What is the main purpose of the Mortgage Assistance Relief Services law?
• What is a payment cap in an ARM?
• What report includes chronological ownership history related to a specific property?
• Which of the following best describes the Application Fee?
• What would take a Qualified Mortgage (QM) loan out of Safe Harbor protection?
• What types of loans do FNMA and FHLMC typically securitize?
• Can multiple revisions of the Loan Estimate be made before consummation?
• What do you call the act of giving up property back to a lender or applicable figure?
• Which law is associated with the FTC's Red Flag Identity Theft Program?
• What type of mortgage usually covers more than one parcel of land allowing for individual releases from liability?
• What features are NOT included in Qualified Mortgages?
• What is the term for the final lump sum paid at the end of a balloon mortgage term?
• What primary aspect does the Fair Credit Reporting Act (FCRA) address?
• Which type of loan allows borrowing against the current home to purchase a new house?
• What does TIP stand for in the context of new TRID disclosures?
• Which term refers to a mortgage's ability to accommodate both residential and commercial properties?
• Which entity is known for securitizing mortgages made by primary mortgage lenders?
• What type of insurance is used to ensure loan repayment in the event of a borrower's death?
• What does the term 'Waiver' refer to in mortgage lending?
• What is a lender's guarantee that the interest rate quotes are valid for a specific number of days called?
• In a Home Equity Line of Credit (HELOC), what generally positions it in relation to the first mortgage?
• What is the typical timeframe for verifying recent earnings for a mortgage application?
• Which principle does ECOA emphasize regarding loan applicants?
• How is a residential loan classified if the APR exceeds the APOR significantly?
• Which organization is responsible for setting guidelines and rules for ECOA?
• What distinguishes Freddie Mac and Fannie Mae from GNMA?
• What does a loan processor verify about an applicant's income?
• What type of account is typically secured by real estate and is subordinate to the first mortgage?
• What name is given to a mortgage loan that is backed or insured by a government agency?
• What term refers to the interest rate of an adjustable-rate mortgage at the time of closing?
• What does FEMA stand for?
• Why is the Annual Percentage Rate (APR) important to borrowers?
• What is the term for the part of a mortgagor's monthly payment that is held to cover taxes and insurance?
• What is used to determine the interest rate change on an Adjustable Rate Mortgage (ARM)?
• Which of the following is a consumer protection feature in an ARM?
• What legislation requires lenders to give clear disclosures about mortgage terms to borrowers?
• What type of ownership allows individuals to own their building or unit while sharing ownership of common areas with other members?
• Which law requires states to ensure loan originators are registered or licensed?
• What type of disclosure must be included within the Loan Estimate in relation to servicing?
• What does it mean when a property has a good adjusted basis?
• In a judicial foreclosure, who initiates the process?
• What is the Fannie Mae form number for the Uniform Residential Loan Application?
• What is the term used for the closing process under RESPA?
• What is the term for a situation where ownership of real estate is compromised by liens or unsettled claims?
• In a credit arrangement where a consumer is pre-approved for a line of credit, what is this type of debt called?
• Which type of mortgage is typically considered to be a long-term loan, spanning ten years or more?
• What is defined as an opinion of a property's fair market value based on an appraiser's analysis?
• A borrower elects to have a 2/1 buydown on an FHA loan at 6.5% fixed interest rate. What will the permanent interest rate be?
• What is the name given to a lien on property that is junior to another lien?
• What is the term for a promise by one party to pay a debt or perform an obligation if another party fails to do so?
• Which method is used to express the cost of financing by comparing the loan amount to the total payments made over time?
• What type of lien is placed on a property title due to the failure to pay property taxes?
• After the annual escrow account analysis, what happens if the surplus is below the required amount?
• Who is responsible for evaluating and deciding on loan applications for lenders?
• What legal action can a borrower take if they believe a lender did not properly assess their ability to repay?
• Which act, enacted in 2003, permanently extended the provisions of the FCRA?
• What is the minimum cash investment required from a borrower on an FHA loan?
• Which of the following is a necessary action for properties in federally designated flood zones?
• What is the primary purpose of a mortgage commitment?
• What does the term 'Void' indicate in legal agreements?
• For how many days from the date of transfer may the new servicer not charge a late fee to the borrower?
• What is the name of the public corporation that insures depositor's deposits in member banks?
• Which term describes the income of a borrower before taxes and expenses are deducted for qualifying purposes?
• How many monthly payments are there in a bi-weekly payment plan?
• How many elective hours are required in the SAFE Act pre-license education?
• What is an FHA Loan?
• What document provides a breakdown of how each payment will affect interest, principal, and remaining balance?
• What does the term 'sweat equity' specifically refer to in real estate?
• What is the purpose of a mandatory arbitration agreement in a contract?
• What is one of the main purposes of the CHARM booklet in relation to ARM loans?
• What is a Warehouse Fee in mortgage lending?
• If the loan-to-value (LTV) is 90% or greater, what is the maximum seller contribution percentage?
• The SafeGuard Rule requires companies to maintain what type of program?
• What is an index used in adjustable rate mortgages?
• What financing option allows low and moderate-income home buyers to lease a home with the option to buy?
• What term refers to funds given in advance to demonstrate commitment to purchasing a property?
• Which government-sponsored enterprise was created by Congress to purchase conforming mortgage loans and resell them in the secondary market?
• What do we call things that a person owns that can be converted to cash?
• Who typically arranges funding or negotiates mortgage loans for borrowers?
• What type of loan features an interest rate that can adjust monthly and offers multiple payment options?
• What is the purpose of the Home Mortgage Disclosure Act (HMDA)?
• What is the main purpose of amortization in a loan?
• Which term specifically relates to the change in loan payments when negative amortization occurs?
• What is an interest rate buy down for a temporary period of time called?
• What term describes the date on which the principal balance of a loan becomes due and payable?
• What term describes the actual interest rate specified in a mortgage or loan agreement?
• What is a mortgage that uses at least two pieces of real estate for security called?
• What may result from a payment cap on an ARM?
• Who can function as a mortgage lender as well as a seller of mortgage loans?
• What is the term for obtaining a new mortgage loan on a property already owned while paying off the existing loan?
• What does zoning regulation aim to accomplish?
• For a general QM, the qualifying rate for a borrower is based on the highest rate within the first how many years of the loan?
• Which aspect of lending does the Truth-In-Lending Act regulate?
• To qualify as a temporary QM, a loan must be deliverable to which of the following?
• What percentage of commission earnings or business ownership qualifies a borrower as self-employed?
• What is referred to as the rate charged to banks for borrowing money from the 11th District Federal Reserve bank?
• Which agency is responsible for enforcing compliance of mortgage brokers with federal lending laws?
• What financing tool is used to temporarily lower the interest rate and monthly payments on a mortgage?
• What process determines if the borrower has met all conditions required to issue a final loan commitment?
• What is the primary purpose of a mortgage?
• Which document demonstrates that a borrower meets loan eligibility requirements based on their credit history?
• What type of loan program requires the borrower to only pay interest on the loan?
• Which type of loan is backed by the Federal Housing Administration?
• What is a measurement of land, typically showing its location and dimensions, called?
• In an ARM, what is the rate called that is indicated by adding the current index value to the margin?
• When is a residential loan considered a Higher Priced Mortgage Loan (HPML)?
• What percentage deduction is taken for vacancy and maintenance when using rental income?
• Which component is essential for understanding a borrower’s financial situation during underwriting?
• What regulation allows third party fees disclosed on the Loan Estimate to carry a 10% tolerance?
• A Qualified Mortgage (QM) assumes that which condition has been met?
• Which factor does NOT typically affect qualifying ratios for a mortgage?
• Which law addresses discrimination patterns in lending?
• What is a lien in the context of property and debt?
• Which policy typically insures against errors in the title search?
• What does one point equal in a mortgage context?
• What does a credit risk score represent?
• What does agency refer to in a legal context?
• What type of loan typically does not require mortgage insurance?
• How does TILA define a Home Equity Line of Credit (HELOC)?
• What does the abbreviation ‘HELOC’ stand for?
• What is the penalty for failing to comply with Real Estate Settlement Procedures Act (RESPA) regulations?
• If a debt has no payment associated with it, what percentage is allocated as a qualifying payment by the underwriter?
• What is the term for the amount of money paid toward the purchase price of a home that is not financed?
• What term describes replacing an existing loan with a new loan secured by the same property?
• What is the main advantage of a biweekly payment mortgage?
• What term refers to a payment made by the borrower in advance of the due date?
• What type of loan is long-term, low, or no-down payment, guaranteed by the Department of Veterans Affairs?
• What term is used for the money required from a buyer to hold a property while the sale is being arranged?
• What does the term 'cloud on title' indicate?
• In a real estate transaction, who is referred to as the mortgagor?
• Which of the following indicates a risky feature that is excluded from Qualified Mortgages?
• What is a Fixed Rate Mortgage characterized by?
• Which of the following describes a mortgage loan?
• In a refinance transaction, if only John Brown receives a copy of the Notice of Right to Cancel, what is the rescission deadline for both John and Jane Brown?
• Which type of mortgage includes periodic payments with a final payment that is considerably larger than the preceding payments?
• Which agency guarantees loans for veterans?
• What initial payment is made by a buyer to a seller to show intent to fulfill a contract?
• Which law involves regulations for disclosures related to mortgage loans?
• What is included in the Monthly Fixed Installment?
• In a revolving debt scenario, what can a consumer do with their credit?
• What is the term for when a lender delays foreclosure action to allow a borrower to address overdue payments?
• What does a Verification of Employment document provide?
• Which index is used to determine interest rates for adjustable rate mortgages?
• Which of the following transactions is not covered under TRID?
• What is a trust account that holds funds allocated for the payment of real estate taxes, hazard insurance premiums, etc.?
• What is the term for a report that lists the ownership history of a property in chronological order?
• How many days does a borrower have to move in after closing on a loan transaction?
• What is a condition called in which complete real estate ownership is impaired by unsettled claims and liens?
• What is a local tax levied against property for specific purposes, like improvements or services?
• Which agency oversees programs and services specifically for veterans, including guarantees on mortgages?
• What is the process called when a lender uses another party to help with mortgage origination and processing?
• What is required for the applicant to receive electronic delivery of disclosures?
• What committee controls the Federal Reserve System and is responsible for monetary policy?
• What must happen if there is an increase in the Annual Percentage Rate (APR) by more than 1/8th after the closing disclosure has been delivered?
• What is a key function of the Federal Housing Administration (FHA)?
• Which act requires lenders to inform borrowers about their rights to rescind?
• Which regulation specifies the requirements lenders must follow under the Truth-in-Lending Act?
• Which law addresses issues of compliance and record keeping in residential mortgage lending?
• Who is responsible for verifying and coordinating the information in a loan file?
• What is the purpose of Private Mortgage Insurance (PMI) in a conventional loan?
• What is one consequence of negative amortization?
• What term describes additional money paid in conjunction with a mortgage loan, aside from the actual loan amount and interest?
• Under which law is lending limited for personal, family and household reasons?
• What fee is paid at closing and/or with monthly payments to insure an FHA loan?
• What describes the concept of a temporary buy-down in mortgage financing?
• What is the retention period for the Closing Disclosure?
• In the context of seller contributions, what does LTV stand for?
• Who is licensed to negotiate and transact the sale of real estate on behalf of the property owner?
• What term describes a declaration made before an authorized person, indicating that a signature is a voluntary act?
• What is a construction loan called that includes permanent financing?
• Which federal agency is responsible for overseeing the Fair Housing Act?
• What term describes the monthly income before any deductions have been made?
• What is the form number for the Loan Estimate?
• What is an FHA loan?
• What is a common characteristic of an FHA insured mortgage?
• What is an encumbrance in real estate?
• What law requires the establishment of the Nationwide Mortgage Licensing System and Registry (NMLSR)?
• Which type of loan generally requires a higher down payment?
• Which clause states that the entire loan amount is due immediately upon default?
• What is the purpose of a rate lock in mortgage transactions?
• What type of insurance protects the lender from losses in case of borrower default?
• Which government-sponsored enterprise deals with purchasing both conforming mortgage loans and those insured by the FHA?
• What is the term for the regular payment a borrower agrees to make to a lender?
• Which of the following entities is protected by ECOA?
• What is the definition of a loan?
• Which market involves retailers like banks that make mortgage loans directly to borrowers?
• What does Pre-Qualification involve?
• What is the minimum amount of repairs required for an FHA 203K rehab loan?
• What is an ARM that has a monthly payment sufficient to amortize the remaining balance over the amortization term called?
• What requirement involves revealing all information pertinent to a transaction?
• What is the focus of the TILA-RESPA Integrated Disclosure Rule (TRID)?
• In mortgage lending, what does the term "loan-to-value" (LTV) refer to?
• Which approach is commonly used to determine the value of owner-occupied properties in established neighborhoods?
• What is the term for the date when a new monthly payment amount takes effect on an Adjustable Rate Mortgage (ARM) or a Graduated Payment Mortgage (GPM)?
• What time frame defines a resale of a house that restricts eligibility for FHA financing?
• Can the closing agent charge the borrower for preparing a copy of the HUD-1?
• How many days must a lender disclose the reason for a loan denial?
• Which term describes a requirement to provide all information relevant to a transaction?
• Which statement is true about the Good Faith Estimate requirement?
• What type of loan is guaranteed by the USDA to promote living in rural areas?
• Which document is essential for a consumer to formally apply for a mortgage loan?
• Which liability factor do lenders use to assess a borrower's ability to repay a loan?
• Who is primarily responsible for the closing costs of a real estate transaction?
• What is commonly referred to as the process of adjusting mortgage payments due to negative amortization?
• What happens when there is deferred interest in a mortgage?
• Which deed provides the most protection to the buyer in terms of ownership guarantees?
• Which of the following is NOT a category of Qualified Mortgages?
• What is the term for the current rate the US Treasury is paying on securities it issues?
• Which law establishes the rules for disclosing the cost of services in mortgage transactions?
• What do lenders use to determine the consumer creditworthiness?
• What is the primary purpose of the Sales Comparison Approach in appraisals?
• What is the term used for the most basic form of real estate property rights?
• What business day rule applies to determining when the Closing Disclosure should be delivered?
• Which document provides the final terms of the mortgage loan?
• Which regulation governs the disclosures related to servicing mortgage loans?
• The Red Flag identity theft program created by the FTC includes how many red flag items?
• In a mortgage, which term is used for the fee charged for assessing the points?
• Which law addresses the consequences for a consumer who fails to opt out of having their private information shared?
• A loan program that requires the borrower to pay taxes and insurance only, receiving payments instead of making payments is known as what?
• When considering rental income for qualification, what percentage can be counted if not included on the tax return?
• What does the term 'consummation' refer to in a real estate transaction?
• If a borrower is denied a loan, which due process must the lender follow according to the ATR requirement?
• What document outlines the terms of a mortgage loan?
• What does the Department of Housing and Urban Development specialize in?
• In the 4 Cs of the Ability to Repay rule, which one is associated with the borrower's capability to handle loan payments?
• Which title indicates that a property has no legal claims against it?
• What is typically included in the legal documents executed during a closing?
• What type of loan is typically used for home construction?
• What does an escrow account primarily help a homebuyer manage?
• Why might a buyer be concerned about a cloud on title?
• What is negative amortization?
• What is typically included in the total monthly mortgage payment?
• Who typically performs a title search for a property?
• Which government agency is responsible for insuring loans?
• What is the potential criminal penalty for mortgage fraud?
• Which law's definition includes borrowers needing a good payment history for PMI cancellation?
• In how many categories are the primary types of mortgage loans classified?
• What does an appraiser assess in relation to property?
• What form number is used to request a copy of tax transcripts?
• What is a protected characteristic under the Fair Housing Act but not covered by ECOA?
• What is the term for a provision in a mortgage that permits the transfer of the mortgage from one party to another?
• What term refers to periodic payments on a loan structured to ensure complete repayment by the end of the loan term?
• Which term describes the total amount borrowed against the value of a property?
• What forms were integrated to create the Closing Disclosure?
• What upfront fee is required on a VA guaranteed loan?
• What are expenses incurred by buyers and sellers during a property ownership transfer typically referred to as?
• What kind of tolerance does our origination fee on the GFE have?
• Which document outlines the terms and repayment obligations for a loan?
• If a borrower is purchasing a home with an FHA loan and the home requires Flood Insurance, what is the length of the rescission period after closing?
• What type of loans are designed for borrowers with poor credit, unstable income, or high debt ratios?
• What does POC mean in real estate transactions?
• What is the term for a transaction among parties, each acting in his or her best interest?
• What is meant by the term adjusted basis in real estate?
• What type of deed warrants that the title is clear and free of encumbrances?
• Which type of mortgage is primarily used for home purchases and usually has fixed terms?
• Which law protects against discrimination due to a physical or mental disability in housing?
• What does depreciation refer to in property valuation?
• What is a conventional loan that meets secondary market guidelines and does not exceed conforming loan limits?
• Who is a person licensed to negotiate and transact the sale of real estate on behalf of the property owner?
• What is required from lenders to avoid adverse action based on credit score discrepancies?
• What is the term for a person's financial obligations, including both long-term and short-term debt?
• USDA/RHS loans allow what percentage of financing?
• Which term refers to an estimate of the fair market value of a property?
• What is a common purpose of an escrow account in a mortgage?
• Which type of insurance would be critical for a lender to protect itself against unanticipated property title defects?
• According to the Fair Housing Act, which of the following is not considered a handicapped person?
• In the context of mortgages, what does "LTV" stand for?
• Which financing option is specifically designed to support home rehabilitation through FHA?
• Which term best describes an increase in the value of a property over time?
• What does a 3/1 ARM signify in mortgage terms?
• If the revised Loan Estimate is mailed, how many business days before consummation must it be placed in the mail?
• Which type of mortgage loan does not fully amortize due to its repayment terms?
• Which mortgage is recorded first and has priority over other liens in case of default?
• What is the minimum term allowed for a balloon mortgage?
• A good payment history under the Home Owners Protection Act means no _____ lates in the last 24 months and no _____ lates in the past 12 months.
• What do you call the process of transferring the rights and obligations under a mortgage from one person to another?
• When assessing the maximum cash back from a limited cash-out refinance, what is the alternate figure mentioned besides the dollar amount?
• What is a charge imposed for repaying a loan early called?
• What does a Certificate of Reasonable Value (CRV) represent?
• What does the Treasury Rate (T-Rate) refer to?
• What type of mortgage allows money in a savings account to eventually reduce mortgage payments?
• What are the penalties for paying or accepting an illegal referral fee under RESPA?
• What type of insurance is used to protect against hazards in residential real estate?
• Which law requires that all mortgage loan originators be registered?
• Which type of policy protects the lender in a real estate transaction?
• What does the housing expenses-to-income ratio express?
• What is a Warehouse Line of Credit used for in the mortgage industry?
• What type of costs occur over and above the property's purchase price?
• Which two disclosures are now included within the loan estimate that were previously standalone disclosures?
• Under RESPA, what must happen if an escrow account has an overage of more than $50?
• If there is a shortage in the escrow account, what is the maximum period over which the lender can collect the shortage amount?
• Which law addresses discrimination against a child living with parents?
• What type of insurance covers the insured from risks such as fire or burglary?
• What type of title is free from liens and judgments?
• What best describes discount points paid on a mortgage loan?
• A complaint for housing discrimination would be handled by which entity?
• What are gross adjustments in real estate appraisal?
• Which document specifies the terms under which a borrower must repay a mortgage loan?
• What term refers to the equity gained by a buyer through their own labor or improvements on a property?
• What is an example of a non-judicial process for taking private property for public use?
• What type of fees are charged by a local recorder's office for recording a mortgage or deed of trust?
• What is an assumable mortgage?
• What key information does an appraisal analyze to determine property value?
• What is the estimated value derived through comparison with recent comparable sales and market conditions called?
• When applying for a mortgage, what is a critical evaluation factor lenders consider?
• What organization is commonly referred to as Fannie Mae?
• What is the general function of private mortgage insurance (PMI)?
• How much is 7 months of interest for a $200,000 loan at 5% interest?
• What do we call the provision in an ARM allowing conversion to a fixed-rate loan at some point during the term?
• What is required from lenders to comply with TRID regulations?
• What is the term for a legal arrangement where two or more people share equal ownership of a property, allowing the interest of a deceased tenant to transfer automatically to the surviving tenant?
• Which financing method involves borrowing based on the value of the property?
• What is the purpose of the Special Information booklet in mortgage transactions?
• Which law requires lenders to provide credit without discrimination based on various personal characteristics?
• Which type of loan requires the borrower to meet certain criteria set by the government?
• What financial concept refers to the initial amount borrowed through a mortgage?
• What is the retention period for the Loan Estimate?
• What is the financial market where private investors and government-sponsored enterprises buy and securitize mortgages?
• What federal legislation was enacted in 1970 to ensure accuracy in credit-related information used by lending institutions?
• Which regulation involves the disclosure of loan costs and terms?
• What is the term for a loan settlement where the funds for the loan are disbursed simultaneously?
• When the loan funds are unavailable on the same day as closing, what type of settlement is this?
• What is a non-cash accounting expense that reduces the value of an asset?
• What is defined as a title that is free of any liens, judgments, or other encumbrances?
• Which type of loans are characterized by good credit scores and stable income histories?
• What describes a mortgage payment schedule based on payments every 2 weeks resulting in one extra payment per year?
• Which party typically bears the risk in a seller carry-back financing?
• What is a long-term mortgage typically defined as?
• What is a measurement used to assess the total percentage of debts to monthly income?
• In which type of transaction is a Special Information booklet generally NOT required?
• What are the housing payment and total debt ratios for standard FHA financing as a percentage of gross monthly income?
• What type of loans are guaranteed by the Veterans Administration for military borrowers?
• What is the term used by RESPA to define the closing of a residential mortgage loan?
• What entity is responsible for instituting the Red Flags Identity Theft program?
• When a loan is sold and the seller must buy it back under certain conditions, what is this process called?
• Who is responsible for servicing a loan by managing payments and sending statements to borrowers?
• What term refers to a refinance transaction where proceeds are used to provide cash or pay unsecured debts?
• What is typically included in the concept of 'fees' associated with mortgage loans?
• What is a promise by a lender to advance funds when loan conditions are met?
• Which provision allows a lender to demand immediate payment of the mortgage balance if the holder sells the home?
• Which funds are verified to have been in the bank for a minimum of 60 consecutive days?
• The law that prohibits denial of housing based on disability is?
• Which type of loan allows a borrower to pay only the interest initially?
• Reverse mortgages must be repaid under which condition?
• When a borrower has a 2/1 buy down starting at 4.5%, what is the interest rate in the second year?
• What is the purpose of an assumability clause in a mortgage?
• The abbreviation MIP stands for what in the context of mortgages?
• What is the primary purpose of the Veterans Administration's loan guarantee?
• What is the main purpose of the Consumer Financial Protection Bureau (CFPB)?
• If a borrower is allowed to accept their own service provider, what tolerance category does this fall under?
• What legislation addresses discrimination in lending based on age?
• Which term describes a type of mortgage where the interest rate may change?
• The Cost of Funds Index is primarily used to determine interest rates on which type of loans?
• Which term describes the amount required as a good faith deposit towards a real estate transaction?
• Which laws use the average prime offer rate (APOR) as a threshold?
• What is the fee charged by the bank for borrowing money called?
• In the context of mortgages, what does 'escrow' refer to?
• What is the maximum debt-to-income (DTI) ratio for a General Qualified Mortgage?
• What is the London Interbank Offered Rate commonly referred to as?
• Which of the following is a common feature of an Amortization Schedule?
• Steering, a discriminatory practice in housing, is linked to which law?
• Once a loan is closed, the borrower must occupy within:
• What is the term for a borrower's gross income after federal income tax deductions?
• What clause in a deed of trust conveys title to a borrower once the loan is fully paid?
• Which statement correctly describes a Home Equity Line of Credit (HELOC)?
• Which term describes a municipal determination that a property is unfit for occupancy?
• What is a Wet Settlement?
• What type of loan settlement occurs when loan funds are not available on the same day as closing?
• What law defines actions that encourage a borrower to default on a loan payment as it relates to loan modification?
• What clause in a mortgage allows a lender to demand immediate payment of the loan balance under specific conditions of fraud?
• What is required by TILA for all individuals on title in a refinance transaction?
• What law does Regulation B implement?
• Which type of title policy specifically protects the homebuyer?
• What financial tool is used to calculate the percentage difference in loan terms, such as interest rates?
• What could be a consequence of default in mortgage payments?
• What term refers to the right of a government to acquire private property for public use?
• Which regulation is RESPA associated with?
• What is the main advantage of having a Power of Attorney in a real estate transaction?
• The limits on how much interest rates can change during adjustment periods fall under which category?
• What is the purpose of the settlement booklet provided under RESPA?
• Which of the following is NOT a tolerance category related to fees?
• What does SAR stand for in the context of financial reporting?
• What happens if a revised Loan Estimate is not delivered in the required time before consummation?
• Blockbusting in real estate relates primarily to which law?
• Which independent federal agency oversees programs for veterans, including guaranteeing long-term mortgages?
• What does a lender typically issue to verify a borrower’s account balances?
• Who created the 26 red flag items for identity theft prevention?
• What is the role of a loan officer in the mortgage process?
• What mortgage type requires a higher down payment and typically has higher interest rates?
• Which organization is NOT typically considered part of the Secondary Mortgage Market?
• What is the Fannie Mae form number for the full appraisal of a single unit property?
• What type of insurance protects homeowners from losses caused by fire and burglary?
• In a real estate transaction, the individual signing the security instrument (mortgage or Deed of Trust) is known as what?
• What is the upfront funding fee for a VA borrower using their entitlement for the first time with a down payment of less than 5%?
• What does the term acquisition cost refer to in the context of FHA loans?
• What is the minimum cash investment required for an FHA purchase loan?
• In an ARM, how is the fully indexed rate determined?
• Which of the following describes the role of the Federal Trade Commission in mortgage lending?
• What type of property ownership passes to heirs upon the owner's death?
• If a seller is selling a house within what time period from the original purchase date, is the sale ineligible for FHA financing?
• Which appraisal approach considers the property's replacement value?
• What is the penalty called that a borrower must pay for making a payment after its due date?
• What does the acronym APR stand for?
• For a mortgage to be valid and enforceable, it must be?
• What is a short sale?
• How are fees listed on the new TRID disclosures?
• What is the term for the maximum limit on how much an adjustable rate can change?
• What is the promise called where one party agrees to pay a debt or fulfill an obligation if the original party fails to do so?
• What is FNMA's primary purpose in the secondary market?
• What is the term for the measure of a borrower's total debt relative to their income?
• In mortgage terminology, what is the "margin" best defined as?
• What must a Mortgage Loan Officer do after obtaining knowledge of potential fraud from a borrower?
• Who has the ability to originate, sell, and service mortgage loans?
• What is primarily the benefit of a reverse mortgage for older homeowners?
• What does the USDA guarantee in case of loan default?
• Which types of loans are not covered under RESPA?
• What ownership interest passes to one's heirs upon death?
• Which term describes a reduction in amount or intensity, often related to taxes or rental payments?
• What does a discount point do for the borrower?
• Which of the following would be considered an encumbrance?
• What is the abbreviation commonly used for For Sale By Owner?
• What is a key feature of a fully indexed rate in an adjustable-rate mortgage (ARM)?
• What is the process of assessing a loan applicant's financial information to determine loan risk called?
• What type of property is described as having a free and clear title?
• What law requires lenders to terminate private mortgage insurance automatically when the loan reaches 78% of the original value?
• What law regulates activities related to residential mortgage loan modifications?
• What kind of mortgage is guaranteed by a third party?
• Which law mandates mortgage origination companies to collect demographic information about a borrower, including race and income?
• What term refers to a loan designed to cover the costs of buying and renovating a property?
• What is the Debt-to-Income (DTI) limit for a general Qualified Mortgage?
• Which law primarily protects consumers from identity theft?
• What term is used to describe a structured payback plan over time?
• Which documents should a borrower review to confirm the presence of prepayment penalties in a loan?
• What percentage can non-taxable income be grossed up for loan qualification?
• What is a primary benefit of an FHA loan?
• What term describes the individual or entity that borrows money to secure a mortgage?
• What does FSBO stand for in real estate?
• What percentage of a credit score is determined by payment history?
• What is the purpose of the General QM category in mortgage lending?
• What is a conventional loan that fails to meet the requirements of the secondary market known as?
• A limited cash-out refinance allows the borrower to get cash back, the lower of what amount or percentage?
• What law limits the collection of fees to only the credit report fee before providing early disclosures?
• When is a loan application considered to have been received?
• What is the maximum amount of net worth liability for violating ECOA in a class action suit?
• Paying referral fees to real estate agents can violate which regulation?
• What could be the penalty for a violation of the Fair Housing Act?
• What is typically assessed when calculating a borrower's credit risk score?
• What is a Fixed Installment in relation to mortgage payments?
• What is the minimum escrow period for taxes and insurance for a HPML loan regardless of LTV?
• What act implements Regulation H under the Consumer Financial Protection Bureau?
• Verification of employment (VOE) typically covers the most recent how many years?
• What is the right called that allows a person to use a portion of another person's property, often for access?
• What does HUD stand for?
• Which ratio is typically used to measure a borrower’s debt capacity?
• What does it signify when an applicant signs the Loan Estimate or the Closing Disclosure?
• If a borrower wants to use their FHA loan for multiple properties, what is an important consideration regarding mortgage insurance?
• Which type of loan is generally the easiest to assume?
• Under ECOA, how long must mortgage records be retained?
• How many days prior to closing can a borrower request a copy of the HUD1 and the Closing Disclosure?
• The two QM categories are General and Temporary; what are the other two categories?
• What type of loan is secured by collateral, where the lender has a claim against the property if the debt is not repaid?
• What term refers to a loan that has not been modified to meet specific agency standards?
• What is the maximum criminal penalty for violating Regulation Z/TILA?
• What term describes property that is pledged as security for a loan?
• What is the up-front mortgage insurance percentage on a full qualifying FHA loan?
• In an adjustable-rate mortgage (ARM), what is the interest rate known as at the time of closing?
• What is the primary purpose of a Consumer Reporting Agency?
• What document confirms a borrower's position and salary for lending purposes?
• Which tolerance category applies to a fee retained by the lender, broker, or an affiliate of either?
• How many business days does a servicer have to respond to a "qualified written request" regarding a borrower's account?
• What is an annuity in relation to mortgage loans?
• What is an adjustment date in the context of an Adjustable Rate Mortgage (ARM)?
• Which of the following is an outcome of delinquency in mortgage payments?
• What determines the amount shown in an amortization schedule after each payment?
• Which of the following best describes the primary function of mortgage insurance?
• Which type of mortgage allows borrowers to borrow against the equity in their home?
• Which of the following is NOT a characteristic of VA loans?
• What does TILA refer to as the closing of a residential mortgage loan?
• What type of payments are included in the total cost of credit for a mortgage?
• Which mortgage type requires a lower down payment often associated with FHA loans?
• What is the process of making current an existing Title Abstract?
• What is the main distinction of a conventional loan compared to other types of loans?
• What does an APR reflect in terms of mortgage costs?
• In mortgage terminology, what is a point?
• Which agency acts as conservator of Fannie Mae and Freddie Mac?
• What type of mortgage is recorded after the first mortgage and is subordinate to it?
• If a borrower has less than a 20% down payment, what would be required on a conventional loan if the loan to value is greater than 80%?
• For how many years must RESPA documents be retained?
• What are Prepaid Expenses in the context of mortgages?
• Which section of RESPA deals specifically with escrow accounts?
• Which legislation is designed to improve transparency in the mortgage market?
• If a consumer proves that a lender did not meet the ATR requirements, what is the consumer entitled to?
• What does RESPA stand for?
• For veterans qualifying for a VA loan, what is the term for the amount guaranteed by the Veterans Administration?
• What is the typical result of making biweekly mortgage payments?
• What is the term for payments made at specified intervals, typically associated with insurance contracts or certain investments?
• VA loans require mortgage insurance which is?
• What is a basis point in financial terms?
• What might be a reason for a loan to be classified as a jumbo loan?
• What type of loan allows borrowers to draw on a credit line until a maximum amount is reached?
• What is the name of the cancellation of a contract, particularly relevant to refinancing?
• Which of the following characteristics is not protected under ECOA?
• What triggers a new three-day waiting period after delivering the Closing Disclosure?
• What do caps in ARMs provide consumers with?
• Which act primarily governs the requirement of lenders to disclose loan terms and costs?
• What term refers to an unpreventable destructive occurrence of the natural world?
• In third-party origination, which functions may the lender delegate?
• Which act prohibits misleading advertising in the universe of loans and mortgages?
• A Consumer Reporting Agency (CRA) must address disputes within how many days?
• What does MARS stand for regarding assistance services?
• In a real estate transaction, what does it mean when a buyer assumes a mortgage?
• What is the term for the calculation showing required payments to pay off a debt over time?
• Which of the following best defines revolving debt?
• Which law requires a loan servicer to notify the borrower 15 days before transferring the loan?
• How is a non-traditional mortgage defined by the SAFE Act?
• As a general rule, the APR is considered accurate if it is not more than what fraction of 1 percent above or below the disclosed APR?
• What term encompasses fees associated with obtaining credit, including loan fees and miscellaneous charges?
• When transferring a loan, how many days prior must the servicer notify the borrower?
• Which of the following is true regarding the timing of the Loan Estimate?
• In a class action suite under TILA, what is the maximum civil penalty?
• In a scenario where the combined loan-to-value (CLTV) is 75% and the second mortgage has a balance of $30,000, what is the amount of the first mortgage if the property is valued at $300,000?
• What form is known as the Uniform Residential Appraisal Report?
• Which type of insurance is likely to cover loss from disclosures about property title issues?
• On a VA guaranteed loan, what is the maximum entitlement amount reflected on the certificate of eligibility?
• What is the term for a purchase transaction where the seller provides all or part of the financing?
• What is the purpose of an escrow account in mortgage terms?
• What law required that disclosures under TRID be integrated?
• What type of foreclosure process is initiated by the lender filing a lawsuit in court?
• What does condemnation refer to in real estate?
• What is the timeframe for a Consumer Reporting Agency to investigate disputed credit reporting items according to the FCRA?
• Which index is commonly used to determine interest rates for adjustable rate mortgages?
• What percentage tolerance is applied to third party fees on the Good Faith Estimate (GFE)?
• Which federal agency is responsible for housing programs in the United States?
• What does Fraud mean in the context of mortgage agreements?
• What is typically not included in the calculation of a loan's Annual Percentage Rate (APR)?
• Which clause in a mortgage may allow for adjustments in the interest rate based on market conditions?
• A servicer must acknowledge a written request from a borrower within how many days?
• What is a characteristic of Government Sponsored Enterprises (GSE)?
• Who is qualified through state licensing procedures to estimate the value of real property?
• If a person on title does not receive the notice of the right to rescind, how many years does the right to rescind the transaction extend to?
• How many days before closing can a borrower request a copy of the HUD-1 if the lender makes 5 or fewer loans annually?
• What does it mean for a loan to have a low or no-down payment option typically associated with specific loans?
• What type of mortgage is specifically issued for purchasing real estate?
• What legal document protects a lender from misuse of funds by a title company?
• What is the fee charged by a mortgage broker for processing a mortgage loan application called?
• What is defined as a sum of borrowed money, typically repaid with interest?
• What is the combined costs of all mortgages on a home expressed as a percentage of the home’s value known as?
• What is the term for the fee paid to a lender when a mortgage assumption takes place?
• What is the term for the maximum rate increase allowed over the life of a loan?
• What is the maximum percentage financing allowed by VA?
• What is an advance in the context of mortgages?
• Why might a borrower agree to a short sale?
• What is the maximum charge a creditor or closing agent can impose for preparing the Closing Disclosure?
• Which federal law mandates that lenders provide credit without discrimination based on specific protected characteristics?
• Which document outlines the rights of consumers regarding their credit information?
• ECOA requires a copy of an appraisal or any evaluation of the subject property within how many days prior to the loan closing?
• Which agency oversees insurance companies and their policies in the mortgage industry?
• What is the legal document called that requires a borrower to repay a mortgage loan?
• What is the fee called that is paid to a lender when a mortgage assumption occurs?
• What law prohibits a loan servicer from charging a late fee within 60 days of receiving a transferred loan?
• What is a tool used by mortgage professionals to evaluate a client's creditworthiness?
• What is the record retention period for retaining TILA disclosures?
• What type of lien is placed on property due to a homeowner's failure to pay property taxes?
• Which percentage represents the maximum seller contribution if the LTV is less than 90% in general cases?
• What is the loan amount as a percentage of the purchase price or appraised value, whichever is lower, called?
• Which term describes an estate shared between a husband and wife, giving the survivor full possession upon the other's death?
• If a borrower has a 2/1 buy down loan, what does the number 2 signify?
• What does the mortgage banker primarily engage in?
• What is a distinguishing feature of a balloon mortgage?
• What is recasting in the context of mortgage payments?
• In what scenario would you need to complete the Government Monitoring section of the application?
• If the Closing Disclosure has been provided to the applicant, what is the rule regarding the Loan Estimate?
• What is the role of the third-party entity responsible for executing the documents at consummation?
• What is the difference between the market value of a property and the amount of outstanding debt against the property?
• What is the primary purpose of the Desktop Underwriter?
• What typically triggers a lender to require a borrower to have homeowners insurance?
• What is the process called for taking and processing a mortgage loan application?
• What is the base interest rate for a loan referred to as?
• What is one of the roles of the Federal Housing Administration?
• What fees are included in the loan origination fee as required by RESPA?
• How might lenders review a borrower's credit in the case of an assumable mortgage?
• What is the name of the covenant written into Deeds agreeing to performance or non-performance of certain acts?
• What does the term Fixed Installment refer to in mortgage loans?
• What type of loan reduces monthly payments through a temporary buy-down of the interest rate?
• If a man is borrowing $165,150 and pays 1 discount point and a broker fee of 2.5%, what is his total payment in fees?
• What is the maximum seller contribution toward closing costs and prepaid items on an FHA loan as a percentage of the sales price?
• In a bi-weekly mortgage payment plan, how many extra monthly payments are made each year?
• What does a higher combined loan to value (CLTV) ratio indicate?
• Which law created the Consumer Financial Protection Bureau?
• What document must military borrowers obtain from the VA to apply for a VA guaranteed home loan?
• In a conventional loan, private mortgage insurance and escrows are required when the loan-to-value ratio is greater than:
• What is the purpose of the Margin in an Adjustable Rate Mortgage (ARM)?
• What form of property documentation is essential for confirming prepayment penalties?
• What is a law enacted by a legislative body known as?
• Which of the following is a type of temporary loan?
• What type of mortgage features flexible payments that increase for a specified time before leveling off?
• What does the Mortgage Insurance Premium (MIP) refer to?
• What action must a lender take following a denial of credit?
• Which Fannie Mae form number is used for an exterior only appraisal of a single family unit?
• In the context of the 4 Cs of lending, what does capacity refer to?
• Who receives a right to rescind notice when there are two borrowers on the loan, both of whom will owner-occupy the property?
• What booklet must be provided to the applicant at application or within 3 business days of application for purchase transactions?
• Which type of adjustable-rate mortgage has an interest rate that can change yearly after an initial fixed period of three years?
• What are credits at closing that are subtracted from the final closing costs called?
• Which document would typically provide borrowers with an overview of what they can expect at closing?
• Which type of loan is characterized by not being backed by a government program?
• What is the regular periodic payment a borrower agrees to make called?
• Which of the following is a characteristic of a Planned Unit Development (PUD)?
• Which of the following refers to paying points to permanently lower the interest rate on a loan?
• What is the range for credit scores under the FICO scoring model?
• How many business days before consummation must the Closing Disclosure be provided to the applicant?
• What type of loan does not have any collateral or security attached to it?
• Which of the following describes an FHA loan?
• The USDA Rural Housing Service loans will guarantee what percentage in the event of the borrower's default?
• What do you call the interest rate that combines the index and the margin?
• Who is primarily responsible for ensuring compliance with TRID regulations?
• For how many months must ECOA records be retained?
• What form is commonly used when applying to obtain a mortgage loan?
• In what scenario does a borrower incur a late charge?
• What is the form commonly used for applying for a mortgage loan?
• Before qualifying for a Temporary QM, a loan must be deliverable to which entity?
• Which term refers to the ratio of the borrower's housing expenses to their monthly income?
• Which type of loan is most likely to have an extended lock feature?
• What is the primary purpose of the Home Ownership Equity Protection Act (HOEPA)?
• What is the primary goal of ECOA?
• How does the "mailbox rule" impact rescission periods?
• Who is referred to as the beneficiary in mortgage terms?
• A fully amortized 30-year loan would have payments based on _____ months and the loan is due in ______ months.
• According to Fannie Mae, insurance coverage must equal the lesser of what percentage of the insurable value?
• Which term best describes anything owned that isn't classified as real estate?
• Which of the following items is typically associated with an impound or escrow account?
• For a sales price of $237,000 with a $10,000 deposit and a 20% down payment, how much more does the borrower need to bring to closing for the down payment?
• What does the fully indexed rate in an ARM consist of?
• Which type of loan is not insured by the FHA or guaranteed by the VA?
• What is the difference between the market value of a property and the total outstanding obligations?
• What does equity represent in real estate?
• Which term refers to an international misrepresentation that causes another party to act to their detriment?
• Under ECOA, when is it permissible to inquire about a borrower's religion?
• What is referred to as the retail interest rate that a borrower may receive without incurring discount points?
• Under which act are services charged due to violations penalized at three times the amount charged?
• What is a primary feature of credit life insurance?
• What is the process called when a second lien retains its position after refinancing the first lien?
• What Act was established in 1934 that created the FHA?
• What type of loan exceeds the lending limits established by Fannie Mae and Freddie Mac?
• What is Freddie Mac?
• What is the maximum age for credit documentation?
• What is the role of Mortgage Insurance (MI)?
• Who must receive a Notice of their Right to Cancel in a refinance transaction?
• Which of the following would not be found on a credit report?
• What term describes a borrower who has not made payments on their loan?
• What is it called when the subordinate lien holder remains in a subordinate position when the first lien is replaced?
• Which type of loan meets the criteria set by Freddie Mac or Fannie Mae?
• What federal law helps consumers understand the costs of settlement services?
• What law governs the fair reporting of credit information?
• What is the term for an account where funds are held to pay property taxes and insurance on behalf of the borrower?
• What legal document binds a borrower to repay a loan?
• What type of mortgage involves increasing payments for a set period of time before leveling off?
• What does the acronym TRID stand for?
• Which category of information must be completed in the Government Monitoring section of a face-to-face application?
• What are the only fees a senior citizen must pay when they have a HECM loan?
• What term describes the funds provided by the lender at settlement?
• What does the Home Owners Protection Act require regarding mortgage insurance termination?
• What refers to the act of creating securities backed by mortgage loans?
• Which law amended the Fair Credit Reporting Act in 2003?
• What term refers to a portion of monthly payments held by the lender to cover expenses like taxes and insurance?
• If a lender wants to originate a QM loan with a DTI greater than 43%, which standard must it meet?
• If a duplex generates $1,200 in rent monthly, what is the vacancy factor percentage for the investment property?
• A State regulatory department can charge a civil penalty for non-compliance up to what amount per violation?
• What is the tolerance percentage for most third-party fees listed on the Loan Estimate?
• Which of the following best describes depreciation?
• How many days of waiting period are required for a change that increases the APR by more than 1/8th after the initial disclosure?
• Which agency is primarily responsible for addressing housing issues in the US?
• What are the two calculations used to determine if a borrower can qualify for a mortgage?
• What does fee simple ownership in real estate provide to the buyer?
• What is typically required for a borrower to determine qualification for a mortgage?
• What clause in a loan document allows the lender to demand immediate repayment upon default?
• How is the upfront mortgage insurance on a full qualifying FHA loan categorized?
• In mortgage terms, what is the benefit of having a clear title?
• What fee is charged by lenders to offset the costs associated with holding a mortgage?
• Which act requires that derogatory credit information be reported for 7 years other than bankruptcy?
• Which act ensures consumers receive adequate information regarding the terms of a loan?
• What is the primary purpose of Fannie Mae?
• What is the common term for the act of providing proof of income by an employer?
• What does "bankruptcy" refer to in a financial context?
• How is the cost of a loan expressed as a yearly percentage rate that includes interest and closing costs referred to?
• What factor significantly affects the calculation of the monthly mortgage payment?
• What is the primary benefit of using a reverse mortgage for retirees?
• What is the main function of a mortgage loan underwriter?
• Who must comply with the regulations set by the Equal Credit Opportunity Act (ECOA)?
• Which of the following terms refers to a promise within Deeds to ensure performance regarding property use?
• What is a bridge loan used for in real estate transactions?
• What term refers to the total amount of money that a borrower will repay over the life of the loan?
• What does FCRA stand for?
• What law requires non-depository mortgage companies with substantial loans to report annually?
• What is the financing tool used to temporarily reduce the interest rate and monthly payments on a mortgage?
• Which of the following best describes a fixed-rate mortgage?
• What is the maximum points and fees for a loan of $100,000 or greater on a qualified mortgage?
• How many days must a seller wait to sell a home for profit if the new buyer is using a FNMA loan?
• What is the percentage rate at which interest accrues on a mortgage called?
• In a lease-purchase mortgage loan, what does each month's rent payment typically include?
• Which fee is charged by a mortgage broker for processing a mortgage loan application?
• Sales price is $292k, buyer is putting down 20%, and seller is paying 4% for the buyer's closing costs. How much is the seller paying for the buyer's costs?
• What term describes a decrease in the value of a property over time?
• What is the term for the rights that allow a particular action to be taken on someone else's behalf?
• By how many business days must early disclosures be provided to the consumer after receiving a loan application?
• What is the term used to describe limitations placed on the fees a lender can charge for certain services?
• What are gross adjustments in real estate?
• The income limits for USDA/RHS loans are based on what percentage of the US median income?
• What is the purpose of an addendum in a contract?
• Who is responsible for servicing a loan, including sending statements and accepting payments?
• What is the primary function of the Federal Housing Administration (FHA)?
• What is the term for a lender relying on another party to assist with mortgage origination and processing?
• What type of charge is a broker fee classified as?
• Which type of contract is defined as one in which all terms have been completely fulfilled?
• The criteria established by Fannie Mae or Freddie Mac for loans fall under which category?
• What do retail lenders in the mortgage market include?
• What type of security represents a claim on the cash flows from mortgage loans through securitization?
• In what situation would a borrower typically invoke the right of rescission?
• Which of the following is NOT typically a characteristic of prime loans?
• What is the final lump sum paid at the maturity date of a balloon mortgage called?
• What is the fee earned for originating a loan called?
• What is the role of the Defeasance Clause in a mortgage agreement?
• What type of mortgage loan is in first position and not insured by a federal agency?
• What is the arrangement called that allows for reduced monthly payments by depositing money into an account?
• In a 3/1 ARM, what does the "3" represent?
• Which term refers to a reduction in amount or intensity, usually related to taxes or rent payments?
• What are investor-specific calculations to determine a borrower's eligibility for a mortgage called?
• What type of loan is designed for borrowers with poor credit or unstable income history?
• What is the purpose of a Verification of Deposit (VOD) document?
• Who is referred to as the mortgagee?
• What law mandates that borrowers escrowing for taxes and insurance must also escrow for flood insurance?
• What are recording fees typically charged for?
• What does a construction loan typically consist of?
• Which regulation allows consumers to permanently list their numbers to prevent marketing calls?
• For a 30-year fixed rate mortgage of $160,000 at an interest rate of 6.25%, what is the borrower's principal and interest payment?
• What term describes a person who owes money to a creditor or lender?
• What type of deed transfers ownership without any guarantees or warranties?
• What ratio is critical for evaluating a borrower's financial health?
• According to the Telemarketing Sales Rule, how many months can a business contact a consumer after the final transaction?
• Under which regulation is a lender held accountable for allowing discrimination based on a handicapped status?
• What common term refers to both individuals and entities that initiate the mortgage loan process?
• How many months does a verification of rental (VOR) and a verification of mortgage (VOM) cover?
• What ratio is typically used alongside the housing expense ratio in determining mortgage qualifications?
• What is the minimum waiting period for a revised Loan Estimate to be acted upon once delivered?
• What are the conditions that trigger a RESPA Affiliated Business Arrangement disclosure?
• Which document serves to confirm that a title company will follow the closing instructions provided?
• Which act emphasizes the importance of securing consumer information and allows opting out?
• What defines a business day for the right to rescind, excluding Sundays and legal holidays?
• What component accumulates in a savings account for a down payment in a lease-purchase mortgage?
• Which law is associated with the 3-7-3 rule relating to mortgage disclosures?
• If a broker fee is labeled as a finance charge, what implication does this have on the loan?
• What legal document grants authority for one person to act on behalf of another?
• Which party is known to have the right in a Right of First Refusal?
• What are closing costs?
• Mortgage-backed securities are a product of which marketplace?
• What does the Fair Credit Reporting Act (FCRA) limit regarding derogatory credit?
• What is the purpose of a pre-payment penalty in a mortgage loan?
• What term describes the total period required to amortize a mortgage loan expressed in months?
• Which law relates to both the definition of a business day and the right to rescind?
• Which of the following financing options is generally considered the most traditional form of mortgage?
• Which act prohibits discrimination based on marital status in lending practices?
• What is a contract of sale in real estate?
• What term describes the voluntary renunciation of a claim, right, or privilege?
• What is the asset threshold for depository institutions to report under HMDA?
• Which fees does the origination fee on the GFE include?
• What does BSA stand for in the context of financial regulations?
• Which agency regulates RESPA?
• What regulation mandates the provision of the Closing Disclosure document?
• A temporary 2/1 buydown loan reduces the note rate by what percentage in year one?
• What is the impact of having a loan-to-value ratio greater than 80%?
• What percentage threshold for a loan's original value must be reached for PMI to be automatically terminated according to the law?
• In mortgage terms, what is the significance of the term 'appraisal'?
• What is the term for obtaining a new mortgage loan on a property already owned and paying off the existing loan?
• What does a Title Binder provide until the title insurance policy is issued?
• What does the adjustment date refer to in an Adjustable Rate Mortgage?
• Which law mandates that the loan servicer who receives a transferred loan must notify the borrower within 15 days?
• According to TILA, how is the annual percentage rate (APR) defined?
• How is the 'prepayment penalty' listed in the TRID disclosures?
• In lending, what does "CLTV" stand for?
• What term describes the state of having failed to make payments on time, potentially leading to foreclosure?
• Which fee may be charged before the applicant has received the required early disclosures according to MDIA?
• What is the term for the meeting where legal documents are executed and funds change hands during a property transaction?
• How many pages does the Loan Estimate have?
• What does Forbearance refer to in the context of a mortgage loan?
• What is meant by amortization term?
• What term represents the legal completion of all necessary steps in a real estate transaction?
• What is a declaration by a person that their signature is a voluntary act, made before an authorized person?
• What does Regulation Z primarily govern?
• What is an entity called that makes funds available for borrowing?
• Which benefit is associated with the Equal Credit Opportunity Act (ECOA)?
• What procedure involves examining public records to determine the legal status of real property?
• What is the standard definition of a "business day" for Truth in Lending required disclosures?
• What legal document creates a voluntary lien on real property upon recording?
• What does a mortgage or Deed of Trust signify in a real estate transaction?
• What is the name of the document that outlines ethical standards for professionals?
• What is the best definition of an easement?
• Who provides an opinion of value based on various appraisal methods?
• What document is issued by the lender when a borrower pays off their mortgage loan in full?
• What type of settlement occurs when loan funds are not available on the same day as closing?
• Which act mainly governs the practices related to discrimination in housing?
• What do lenders typically use to assess a borrower's credit risk?
• Which term describes the interest rate that remains the same throughout the life of the loan?
• What does an installment payment typically include?
• What term describes the process of taking and processing a mortgage loan application?
• For how many years must RESPA records be retained?
• What is an unsecured loan?
• How is the cost of financing typically expressed, referring to the difference between the loan amount and the payments made over time?
• What does a Firm Commitment in mortgage terms refer to?
• Which legal mechanism helps local governments regulate privately owned real property to prevent land use conflicts?
• What is the term for equity created by a purchaser performing work on a property?
• A loan where payments do not cause the principal to increase or decrease is known as what type of loan?
• Which law mandates that creditors disclose associate, non-arms length relationships in the loan process to the borrower?
• How is an FHA loan characterized?
• Which mortgage type is most likely to be considered a high-risk loan?
• What does "Rebuttable presumption" refer to in the context of loans?
• According to ECOA, for how long must proof of compliance be retained for residential mortgage loans?
• What is a clause in a mortgage contract that prevents assuming the mortgage without lender consent?
• Which mortgage feature allows homeowners to borrow against their accumulated equity?
• What term describes the increase in the value of a property that has occurred over time?
• Is a lender allowed to consider a borrower's immigration status when approving a loan?
• Which entity guarantees loans specifically for qualified military borrowers?
• What is the purpose of a biweekly payment mortgage?
• What is a blanket mortgage?
• What entity provides the framework for safeguarding consumer credit information?
• How does tenancy by the entirety differ from other forms of co-ownership?
• Who is generally considered an entity that makes, funds, and services mortgages?
• What type of mortgage insurance is required when the loan-to-value ratio exceeds 80%?
• A borrower has until midnight of which business day to rescind a loan on a primary residence?
• Is it possible to provide a Loan Estimate after the Closing Disclosure?
• What is a fee paid to a lender at closing to provide the borrower with a lower note rate?
• Which process involves pooling similar types of loans to create mortgage-backed securities?
• What term describes a transaction where each party acts in their own best interest?
• Which loan feature distinguishes a jumbo loan from a conforming loan?
• What does the back-end ratio represent in mortgage financing?
• How is "30 basis points" expressed as a percentage?
• What type of property ownership involves equal ownership and automatic transfer to the surviving tenant upon death?
• What is the primary difference between the regular three business days and the mailbox rule definition of three business days?
• Which law regulates how Consumer Reporting Agencies collect and share consumer information?
• A lender that closes more than 5 loans annually is classified as what?
• Which mortgage type allows a borrower to pay only interest for a certain period before addressing the principal?
• Which of the following describes the nature of a Sales Contract?
• Which of the following is a common type of liability coverage in homeowner's insurance?
• Which term describes a mortgage that has scheduled periodic payments made by the lender to the borrower?
• What is the term for the limit on how much interest rates can increase over the overall life of an ARM?
• What does the term Funding refer to in the context of mortgage loans?
• What law requires lenders to provide an affiliated business arrangement disclosure by a specific time?
• What do Escrow Disbursements refer to?
• The SAFE Act requires how many hours of ethics for pre-license education?
• How many months of cushion reserve can a lender collect on an escrow account?
• What is the name of a reverse mortgage that is insured by the FHA?
• What does a borrower typically pay as a fee for borrowing money?
• What is included in an Escrow Payment made by a mortgagor?
• What must occur for an "Acceleration Clause" to be triggered?
• What is the Certificate of Reasonable Value (CRV) used for?
• What type of mortgage insurance relates specifically to FHA loans?
• Which phrase best describes the term 'mortgagor'?
• Which document do veterans use to confirm their eligibility for certain FHA loans?
• What penalty does section 8 of the Real Estate Settlement Procedures Act impose for violations?
• Which act allows for the cancellation of PMI by request when the loan is paid down to 80% of the original value?
• What is the term for the meeting where all parties execute documents and funds change hands?
• What law requires creditors to meet specific requirements for high-cost loans when certain thresholds are exceeded?
• What Title of the Consumer Credit Protection Act does the Equal Credit Opportunity Act (ECOA) represent?
• What is the purpose of a Warranty Deed in a real estate transaction?
• What does the acronym PITI stand for in mortgage financing?
• What type of loan is typically guaranteed by the Department of Veterans Affairs (VA)?
• For loan approval, how many months of non-traditional credit is evaluated?
• What is the initial payment for a 30 year fixed interest only loan of $200,000 at an interest rate of 6%?
• Which clause allows for the immediate payment of a loan balance if fraud is detected?
• What type of loan typically has a higher interest rate than conforming loans due to the greater risk to the lender?
• The SAFE Act pre-license education requirement includes how many hours of federal law?
• What term refers to the real or personal property pledged as collateral for a loan?
• What is the result of a bi-weekly payment plan for a mortgage?
• What is the name of the contract that conveys title of real estate after certain conditions are met?
• Redlining is best described as:
• What term describes the period during which a party may fail to perform without being deemed in default?
• What is the purpose of the Truth-In-Lending Act?
• Which clause allows the lender to demand immediate repayment of a loan balance under specific conditions?
• Which term refers to things that a person owns that can be turned into cash?
• On the 1003, what information is asked for government monitoring purposes?
• What is the retail interest rate that a borrower might receive without discount points called?
• After how many days can a lender charge a late fee once a loan has been transferred?
• What term describes a legal process to remove a claim on a property?
• What is the primary risk a lender mitigates by obtaining mortgage insurance?
• What does it mean to attest in a legal context?
• What is the main feature of a lease-purchase mortgage loan?
• What is the sum of the published index plus the margin referred to as?
• Which of the following is generally included in a credit report?
• What payment structure involves only paying the interest with no repayment on the principal?
• What do borrower’s credits include in the context of closing costs?
• What do safeguards limit regarding an Adjustable Rate Mortgage (ARM)?
• Which aspect of a mortgage informs the borrower about the total cost over the life of the loan?
• What document do veterans use to establish eligibility for certain FHA loans?
• Which law limits the reporting of bankruptcy filings for how many years?
• What is the penalty called when a borrower pays after the due date?
• What does a Certificate of Title confirm?
• What is the abbreviation for the Department of Housing and Urban Development?
• What situation classifies a second lien loan as a Higher Priced Mortgage Loan (HPML)?
• How many pages does the Closing Disclosure have and what is the retention period?
• What term describes interest charged in excess of the legal limit set by state law?
• What does the acronym URAR stand for?
• What type of insurance protects homeowners from previous third-party claims affecting the property?
• What is one consequence of a Payment Cap on an ARM loan?
• What term describes the amount of cash derived from an income-producing property over a period of time?
• What event occurs before the loan can consummate in relation to the Closing Disclosure?
• What does the term 'principal' refer to in the context of a mortgage loan?
• Which law mandates Consumer Reporting Agencies to place a fraud alert for 90 days based on a phone call?
• What does a borrower typically expect from the lender after 15 days of a loan transfer?
• Which regulation determines if an APR exceeds the APOR for high-cost loans?
• What clause in a deed of trust conveys title to a borrower once the loan is paid in full?
• What percentage of the funds needed at closing can be a gift, according to FHA regulations?
• What defines a deferred payment loan?
• What term describes the process when title changes ownership?
• Which entity is primarily responsible for enforcing mortgage discrimination laws?
• What are financial service corporations created by Congress to provide liquidity on the secondary market known as?
• What type of loan is specifically meant for the purchase of residential property where the property serves as collateral?
• What is typically included in closing costs for a mortgage?
• What is the adjusted basis of a property?
• What does FHA stand for?
• Can a VA loan be assumed by another party?
• What is typically included in the loan estimate provided to a borrower?
• Who qualifies as a creditor under ECOA?
• Which of the following is NOT considered a business day in terms of loan rescission?
• What must be included in a mortgage contract for it to be assumed by a new buyer?
• A balloon payment is typically required at what point in a balloon mortgage?
• What serves as temporary title insurance until the final policy is issued?
• Which federally chartered private institutions buy and sell residential mortgages?
• The civil penalty for violating RESPA section 8 is how many times the amount of money received?
• What law requires affiliated business relationships that include ownership greater than 1% to be disclosed to the borrower?
• What does the term Maturity refer to in mortgage loans?
• What does the acronym USDA stand for?
• What is meant by a lump sum in financial terms?
• Which refinance transaction involves lowering the interest rate or reducing the term of the loan?
• What is the most popular FHA loan program called?
• What does the mailbox rule specifically exclude from the definition of business days?
• How often must a lender update their Do Not Call Registry database?
• What fee is charged by a lender to initiate the loan process?
• How much is one discount point equal to in percentage of the loan?
• What is necessary for a borrower to avoid late charges from a new servicer during the 60-day transition period?
• What is the term for a published interest rate used as the basis for adjusting the note rate of an Adjustable Rate Mortgage (ARM)?
• What happens during the exercise of eminent domain?
• Under the Home Owners Protection Act, at what equity position can a borrower request cancellation of mortgage insurance?
• How is a conventional mortgage defined?
• If a couple qualifies for a $250,000 loan with a broker fee of 2 points, what is the dollar amount of that fee?
• What score is required to pass the SAFE test?
• Which of the following best describes a Reverse Mortgage?
• What best defines 'adjustable rate mortgage'?
• If a police report is filed, how long can a fraud alert last on a credit file?
• What type of fee might be charged by a mortgage broker based on the loan amount?
• If a loan gets denied within how many days are the early disclosure requirements waived?
• What term refers to the use of funds to pay real estate taxes, hazard insurance, mortgage insurance, and related expenses as they become due?
• A builder who does not want to pay off the entire loan balance upon selling a single home should ensure their mortgage includes what feature?
• What term describes the date when a new monthly payment amount takes effect on an ARM?
• Which term describes an agreement that has no legal force or effect?
• What financing option allows a borrower to access equity for personal use?
• What is the name of the clause that allows a lender to demand immediate payment if specific criteria related to fraud and misrepresentation are met?
• What type of credit report contains information from two or more credit repositories?
• Which practice requires lenders to be transparent about financial information in transactions?
• What is a description of the principles that govern the behavior of those abiding by a specific code?
• What is the term used for the maximum permissible amount that can be charged to a borrower beyond the Loan Estimate?
• Which of the following terms describes a variance that allows deviation from zoning laws?
• What is an important aspect of the USDA lending program?
• If a mortgage broker originates a loan and receives the application, who is responsible for the accuracy of the Loan Estimate?
• What is an advance in terms of loan disbursement?
• What is the primary function of a service release premium in mortgage lending?
• Which of the following describes a loan backed by collateral?
• What are the costs associated with closing a mortgage loan transaction?
• The Mortgage Disclosure Improvement Act (MDIA) has a rule involving how many days the lender must wait before closing a loan after the early disclosures are delivered?
• What is the law that requires lenders to charge a discount fee for lowering interest rates?
• Which term describes the legal process of transferring ownership of property?
• Which term represents the true cost of financing a mortgage?
• What characterizes Table Funding in mortgage transactions?
• What is Title 1 of the Consumer Credit Protection Act known as?
• In what year was FCRA permanently extended by FACTA?
• What is the primary function of a bridge loan?
• What role does a Mortgage Broker primarily serve?
• Under which regulation is a Mortgage Loan Officer required to report fraudulent disclosures made by a borrower?
• Which of the following is a common characteristic of a 30-year fixed mortgage?
• The Home Owners Equity Protection Act (HOEPA) establishes the "annual prime offer rate" (APOR). What percentage does the APR need to exceed for a first lien greater than $50,000 to be considered a high cost loan?
• What is an assumable mortgage?
• Which of the following is a RESPA disclosure that provides an accounting of actual costs?
• Which type of mortgage is considered the oldest lien against a property?
• What is a temporary loan specifically used to finance the construction of buildings?
• When is the latest that an applicant should receive the Closing Disclosure?
• An appraisal that allows for an exterior inspection only is suitable for which type of property?
• Which entity is primarily responsible for the enforcement of mortgage regulations?
• If a VA borrower has left the military, what document must they present reflecting an honorable discharge?
• Which scenario would not trigger a new three-day waiting period after delivering the Closing Disclosure?
• What is the term for the voluntary surrender of property owned or leased?
• What type of schedule addresses the principal and interest payments due on a loan?
• What is an arrangement that allows funds to be deposited to reduce monthly payments during the early years of a mortgage?
• What term refers to personal property that is not considered real estate?
• A servicer receiving a transferred loan must notify the borrower within how many days?
• What must be done if there is a change of circumstances after the Loan Estimate has been issued?
• For new construction, what is the acceptable age requirement for credit documentation?
• Which fee is associated with lowering a mortgage interest rate?
• What type of loan is secured by collateral such as property, allowing lenders to claim the property if the debt is unpaid?
• In terms of mortgages, what does the concept of balance generally refer to?
• What is the purpose of the VA Funding Fee?
• What document provides evidence of an individual's ownership of property?
• What organization compiles credit history reports for lenders?
• What is the primary purpose of underwriting in the loan process?
• Which act would apply if a person was prosecuted for discriminating against someone with a disability in housing?
• What type of mortgage allows a borrower to purchase a home with little or no money down in rural areas?
• What does it mean to Float in mortgage terms?
• What is the percentage rate at which interest accumulates on a mortgage, typically used to determine monthly payments?
• In the context of a refinance transaction, which ownership structure would require all parties to receive the Notice of Right to Cancel?
• Which federal law helps consumers understand the cost of settlement services and protects them from unearned fees?
• Under what condition will RESPA cover raw land transactions?
• If a mortgage is placed on a property that already has a first lien, what is the status of the second mortgage?
• What is a legally binding agreement between a buyer and seller detailing the sale of real estate called?
• What is the primary focus of hazard insurance?
• What type of insurance covers bodily injury or property damage resulting from negligence on a homeowner's property?
• Which agency is responsible for ensuring mortgage brokers comply with federal lending laws?
• Which section of RESPA addresses kickbacks and excessive fees?
• What form may a loan processor send to verify an applicant's employment history?
• What is the term for an entity that provides funds for others to borrow, often referred to as a creditor?
• What does the acronym PFC stand for in mortgage terms?
• What is the maximum number of units allowed in residential mortgage financing?
• What is the financial unit that equals 1/100 of 1% called?
• What type of agreement involves a seller retaining title until the property is paid in full?
• What is the maximum retention period for a Loan Estimate by law?
• Which item is typically not considered an asset?
• What is a basis point in terms of loan amount?
• What type of loan is secured by a mortgage and establishes a credit line that can be drawn upon as needed?
• Which document provides the total interest paid over the life of the loan?
• What role do Fannie Mae and Freddie Mac play in the mortgage market?
• What is a nonconforming loan that exceeds the lending limits established by Fannie Mae and Freddie Mac referred to as?
• Which type of loan generally carries higher interest rates due to increased risk?
• What does a Mandatory Arbitration Agreement require from contract parties?
• Given a sales price of $125,000, a first mortgage of $80,000, a second mortgage of $24,500, and an appraised value of $137,000, what is the LTV and CLTV?
• What is the purpose of the Certificate of Eligibility for military borrowers?
• What is the purpose of an escrow account in real estate?
• What term describes the funds withheld by a lender to cover potential future expenses?
• Is a VA Funding Fee ever refundable?
• What role does a closing agent play in a mortgage loan transaction?
• Which type of mortgage allows the borrower to make lower payments in the initial years?
• Which of the following terms describes the limit on interest rate changes over the life of an ARM?
• How many pages does the Loan Estimate have and what is the retention period?
• What role does a mortgage loan servicer fulfill?
• What mortgage program is best suited for a borrower aged 62 or older with significant home equity?
• Which title of the Dodd Frank Act regulates the mortgage industry?
• How many business days must a lender wait to close if there has been an APR tolerance violation?
• Which law mandates a record-keeping duration of 5 years?
• Which law allows borrowers to rescind a refinance within three business days of closing?
• Which of the following loans is likely to have draw payments?
• Which type of settlement allows for immediate disbursement of loan funds?
• An adjustable-rate mortgage that has a fixed rate for 5 years and can change annually is known as a _______ ARM, with the rate rounded to the nearest ______.
• What is the term for the money that a buyer pays towards the purchase price of a home that is not financed?
• A temporary QM allows for enhanced underwriting for how many years?
• What is the primary function of Hazard Insurance in a mortgage context?
• What is the primary function of the Federal Housing Administration (FHA)?
• What does a mortgage loan originator do?
• What term is used for the agreement where a lender provides funds at closing?
• What type of mortgage has a changing interest rate?
• Which law prevents a loan servicer from reporting a negative rating to the credit bureau within 60 days of receiving a transferred loan?
• What is the maximum loan term for a qualified mortgage?
• What market facilitates liquidity for the primary mortgage market by buying loans?
• What document typically accompanies a loan to show what the buyer is responsible for paying?
• What is the term for a provision in a mortgage that allows the lender to demand immediate payment if the mortgage holder sells the home?
• Which of the following best describes a primary function of the FHA?
• Under what conditions must a mortgage loan originator be licensed?
• Under the Home Mortgage Disclosure Act, what should a lender do if the borrower does not provide information regarding ethnicity, race, and sex during an in-person application?
• In real estate, what term is used for an agreement allowing a party to use a property without possessing ownership?
• What type of insurance protects the lender against loss from title defects?
• In what scenario would a due-on-sale clause render a mortgage non-assumable?
• What does the acronym Freddie Mac stand for?
• What type of score will not be accepted for underwriting by lenders?
• How often can interest rates change in a 5/1 adjustable-rate mortgage?
• What is the term for the fee that is charged for borrowing money?
• Can a creditor inquire about an applicant's marital status?
• Why is LIBOR important in the mortgage industry?
• What is an Executed Contract?
• What is the legal term for a government's right to acquire private property for public use?
• What term describes the portion of monthly payments held by the lender for taxes and insurance?
• What does TILA require when an interest rate is advertised?
• Which section of RESPA pertains to servicing disclosure requirements?
• Which type of insurance protects the lender against borrower default when the loan-to-value ratio exceeds 80%?
• Which mortgage allows the borrower to take advantage of changing interest rates?
• What is the time frame in which ECOA requires a notice of action for a counter offer that is not accepted?
• What is the main purpose of a Funding Fee in a VA loan?
• Which loan program has a mandatory UFMIP?
• What is the difference between the assets owned and any liabilities owed known as?
• How many years does a consumer have to initiate civil action against a creditor for violations of the Equal Credit Opportunity Act (ECOA)?
• What type of loan is characterized by interest-only payments and draw payments to the builder?
• Which item is NOT typically included in mortgage-related prepaid expenses?
• What is the term for a fee paid to lower the interest rate on a loan?
• What is the term for the cost associated with borrowing money?
• How many days of earnings must be verified for income qualifying?
• What will be the new interest rate on a variable rate mortgage after adjustment if the current LIBOR is 4.5%, the current interest rate is 5.625%, and the margin is 2.75%?
• What is a Merged Credit Report?
• What role does the Federal Deposit Insurance Corporation (FDIC) play in the banking system?
• If a lender collects credit scores, how many reasons for each score must be disclosed to the borrower?
• What legally binds a buyer and seller in the sale of real estate?
• How long must a creditor retain a loan to maintain QM status for Small Creditor QM and Balloon QM?
• Regulation V implements which law regarding consumer reporting?
• What is the maximum percentage over the APOR that qualifies a second lien loan as high cost?
• Which law defines that a heroin addict is not classified as a handicapped person?
• What type of mortgage is safeguarded by the Federal Housing Administration (FHA)?
• The origination fee on the Loan Estimate has what type of tolerance?
• Which of the following is a requirement for a valid mortgage?
• What law requires Consumer Reporting Agencies to maintain a fraud alert for 7 years if a police report is filed?
• How is the debt-to-income ratio expressed?
• What is the maximum penalty for violating ECOA?
• What is the role of a mortgage broker?
• How often must an analysis of an escrow account be conducted?
• Where would the reset period for an Adjustable Rate Mortgage (ARM) be indicated?
• What does "gross income" refer to in the context of loan qualification?
• Which term describes the ratio of a borrower's housing expenses to their income?
• What is a key characteristic of fees that are included in the origination fee?