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| Section | Objectives |
|---|---|
| General Mortgage Knowledge | - Mortgage Types and Products - Loan Origination Process - Loan Closing Procedures - Underwriting Basics |
| Uniform State Content | - Licensing Requirements and Compliance - State Lending Regulations Overview |
| Ethics and Professional Conduct | - Disclosure Requirements - Fraud Prevention - Consumer Protection Standards |
| Federal Mortgage-Related Laws | - Truth in Lending Act (TILA) / Regulation Z - Real Estate Settlement Procedures Act (RESPA) - Equal Credit Opportunity Act (ECOA) - Fair Housing Act |
1. Which of the following documents is required to be issued to a customer when a mortgage loan originator is also a real estate broker on the same transaction?
A) Special information booklet
B) Appraisal disclosure
C) Affiliated business arrangement disclosure
D) Loan application
2. Which of the following activities is an example of redlining in mortgage lending?
A) The systematic denial of various services to residents of specific, often racially associated, neighborhoods or communities, either explicitly or through the selective raising of prices
B) The act of the mortgage lender putting a "red line" under the borrower's name in a file to indicate they are a substandard applicant
C) Ensuring that all creditworthy borrowers are afforded equal treatment when applying for a mortgage loan
D) The mortgage loan originator convincing the underwriter to move their loan file to the front of the line or "redline" it
3. When a consumer applies for an ARM, the creditor must provide a variable-rate program disclosure:
A) At the time an application form is provided or before the consumer pays a nonrefundable fee, whichever is earlier.
B) After the creditor has received documents verifying information related to the consumer's application.
C) No later than seven business days before loan consummation.
D) No later than three business days before loan consummation.
4. Which of the following real estate methods allows investors to estimate the value of a property by taking the rent collected and dividing it by the capitalization rate?
A) Residual method approach
B) Income approach
C) Sales comparison approach
D) Cost approach
5. Which of the following services is included in the definition of a settlement service?
A) Flood insurance
B) Sale of the mortgage loan on the secondary market
C) Title company/escrow agent services
D) Homeowners association fees
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: C |
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