Florida Mortgage Loan Officer Practice Exam

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