Sec 1-Page 3

Quiz Summary

0 of 6 Questions completed

Questions:

You have already completed the quiz before. Hence you can not start it again.

Quiz is loading…

You must sign in or sign up to start the quiz.

You must first complete the following:

Results

Quiz complete. Results are being recorded.

Results

0 of 6 Questions answered correctly

Your time:

You have reached 0 of 0 point(s), (0)

Current
Review
Answered
Correct
Incorrect

Question 1 of 6

1. Question
A borrower applies for a loan secured by a one-to-four family residential investment property. The borrower states that the proceeds will be used entirely for business expansion purposes and argues that the transaction is automatically exempt from RESPA because it is a business-purpose loan.

Which statement best reflects RESPA applicability?
- A) All business-purpose loans secured by residential property are exempt from RESPA
- B) Business-purpose exemptions do not apply to transactions in which natural persons place liens on one-to-four family residential property
- C) RESPA applies only if the borrower intends to occupy the property as a primary residence
- D) Business-purpose loans are exempt only when the loan amount exceeds conforming loan limits
Correct

Incorrect
Question 2 of 6

2. Question
A lender originates a mortgage loan secured by vacant land. At closing, the borrower signs documentation confirming that loan proceeds will be used within 18 months to construct a single-family residence on the property.

How is this transaction generally treated under RESPA?
- A) The loan is exempt because vacant land transactions are never covered by RESPA
- B) The transaction is exempt only if construction begins after two years
- C) The transaction is generally covered by RESPA because a structure will be constructed on the property within two years using loan proceeds
- D) The transaction is exempt because the property was unimproved at the time of closing
Correct

Incorrect
Question 3 of 6

3. Question
A borrower assumes an existing federally related mortgage loan. Under the loan documents, the lender has no contractual right to approve or deny the assuming borrower.

Which statement best reflects RESPA applicability?
- A) The assumption is exempt from RESPA because the lender does not have approval authority over the assuming borrower
- B) All mortgage assumptions are covered by RESPA regardless of lender approval rights
- C) The assumption is covered by RESPA only if the lender charges an assumption fee
- D) RESPA applies because the loan remains federally related after the transfer
Correct

Incorrect
Question 4 of 6

4. Question
A borrower converts an adjustable-rate mortgage into a fixed-rate loan under conversion provisions already contained within the original mortgage instrument. The lender charges a conversion fee, but no new promissory note is executed.

How is this transaction generally treated under RESPA?
- A) The conversion is covered by RESPA because a fee was charged
- B) The conversion is exempt from RESPA because the modification is permitted under the original mortgage instrument and no new note is required
- C) The conversion is exempt only if the borrower refinances with the same lender
- D) The conversion is covered by RESPA because adjustable-rate loans require redisclosure
Correct

Incorrect
Question 5 of 6

5. Question
A mortgage loan originator prepares a training presentation discussing historical mortgage disclosure forms and incorrectly states that creditors still provide borrowers with a Good Faith Estimate for federally related mortgage loans.

Which statement best reflects current disclosure requirements?
- A) The Good Faith Estimate remains mandatory for all residential mortgage loans
- B) The Good Faith Estimate is required only for refinance transactions
- C) The Good Faith Estimate was replaced by the Integrated Mortgage Disclosures effective after October 4, 2015
- D) The Good Faith Estimate applies only to government-insured mortgage loans
Correct

Incorrect
Question 6 of 6

6. Question
A lender requires a borrower to use a specific settlement service provider for required mortgage-related services and requires the borrower to pay part of the provider’s fee.

Under TRID requirements, what information must the Loan Estimate include?
- A) Only the provider’s company name
- B) Only the estimated settlement charges
- C) A statement that the provider is required, the provider’s contact information, and a description of the relationship between the lender and provider
- D) Only an affiliated business arrangement disclosure after closing
Correct

Incorrect

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question