P3-15 2

1. Question

What is the maximum amount a first-lien loan’s APR may exceed the APOR and still qualify as a Qualified Mortgage?

1.0%

Correct Incorrect Correct answer

1.5%

Correct Incorrect Correct answer

3.5%

Correct Incorrect Correct answer

6.5%

Correct Incorrect Correct answer

2. Question

What is the maximum allowable APR spread above APOR for a subordinate-lien loan to qualify as a Qualified Mortgage?

1.5%

Correct Incorrect Correct answer

2.5%

Correct Incorrect Correct answer

3.5%

Correct Incorrect Correct answer

6.5%

Correct Incorrect Correct answer

3. Question

When does a mortgage become classified as a high-cost loan based on APR?

When APR exceeds APOR by 3.5%

Correct Incorrect Correct answer

When APR exceeds APOR by 6.5% for first liens or 8.5% for subordinate liens

Correct Incorrect Correct answer

When APR exceeds APOR by 5%

Correct Incorrect Correct answer

When APR exceeds APOR by 4%

Correct Incorrect Correct answer

4. Question

What is the maximum allowable points and fees for a loan amount of $26,968 or more?

3% of the loan amount

Correct Incorrect Correct answer

4% of the loan amount

Correct Incorrect Correct answer

5% of the loan amount

Correct Incorrect Correct answer

8% of the loan amount

Correct Incorrect Correct answer

5. Question

What is the maximum allowable points and fees for loans under $26,968?

5% of the loan amount

Correct Incorrect Correct answer

$1,348 only

Correct Incorrect Correct answer

The lesser of 8% or $1,348

Correct Incorrect Correct answer

6.5% of the loan amount

Correct Incorrect Correct answer

6. Question

Which rule applies to prepayment penalties on Qualified Mortgages?

Allowed for up to 5 years

Correct Incorrect Correct answer

Allowed if disclosed

Correct Incorrect Correct answer

Cannot exceed 36 months or 2% of the prepaid amount

Correct Incorrect Correct answer

Always prohibited

Correct Incorrect Correct answer

7. Question

Which requirement must be met when underwriting a Qualified Mortgage?

Borrower must make a 20% down payment

Correct Incorrect Correct answer

Lender must verify the borrower’s ability to repay

Correct Incorrect Correct answer

Loan must be government insured

Correct Incorrect Correct answer

Loan must be fixed-rate

Correct Incorrect Correct answer

8. Question

What escrow requirement applies to Qualified Mortgages?

Escrow is optional

Correct Incorrect Correct answer

Escrow must be maintained for one year

Correct Incorrect Correct answer

Escrow must be maintained for at least five years

Correct Incorrect Correct answer

Escrow is only required for FHA loans

Correct Incorrect Correct answer

9. Question

Which loan feature is prohibited under Qualified Mortgage rules?

Adjustable interest rates

Correct Incorrect Correct answer

Balloon payments

Correct Incorrect Correct answer

Negative amortization

Correct Incorrect Correct answer

FHA insurance

Correct Incorrect Correct answer

10. Question

What is the maximum allowable late fee for a Qualified Mortgage?

2%

Correct Incorrect Correct answer

3%

Correct Incorrect Correct answer

4%

Correct Incorrect Correct answer

5%

Correct Incorrect Correct answer

11. Question

Which of the following is prohibited for Qualified Mortgages?

Financing points and fees

Correct Incorrect Correct answer

Loan modification fees

Correct Incorrect Correct answer

Negative amortization

Correct Incorrect Correct answer

All of the above

Correct Incorrect Correct answer

12. Question

Which requirement applies specifically to high-cost mortgage loans?

Interest rate increases upon default

Correct Incorrect Correct answer

Pre-loan counseling by a HUD-approved agency

Correct Incorrect Correct answer

Escrow accounts are optional

Correct Incorrect Correct answer

Arbitration clauses are required

Correct Incorrect Correct answer

13. Question

Which provision is prohibited in a high-cost mortgage loan?

Fixed interest rate

Correct Incorrect Correct answer

Insurance financing

Correct Incorrect Correct answer

Arbitration or non-judicial settlement clauses

Correct Incorrect Correct answer

Adjustable payments

Correct Incorrect Correct answer

14. Question

What is the maximum amount a first-lien loan’s APR may exceed the APOR and still qualify as a Qualified Mortgage?

1.0%

Correct Incorrect Correct answer

1.5%

Correct Incorrect Correct answer

3.5%

Correct Incorrect Correct answer

6.5%

Correct Incorrect Correct answer

15. Question

What is the maximum allowable APR spread above APOR for a subordinate-lien loan to qualify as a Qualified Mortgage?

1.5%

Correct Incorrect Correct answer

2.5%

Correct Incorrect Correct answer

3.5%

Correct Incorrect Correct answer

6.5%

Correct Incorrect Correct answer

16. Question

When does a mortgage become classified as a high-cost loan based on APR?

When APR exceeds APOR by 3.5%

Correct Incorrect Correct answer

When APR exceeds APOR by 6.5% for first liens or 8.5% for subordinate liens

Correct Incorrect Correct answer

When APR exceeds APOR by 5%

Correct Incorrect Correct answer

When APR exceeds APOR by 4%

Correct Incorrect Correct answer

17. Question

What is the maximum allowable points and fees for a loan amount of $26,968 or more?

3% of the loan amount

Correct Incorrect Correct answer

4% of the loan amount

Correct Incorrect Correct answer

5% of the loan amount

Correct Incorrect Correct answer

8% of the loan amount

Correct Incorrect Correct answer

18. Question

What is the maximum allowable points and fees for loans under $26,968?

5% of the loan amount

Correct Incorrect Correct answer

$1,348 only

Correct Incorrect Correct answer

The lesser of 8% or $1,348

Correct Incorrect Correct answer

6.5% of the loan amount

Correct Incorrect Correct answer

19. Question

Which rule applies to prepayment penalties on Qualified Mortgages?

Allowed for up to 5 years

Correct Incorrect Correct answer

Allowed if disclosed

Correct Incorrect Correct answer

Cannot exceed 36 months or 2% of the prepaid amount

Correct Incorrect Correct answer

Always prohibited

Correct Incorrect Correct answer

20. Question

Which requirement must be met when underwriting a Qualified Mortgage?

Borrower must make a 20% down payment

Correct Incorrect Correct answer

Lender must verify the borrower’s ability to repay

Correct Incorrect Correct answer

Loan must be government insured

Correct Incorrect Correct answer

Loan must be fixed-rate

Correct Incorrect Correct answer

21. Question

What escrow requirement applies to Qualified Mortgages?

Escrow is optional

Correct Incorrect Correct answer

Escrow must be maintained for one year

Correct Incorrect Correct answer

Escrow must be maintained for at least five years

Correct Incorrect Correct answer

Escrow is only required for FHA loans

Correct Incorrect Correct answer

22. Question

Which loan feature is prohibited under Qualified Mortgage rules?

Adjustable interest rates

Correct Incorrect Correct answer

Balloon payments

Correct Incorrect Correct answer

Negative amortization

Correct Incorrect Correct answer

FHA insurance

Correct Incorrect Correct answer

23. Question

What is the maximum allowable late fee for a Qualified Mortgage?

2%

Correct Incorrect Correct answer

3%

Correct Incorrect Correct answer

4%

Correct Incorrect Correct answer

5%

Correct Incorrect Correct answer

24. Question

Which of the following is prohibited for Qualified Mortgages?

Financing points and fees

Correct Incorrect Correct answer

Loan modification fees

Correct Incorrect Correct answer

Negative amortization

Correct Incorrect Correct answer

All of the above

Correct Incorrect Correct answer

25. Question

Which requirement applies specifically to high-cost mortgage loans?

Interest rate increases upon default

Correct Incorrect Correct answer

Pre-loan counseling by a HUD-approved agency

Correct Incorrect Correct answer

Escrow accounts are optional

Correct Incorrect Correct answer

Arbitration clauses are required

Correct Incorrect Correct answer

26. Question

Which provision is prohibited in a high-cost mortgage loan?

Fixed interest rate

Correct Incorrect Correct answer

Insurance financing

Correct Incorrect Correct answer

Arbitration or non-judicial settlement clauses

Correct Incorrect Correct answer

Adjustable payments

Correct Incorrect Correct answer

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

10. Question

11. Question

12. Question

13. Question

14. Question

15. Question

16. Question

17. Question

18. Question

19. Question

20. Question

21. Question

22. Question

23. Question

24. Question

25. Question

26. Question