Guidelines For Taking A detailed Loan Application VOIDED TEST

The main activity of FHA is:

An equal undivided ownership of property by two or more persons, the survivors to take the
interest upon the death of one of them is called:

A gradual increase in the mortgage debt that occurs when the monthly installment is not
sufficient for full application to both principal and interest is called:

A deed by which the grantor releases any interest in the property without attempting to
convey title or make any warranty of clear title to the property is called a:

When a party agrees in writing that its claim on a property is inferior to the claim of
another, this is called:

An examination of public records laws and court decision to disclose the past and current
facts regarding ownership of real estate is called a:

A deed in which the grantor or seller warrants or guarantees that good title is being
conveyed is called a:

When a loan goes into default, the entire principal balance becomes due and payable
under a common provision of a mortgage and note, called a:

There is a clause in the mortgage or deed of trust which gives the lender the right to
accelerate the payment of the full unpaid balance on the loan on a certain date or on the
happening of specific conditions. This clause is known as a:

An unorganized market where mortgages are bought and sold is called the:

If borrowers accept an interest rate that is lower than current market rates, the borrower
must pay:

If borrowers accept an interest rate that is higher than market rates, when the loan is sold
in the secondary market the selling lender may collect additional profit on the loan,
called:

The Dodd-Frank Wall Street Reform and Consumer Protection Act created an
independent federal agency that holds primary responsibility for regulating consumer
protection with regard to financial products and services in the United States. This
Agency is known as:

Assume the factors of .5% for hazard insurance and 1.5% for taxes, and using the P&I and PMI formulas from the class, calculate PITI for a:

$200,000 sales price
90% LTV
3.5% 30-year fixed rate
685 FICO credit score

Under ECOA, an inquiry becomes an application when:

Under ECOA, the lender cannot ask questions about the borrower’s spouse on an
application unless:

Under ECOA, if a loan is not made substantially in the terms and conditions originally
quoted, the lender must provide a form called a:

Referring to the sample PMI rate sheet used in class, calculate the monthly PMI on:

Loan amount of $100,000
LTV 90%/Fixed Rate
Credit Score 711

Calculate the P&I on a 30-year fixed rate at 3.5% on a loan amount of $100

The Dodd-Frank Wall Street Reform and Consumer Protection Act amended ECOA to require creditors to automatically send a free copy of home appraisals and other written valuations promptly to consumers. This is referred to as the:

Under RESPA, the Loan Estimate must be provided to the borrowers within
business days of application:

Which transaction is exempt from RESPA?

Under RESPA, the “Home Loan Toolkit” is not required on a:

The RESPA Reform Act prohibits lenders and brokers from charging any fees to the
borrower for preparation of the Loan Estimate except one fee:

Which of the following is a PFC

The entity which conducts the settlement must provide the Closing Disclosure
at least _____ days prior to closing.

At the time of settlement, the lender may collect no more than an additional ____ extra
months’ escrow items as a cushion:

Which of the following is NOT a prepaid finance charge:

Fees quoted on the Loan Estimate must be guaranteed for ____ business days from the date
the Loan Estimate is issued.

Fees quoted on the initial Loan Estimate may not change within the number of days the lender must guarantee them except:

Fees initially quoted on the Loan Estimate may not increase unless the reason may be
attributed to what is referred to as a:

RESPA’s anti-kickback rule states that no person may give and no person may receive a fee
or thing of value for rendering of a real estate service:

Using the Tax Escrow Chart provided in class, determine the number of months to escrow for property taxes for the following scenario:

Purchase transaction
July closing
Taxes due in October

TILA, along with RESPA, requires that a Loan Estimate and Closing Disclosure be provided
if the property securing the loan will be owner-occupied for more than ____days during the
coming year:

TILA, along with RESPA, requires that the Loan Estimate be provided no later than
_____business days after application and at least ____business days before consummation
(closing):

Regulation Z applies to:

The APR is calculated based on those fees:

Under Truth-in-Lending, the Right of Rescission applies to any loan relating to a borrower’s
primary residence:

A consumer may waive the 3-business day Right of Rescission for the following reason:

In any situation in which the lender is quoting interest rates to the consumer, whether
verbally or in written advertisements, the lender must also quote the:

Special Flood Hazard Area refers to any property with a _____year flood boundary.

Determine what the borrower’s average monthly income is using the following scenario:

$65,000 in commissioned income in 2018 and $70,000 in commissioned income in 2019
The expenses reported on the IRS Form 2106 Employee Business Expenses were $1,400 for 2018 and $1,643 for 2019

On adjustable rate mortgages (ARMs), the lender must provide the borrower with a booklet
referred to as the ______________________  Booklet:

Under the Fair Credit Reporting Act, a consumer may request a copy of his/her credit report
free of charge if the request is made within days of being denied a loan:

The Act that requires customers to be screened and matched on a regular basis to a government-provided list of possible suspected terrorists, drug traffickers, money launderers and other criminals is known as the:

What is the per diem interest for the following scenario:

Loan amount of $273,750
Interest rate of 3.25%/30 year fixed rate

The Telephone Consumer Protection Act created a registry of telephone numbers that
solicitors may not call, referred to as the:

On a 95% loan, the maximum allowable contributions from the seller, Realtor, or other
interested party to the sale of the property are limited to _____% of the sales price:

A borrower may use funds obtained as a gift from a relative to satisfy part of the cash
requirement for closing, although the borrower generally must use his or her own funds to
cover the required minimum cash down payment of at least % of the sales price.

Borrowed funds are acceptable as a source of down payment as long as

Any source of income may be used to qualify the borrower if the borrower has received the
income for at least  _____ years and the employer indicates that the income will in all
probability continue.

Income from alimony or child support requires evidence that the funds have been received
for at least ___months and must continue for at least___ more years from the date
of the loan application

Borrowers who pay for job-related expenses are required to file the
IRS Form ________with their 1040 Individual Income Tax Return.

A self-employed borrower must be self-employed for at least ___years in order for the
income to be considered for loan approval.

If a borrower has been self-employed for an elapsed period of time less than this, but not less than ___year, the income could still be acceptable if the borrower can document that he or she was engaged in the same line of work while employed, and all other factors are acceptable.

Standard qualifying ratios are _______% front ratio and _____ % back ratio. These ratios may
be exceeded if there are strong compensating factors to justify the higher ratios.

Installment debts with _____or fewer payments remaining will not be counted as a liability
for qualifying purposes.

Collection accounts or charge-offs do not have to be paid off at or before loan closing if they
are less than $_________ per individual account or $__________ in total.

A borrower who has been declared bankrupt or has had property foreclosed upon is not
eligible for consideration of loan approval unless ____years have passed since the date of
discharge or foreclosure and the borrower has re-established a satisfactory credit history.

A borrower involved in a Chapter 13 Wage Earner’s Plan of Bankruptcy will be eligible for
consideration of loan approval after _____ years have elapsed and the borrower has reestablished
a satisfactory credit record.

A borrower who has had a foreclosure is not eligible for consideration of loan approval
unless _____ years have elapsed since the date of the foreclosure.