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%
1.5%
3.5%
6.5%

2. Question

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

1.5%
2.5%
3.5%
6.5%

3. Question

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

When APR exceeds APOR by 3.5%
When APR exceeds APOR by 6.5% for first liens or 8.5% for subordinate liens
When APR exceeds APOR by 5%
When APR exceeds APOR by 4%

4. Question

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

3% of the loan amount
4% of the loan amount
5% of the loan amount
8% of the loan amount

5. Question

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

5% of the loan amount
$1,348 only
The lesser of 8% or $1,348
6.5% of the loan amount

6. Question

Which rule applies to prepayment penalties on Qualified Mortgages?

Allowed for up to 5 years
Allowed if disclosed
Cannot exceed 36 months or 2% of the prepaid amount
Always prohibited

7. Question

Which requirement must be met when underwriting a Qualified Mortgage?

Borrower must make a 20% down payment
Lender must verify the borrower’s ability to repay
Loan must be government insured
Loan must be fixed-rate

8. Question

What escrow requirement applies to Qualified Mortgages?

Escrow is optional
Escrow must be maintained for one year
Escrow must be maintained for at least five years
Escrow is only required for FHA loans

9. Question

Which loan feature is prohibited under Qualified Mortgage rules?

Adjustable interest rates
Balloon payments
Negative amortization
FHA insurance

10. Question

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

2%
3%
4%
5%

11. Question

Which of the following is prohibited for Qualified Mortgages?

Financing points and fees
Loan modification fees
Negative amortization
All of the above

12. Question

Which requirement applies specifically to high-cost mortgage loans?

Interest rate increases upon default
Pre-loan counseling by a HUD-approved agency
Escrow accounts are optional
Arbitration clauses are required

13. Question

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

Fixed interest rate
Insurance financing
Arbitration or non-judicial settlement clauses
Adjustable payments

14. Question