Page 1-94

Quiz Summary

0 of 9 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 9 Questions answered correctly

Your time:

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

Current
Review
Answered
Correct
Incorrect

Question 1 of 9

1. Question
Compensation Based on Terms

Loan originators may NOT accept compensation based on:
- A. A fixed percentage of the loan amount
- B. A minimum or maximum dollar threshold
- C. Any term or condition of the loan transaction
- D. A preset salary schedule
Correct

Incorrect
Question 2 of 9

2. Question
Consumer-Paid Compensation

If a loan originator receives compensation directly from the consumer, they may also receive compensation from:
- A. The lender
- B. A mortgage broker
- C. A real estate agent
- D. No other person besides the consumer
Correct

Incorrect
Question 3 of 9

3. Question
Prohibited Additional Compensation

What is prohibited when consumer-paid compensation is involved?
- A. Paying the originator more than 2% of the loan amount
- B. Paying the originator from commission-based accounts
- C. Any person paying compensation to the loan originator if they know the consumer has paid compensation
- D. Paying compensation based on loan type
Correct

Incorrect
Question 4 of 9

4. Question
Recordkeeping Requirements

What records must creditors maintain under compensation rules?
- A. Borrower’s employment history
- B. LOS system audit logs
- C. Originator compensation records and the compensation agreement in effect when the interest rate was set
- D. All loan processor salary records
Correct

Incorrect
Question 5 of 9

5. Question
Compensation Summary

Which statement best summarizes TILA’s compensation restriction?
- A. Loan originators may be paid based on LTV
- B. Compensation cannot be based on any loan term, except for a fixed percentage of the loan amount with allowable minimum/maximum limits
- C. Originators must be paid only by the lender
- D. Originators may charge discount points directly
Correct

Incorrect
Question 6 of 9

6. Question
Dual Compensation Prohibition

What is the general rule regarding dual compensation?
- A. It is permitted only on jumbo loans
- B. It is permitted only when the consumer signs a waiver
- C. It is prohibited when the originator receives consumer-paid compensation, preventing compensation from another person for the same transaction
- D. It applies only to refinances
Correct

Incorrect
Question 7 of 9

7. Question
Exception for Broker Employees

What exception applies to the dual-compensation rule?
- A. Lenders may pay bonuses based on loan profitability
- B. Brokers may pay their employees commissions, as long as the commissions are not based on loan terms or conditions
- C. Agents may receive additional compensation from affiliates
- D. Processors may receive volume-based bonuses
Correct

Incorrect
Question 8 of 9

8. Question
Upfront Points and Fees

What does Regulation Z say about consumer payment of upfront points and fees?
- A. They are prohibited on all HPML loans
- B. They are prohibited on all qualified mortgages
- C. There is no prohibition; creditors may collect upfront points and fees
- D. They require CFPB pre-approval
Correct

Incorrect
Question 9 of 9

9. Question
Steering Based on Compensation

Under the steering prohibition, loan originators may NOT steer a consumer to a loan based on:
- A. The borrower’s preferred amortization schedule
- B. The borrower’s risk tolerance
- C. The fact that the originator will receive greater compensation for that loan unless it is in the consumer’s best interest
- D. The borrower’s stated preferences
Correct

Incorrect

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question