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Question 1 of 9

1. Question
Lowest-Rate Loan Requirement

When presenting loan options, which loan must be included to comply with the steering rules?
- A. The loan with the lowest monthly payment, regardless of features
- B. The loan with the lowest interest rate, even if it includes negative amortization
- C. The loan with the lowest interest rate without negative amortization, prepayment penalty, interest-only payments, balloon in first 7 years, demand feature, or shared equity/appreciation
- D. Any loan chosen by the creditor
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Question 2 of 9

2. Question
Lowest Cost Loan Requirement

In addition to the qualifying lowest-rate loan, what other loan option must be included among the options presented?
- A. The loan with the longest term
- B. The loan with the lowest APR including all finance charges
- C. The loan with the lowest total dollar amount for origination points or fees and discount points
- D. The loan with the highest lender credit
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Question 3 of 9

3. Question
Qualification Belief

What belief must the loan originator have about the loan options presented to the consumer?
- A. That the loans will generate the highest profit for the creditor
- B. That the consumer will choose the loan with the lowest payment
- C. That the options are loans for which the consumer likely qualifies
- D. That the consumer will refinance within 3 years
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Question 4 of 9

4. Question
More Than Three Loans

If a loan originator presents more than three loan options to a consumer, what must they do?
- A. Highlight only fixed-rate loans
- B. Highlight only loans with the lowest payment
- C. Highlight the loans that satisfy the criteria specified in the law
- D. Highlight any loans the creditor prefers
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Question 5 of 9

5. Question
Fewer Than Three Loans

Under the steering rules, when is a loan originator allowed to present fewer than three loan options?
- A. Only on government loans
- B. Only for refinances
- C. When the rules of this section of the law are otherwise met
- D. When the consumer has poor credit
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Question 6 of 9

6. Question
Excluded Transactions

The loan option rules for steering do not apply to which types of loans?
- A. FHA and VA loans
- B. Non-QM loans
- C. Home equity lines of credit and timeshares
- D. Jumbo fixed-rate loans
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Question 7 of 9

7. Question
Broker Compensation Based on Rate

Which of the following is prohibited regarding payments by mortgage brokers to their loan originators?
- A. Paying a flat hourly wage
- B. Paying more compensation for a loan with a 7% rate than for one with a 6% rate
- C. Paying a fixed salary plus health benefits
- D. Paying based on years of experience
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Question 8 of 9

8. Question
Definition of Compensation

Which of the following is considered compensation to a loan originator under the rule?
- A. Only base salary
- B. Only per-file processing fees
- C. Salaries, commissions, bonuses, or prizes based on loan terms or conditions
- D. Only trips or merchandise, but not money
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Question 9 of 9

9. Question
Processing Fee Treatment

How is a “processing fee” treated when imposed and retained by a loan originator?
- A. It is not considered compensation if labeled as a processing fee
- B. It is compensation only if the originator spends it on marketing
- C. It is deemed compensation regardless of the name of the fee and how it is used
- D. It is excluded if it covers actual processing time
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