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  1. Question 1 of 9
    1. Question

    Prohibited Representations

    A mortgage advertisement states, “Free Credit Disability Insurance Included,” even though the borrower must pay an additional monthly premium for the coverage.

    Which prohibited representation has likely occurred?

    Correct
    Incorrect
  2. Question 2 of 9
    2. Question

    Prohibited Representations

    A lender advertises a mortgage payment of $1,500 per month but fails to disclose that property taxes and homeowners insurance are not included.

    Which prohibited representation may have occurred?

    Correct
    Incorrect
  3. Question 3 of 9
    3. Question

    Prohibited Representations

    A loan officer tells a borrower, “This loan has absolutely no penalties,” despite a contractual prepayment penalty provision.

    Which prohibited representation is illustrated?

    Correct
    Incorrect
  4. Question 4 of 9
    4. Question

    Prohibited Representations

    An adjustable-rate mortgage advertisement prominently states “FIXED RATE LOAN” even though the interest rate adjusts after three years.

    Which prohibited representation may have occurred?

    Correct
    Incorrect
  5. Question 5 of 9
    5. Question

    Prohibited Representations

    An advertisement compares a one-year introductory payment to a hypothetical payment that would exist for the entire 30-year loan term.

    Which prohibited representation may be involved?

    Correct
    Incorrect
  6. Question 6 of 9
    6. Question

    Prohibited Representations

    A lender advertises a negatively amortizing loan as a “fully amortizing mortgage.”

    Which prohibited representation may have occurred?

    Correct
    Incorrect
  7. Question 7 of 9
    7. Question

    Prohibited Representations

    A reverse mortgage advertisement guarantees that every borrower will receive $100,000 in cash proceeds, regardless of qualifications.

    Which prohibited representation may have occurred?

    Correct
    Incorrect
  8. Question 8 of 9
    8. Question

    Prohibited Representations

    A reverse mortgage advertisement states, “No payments will ever be required,” without disclosing circumstances that could trigger obligations under the loan.

    Which prohibited representation may have occurred?

    Correct
    Incorrect
  9. Question 9 of 9
    9. Question

    Prohibited Representations

    A lender advertises that a borrower can never default on a reverse mortgage, even if property taxes and insurance are not paid.

    Which prohibited representation may have occurred?

    Correct
    Incorrect
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