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Question 1 of 6

1. Question
A borrower applies for a refinance transaction with no seller involved. At the time the Loan Estimate is prepared, the creditor has already completed its own internal valuation of the property. The borrower also provides an estimated property value that is higher than the creditor’s estimate.

Under TILA-RESPA requirements, which value should the creditor disclose on the Loan Estimate?
- A) The borrower’s estimated property value because the borrower selected the loan amount
- B) The higher of the two estimated values to reduce disclosure tolerance risk
- C) The average of the borrower’s estimate and the creditor’s estimate
- D) The creditor’s own estimate of the property value if it has already completed the estimate at the time disclosures are provided
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Question 2 of 6

2. Question
A creditor prepares a Loan Estimate for a refinance transaction involving payoff of an existing mortgage lien and several unsecured consumer debts being consolidated into the new loan.

How are these payoff amounts generally disclosed under TILA-RESPA requirements?
- A) Existing liens and unsecured debts are excluded from Cash to Close calculations
- B) Payoff amounts are disclosed only on the Closing Disclosure
- C) Payoffs of existing liens and unsecured debts are included in the Payoffs and Payments amount or factored into the Cash to Close calculations
- D) Unsecured debt payoffs may not appear on mortgage disclosures
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Question 3 of 6

3. Question
A borrower reviewing a Loan Estimate notices that the disclosed loan amount differs from the actual amount the borrower expects to receive at closing after prepaid fees and adjustments are deducted.

Which statement best explains how the Loan Amount is disclosed under TILA-RESPA requirements?
- A) The Loan Amount disclosed on the Loan Estimate reflects the borrower’s net cash proceeds after deductions
- B) The disclosed Loan Amount represents the face amount of the promissory note
- C) The Loan Amount must equal the property’s appraised value
- D) The disclosed Loan Amount excludes financed closing costs
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Question 4 of 6

4. Question
A mortgage loan contains several scheduled payment adjustments that will occur during the same calendar year because of interest-rate and payment changes permitted under the loan terms.

How must these payment changes generally be disclosed on the Loan Estimate?
- A) Each payment change must be disclosed separately regardless of timing
- B) The creditor may omit future payment changes until the Closing Disclosure
- C) The creditor combines multiple payment changes occurring within the same year into a single disclosed payment range
- D) Payment changes are disclosed only after the first adjustment occurs
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Question 5 of 6

5. Question
A first-time homebuyer receives the CFPB Home Loan Toolkit from a mortgage lender during the application process. The borrower asks why the Toolkit was created and how it relates to the mortgage disclosure process.

Which statement best reflects the purpose of the Home Loan Toolkit?
- A) The Toolkit was designed to help consumers understand and use the Loan Estimate and Closing Disclosure forms during the mortgage process
- B) The Toolkit was created primarily to assist lenders with internal underwriting procedures
- C) The Toolkit replaced all Truth in Lending disclosures required under Regulation Z
- D) The Toolkit is used only for reverse mortgage transactions
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Question 6 of 6

6. Question
A mortgage loan originator explains to borrowers that the CFPB Home Loan Toolkit replaced an older HUD publication previously used during the mortgage application process.

Which publication was replaced by the Home Loan Toolkit?
- A) Consumer Handbook on Adjustable-Rate Mortgages
- B) Equal Credit Opportunity Act Notice
- C) Shopping for Your Home Loan: Settlement Costs Booklet
- D) Servicing Disclosure Statement
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