Sec4-161

Quiz Summary

0 of 8 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 8 Questions answered correctly

Your time:

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

Question 1 of 8

1. Question

A borrower is reviewing closing costs and sees recording fees listed on the settlement documents. What are recording fees generally used for in a mortgage closing?

A) They pay for recording the Warranty Deed and Security Deed or Mortgage with the local municipality
Correct Incorrect Correct answer

B) They pay the borrower’s first monthly mortgage payment
Correct Incorrect Correct answer

C) They pay for the lender’s credit report and underwriting review
Correct Incorrect Correct answer

D) They pay only for private mortgage insurance premiums
Correct Incorrect Correct answer

Correct

Incorrect
Question 2 of 8

2. Question

A loan originator is asked whether a city or county charges tax or stamp fees on a mortgage transaction. What is the proper source for determining whether those local charges apply?

A) The borrower’s credit report
Correct Incorrect Correct answer

B) The loan originator’s preferred rate sheet
Correct Incorrect Correct answer

C) The local city or county municipality or a local closing attorney
Correct Incorrect Correct answer

D) The borrower’s hazard insurance company
Correct Incorrect Correct answer

Correct

Incorrect
Question 3 of 8

3. Question

In a state that charges transfer tax and intangible tax, how are these charges commonly calculated?

A) Transfer tax is usually calculated on the borrower’s income, and intangible tax is calculated on the property taxes
Correct Incorrect Correct answer

B) Transfer tax is usually calculated on the sales price, and intangible tax is usually calculated on the loan amount
Correct Incorrect Correct answer

C) Both taxes are always calculated only on the appraised value
Correct Incorrect Correct answer

D) Both taxes are always paid as a flat federal charge
Correct Incorrect Correct answer

Correct

Incorrect
Question 4 of 8

4. Question

A purchase contract is being reviewed to determine who must pay state tax and stamp charges. What should the parties understand about responsibility for paying these fees?

A) They are always paid by the seller and cannot be negotiated
Correct Incorrect Correct answer

B) They are always paid by the lender as a cost of doing business
Correct Incorrect Correct answer

C) They are always split equally between buyer and seller by federal law
Correct Incorrect Correct answer

D) Whether the buyer or seller pays may be negotiable, so the contract must be reviewed carefully
Correct Incorrect Correct answer

Correct

Incorrect
Question 5 of 8

5. Question

A lender requires a wood infestation report on a purchase transaction. What is the purpose of this pest inspection report?

A) To determine whether the borrower qualifies for a lower interest rate
Correct Incorrect Correct answer

B) To determine the existence of wood-destroying insects
Correct Incorrect Correct answer

C) To verify the borrower’s monthly income
Correct Incorrect Correct answer

D) To replace the need for title insurance
Correct Incorrect Correct answer

Correct

Incorrect
Question 6 of 8

6. Question

A borrower asks whether a wood infestation report is always required on a refinance transaction. What guidance does the manual provide?

A) Many lenders do not require a wood infestation report on a refinance, so the lender should be checked
Correct Incorrect Correct answer

B) Federal law requires a wood infestation report on every refinance
Correct Incorrect Correct answer

C) Only the seller can order a wood infestation report on a refinance
Correct Incorrect Correct answer

D) A refinance cannot close if no pest inspection is ordered by the borrower
Correct Incorrect Correct answer

Correct

Incorrect
Question 7 of 8

7. Question

A lender does not require a survey for closing. What should borrowers still be advised about obtaining a survey?

A) They should avoid a survey because it has no value once title insurance is issued
Correct Incorrect Correct answer

B) They should obtain a survey only if the property is new construction
Correct Incorrect Correct answer

C) They should be advised to obtain a survey because boundary issues may create costly problems later
Correct Incorrect Correct answer

D) They are prohibited from paying for a survey themselves
Correct Incorrect Correct answer

Correct

Incorrect
Question 8 of 8

8. Question

Under the TRID 2.0 requirements effective October 1, 2018, what must lenders disclose regarding certain borrower-paid settlement items?

A) Only lender origination charges
Correct Incorrect Correct answer

B) Customary Borrower Fees, including items such as HOA or condominium dues, home inspection fees, home warranty fees, pest inspection fees, or survey fees
Correct Incorrect Correct answer

C) Only prepaid interest and escrow deposits
Correct Incorrect Correct answer

D) Only fees paid to the real estate agents
Correct Incorrect Correct answer

Correct

Incorrect

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question