Which of the following is not exempted from the Fair Housing Act?
A) Rental of a room in a dwelling with no more than 4 independent units
B) Housing
... [Show More] operated by private organizations
C) Housing operated by private clubs
D) Multi-family home without the use of a broker or real estate agent - ANSWER-The answer is D
The specific exemptions to the Fair Housing Act are:
-rental of a room in a dwelling with no more than 4 independent units
- Housing operated by private organizations/clubs
-Single family purchase without a mortgage broker
Which of the following is the most common reported complaint related to mortgage lending?
A) Mortgaging service
B) Misapplied funds
C) Contract errors
D) Contract filing - ANSWER-The answer is A
The majority of complaints are related to mortgage services
Which of the following is not an acceptable practice for a mortgage loan officer acting on behalf of the lender?
A) Gather income information
B) Prescreen the applicant for approval
C) Submit the application to lender
D) Gather employment information - ANSWER-The answer is B
The loan officer has specific duties in preparing the application from the borrower to the lender.
The act of encouraging repeated refinancing of a loan without any real benefit to the borrower is which of the following practices?
A) Redlining
B) Steering
C) Flipping
D) Ballooning - ANSWER-The answer is C
Flipping is when a borrower is encouraged to refinance without any real benefits
Which of the following fees are not allowed for the VA loan?
A) Discount points
B) Attorney fees charged by lender
C) Lender fee
D) Title insurance - ANSWER-The answer is B
The attorney fee cannot be charged by the lender and is not available
When a power of attorney is granted for a real estate transaction, which of the following defines the role of the principal?
A. The person granting authority to someone else
B. The person gaining authority
C. The attorney to process the transaction
D. The agent to process the transaction - ANSWER-The answer is A
When a power of attorney is used, a person named the principal, grants the authority to someone else to act on their behalf.
According to the Equal Credit Opportunity Act, which of the following is not an acceptable reason for the lender to request the credit report of a spouse?
A) The spouse will be permitted to use the account
B) The spouse is contractually liable for the account
C) The applicant is relying on the spouse's income for repayment
D) The applicant has been married for over 2 years - ANSWER-The answer is D
There is no duration requirement for the marriage.
As per the SAFE Mortgage Licensing Act, which of the following is not a state requirement for the system of licensing for residential mortgage loan originators?
A) Criminal history
B) Continuing education
C) Pre-approval
D) Pre-licensing - ANSWER-The answer is C
SAFE requires a process for MLO licensing such as:
- Criminal history
-continuing education
-pre-licensing
The Loan Originator rule regulates compensation paid to the loan originator in most closed end transactions which includes all of the following except:
A) Prohibition of the terms of compensation from being based on the terms of the transaction
B) Prohibition of compensation due to bonuses related to mortgage activities
C) Permitting certain compensation methods such as retirement pans based on mortgage-related profits
D) Prohibition of compensation by a 2nd party - ANSWER-The answer is B
The Loan Origination Rule dictates regulations related to compensation including:
- Prohibition of the terms of compensation from being based on the terms of the transaction
- Permitting certain compensation methods such as retirement pans based on mortgage-related profits
- Prohibition of compensation by a 2nd party
CFPB civil penalties are assessed in which of the following ways?
A) Single limp sum penalty
B) Penalty for each infraction
C) Penalty only for an infraction in which the regulation was knowingly violated
D) Penalty for each day during which the violation continues - ANSWER-The answer is D
CFPB civil penalties are assessed no more than the prescribed maximum per day that the violation continues.
What is not a true statement regarding the characteristics of NMLS unique identifiers?
A) The entitiy's unique ID can only be changed by request once per year
B) The numbers are assigned sequentially
C) Each branch within a company is assigned a unique ID
D) Each natural person is assigned with a unique ID - ANSWER-The answer is A
The characteristics of NMLS identifiers can be found on the website, once assigned the number cannot be changed.
As per SAFE Act requirements, a Mortgage Loan Originator must submit all of the following except:
A) Finger prints for background check
B) Social Security Number
C) Financial services employment history for prior 10 years
D) Disclosure and justification of time of unemployment - ANSWER-The answer is D
SAFE Act requires MLO's of Federally regulated institutions to submit to the Registry:
- Finger prints for background check
- Social Security Number
- Financial services employment history for prior 10 years
The NMLS Registry has the intended purpose of all of the following except:
A) Providing licensing database
B) Enhance consumer protections
C) Ensure individualized license applications
D) Facilitate the collection and disbursement of consumer complaints - ANSWER-The answer is C [Show Less]