Question 1

Which of the following statements describes the purpose of the TILA-RESPA Integrated Disclosure (TRID)?

Options :

A : It provides a three-day cooling-off period for all loans

B : It allows borrowers five days to review the final amount needed for settlement.

C : It ensures that the terms and fees that are quoted at the time of application do not change.

D :

It aids borrowers in understanding the loan transaction process by utilizing readily understandable language

Answer: D

Question 2

A borrower has told the mortgage loan originator that they had recently paid off an account that was listed on their credit report. Which of the following information will they need to provide the lender to prove the account has been paid off?

Options :

A : Oral confirmation from the borrower

B : An updated statement showing a zero balance

C : A letter from the borrower explaining that they paid it off

D : No additional information required

Answer: B

Question 3

Which of the following acts requires mortgage loan originators to complete annual continuing education to satisfy the requirement for licensure?

Options :

A : The SAFE Act

B : The Dodd-Frank Act

C : The Truth in Lending Act (TILA)

D : The Equal Credit Opportunity Act

Answer: A

Question 4

A woman and her son meet with a mortgage loan originator (MLO) about refinancing the mother's home. During the meeting, the MLO senses that the mother is against the transaction and may be being unfairly coerced into the procedure. In which of the following ways should the MLO proceed?

Options :

A : Ask to speak to the mother privately to inquire whether she Is a willing participant in the transaction

B :

[Consider the issue to be a private family matter and proceed with the next steps in the application process

C :

Suggest that the son be listed as a co-borrower on the mortgage to ensure he assumes part of the risk of the loan

D :

Tell the mother that she needs to sign a power of attorney so that her son may complete the transaction on her behalf

Answer: A

Question 5

Which of the following reasons is acceptable for denying a loan under the Equal Credit Opportunity Act (ECOA)?

Options :

A : Receipt of child support

B : Immigration status

C : Marital status

D : Country of birth

Answer: B

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