Question 1

Which of the following factors is considered when determining the interest rate for a subprime mortgage?

Options :

A : The term of the loan

B : The property location

C : The sales price of the property

D : The credit score of the applicants]

Answer: D

Question 2

Which of the following circumstances may indicate fraud with respect to the assets a borrower will use for closing?

Options :

A : Bank deposits that are not supported by income or other disclosures

B : Disclosure of gift funds

C : Parental loans disclosed but not yet received

D : Borrower-s receipt of a large bonus from an employer

Answer: A

Question 3

An easement:

Options :

A : is a mortgage modification.

B : is a right to cross or otherwise use someone else-s land for a specified purpose.

C : allows a loan applicant to close on a loan even if all the stipulations have not been met.

D :

allows a borrower to make less than the required payments without going through a full mortgage modification.

Answer: B

Question 4

Under the TILA-RESPA Integrated Disclosure rule (TRID), what is the minimum time period that must pass between a borrower's receipt of a Loan Estimate and the closing of a mortgage loan?

Options :

A : 7 business days

B : 15 business days

C : 30 business days

D : 45 calendar days

Answer: A

Question 5

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

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