Question 1

Which of the following items is a liquid asset?

Options :

A : Antique jewelry

B : Publicly traded stocks

C : Net worth of a business

D : An automobile owned free and clear

Answer: B

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 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

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

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