30 Questions
What type of loans are secured by a consumer's principal dwelling with an APR that exceeds the average prime offer rate by 1.5 percentage points?
Higher-Cost loans
What is the name of the regulation implementing the Truth in Lending Act?
Regulation Z
What does the annual percentage rate (APR) represent?
Cost of a borrower's credit calculated as an annual rate
How many hours of continuing education must a state-licensed loan originator complete to meet the annual requirement?
15 hours of CE
What type of mortgage loan has an interest rate that remains fixed for a certain period then changes over time based on a market index?
Hybrid ARM
What is the date on which Mr. and Mrs. Smith are closing on a home?
January 10, 2011
What is the percentage of LTV approved by the lender for the Smith's mortgage loan?
90%
How much pre-paid interest must the Smith's pay at closing, assuming a 360-day calendar year?
$1,238.19
Within how many days of receiving a completed application must a mortgage loan originator notify an applicant of action taken on their request?
30 days
What type of mortgage provides an elderly borrower with a monthly check instead of the borrower paying a monthly payment?
Reverse mortgage
What is the name of FHLMC's automated underwriting system?
Desktop Underwriter
What does Section 8 of RESPA prohibit?
Giving or receiving a fee or thing of value for referrals
What is the maximum prison sentence for a violation of the SAFE Act?
30 years
What type of deterioration refers to a loss in value caused by factors outside the property itself?
External obsolescence
What is included in the housing expense to income ratio (Front End Ratio)?
Homeowner’s Insurance
What type of mortgage product is not considered a nontraditional mortgage product?
30 year Fixed Rate Loan
Who can provide gift funds for a down payment according to FHA underwriting guidelines?
The borrower’s family member
How many basis points is 3.5 discount points?
350 bpts
Mortgage loan originators who make cold calls must update their download of the National Do-Not-Call registry at least every:
31 days
Which appraisal approach is used as the best indicator of value for existing properties?
Sales Comparison Approach
Which regulation implements the Equal Credit Opportunity Act?
Regulation B
What is the maximum percentage of financing concessions that FHA sellers are permitted to provide?
6 percent of the sales price
What is the allowable tolerance for the Final APR disclosed in a regular transaction?
0.125%
What minimum score is required to pass the NMLS-developed Mortgage Loan Originator Test?
80% or better
According to TRID, when must the Closing Disclosure be completed and made available for inspection?
3 business days prior to consummation
What is the maximum LTV allowed for VA loans?
97%
What is the primary factor considered in the VA's debt-to-income ratio?
Residual income calculation
Which of the following is NOT prohibited by the Equal Credit Opportunity Act?
Immigration status
How often can an individual retake the SAFE Act qualified test?
Every 30 days after the preceding test
Which of the following loans is excluded from the Ability-to-Repay Rule requirements?
VA loan
Test your knowledge of mortgage loan originator fundamentals, including compliance with the National Do-Not-Call registry and appraisal approaches. This quiz covers key concepts and rules for mortgage loan originators.
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