PREP XL Exam Review Questions and answers, rated A+| LATEST UPDATE | EXAM PREDICTION QUESTIONS |

PREP XL Exam Review Questions and answers, rated A+ This term refers to the practice of adjusting certain types of non-taxable income during underwriting. A.Flopping B.Inflating C.Ballparking D.Grossing up - -grossing up (Certain types of income may be grossed-up during underwriting. Underwriters may gross-up Social Security income, child support, and some other forms of income, subject to limitations based on product type and other guidelines) Which of the following is true when a mortgage product contains a balloon payment? A.A loan that has monthly payments that are equal and regular in nature will never have a balloon payment owing at the end of its term B.A high-cost bridge loan may include provision for a balloon payment C.Under the Dodd-Frank Act, balloon payment loans are no longer permitted D.A qualified mortgage may provide for a balloon payment as long as its term is no less than 40 years - -a high cost bridge loan may include provision for a balloon payment Which of the following would not be considered a settlement service? A.Servicing B.Escrow services C.Origination services D.Appraisal services - -servicing For which of the following reasons may a state deny an application for licensure? A.The applicant had an insurance license in another state that wasn't renewed two years prior to application B.The applicant has current outstanding judgments as a result of medical expenses C.The applicant was convicted of vandalism eight years prior to application D.The applicant had a property foreclosed two years prior to application - -D. the applicant had a property foreclosed two years prior to application (cannot have a foreclosure within past 3 years of application) For which of the following reasons would it be permissible to refuse to take an application from a potential borrower? A.The applicant has poor credit and you do not feel there is any way that he will meet lender guidelines B.You do not "click" with the applicant and would rather not do business with him C.The lender does not accept applications from the neighborhood where the applicant lives D.The applicant has alluded to the fact that he is submitting false documents in order to qualify for a larger loan - -D. the applicant has alluded to the fact that he is submitting false documents in order to qualify for a larger loan Which of the following is not true concerning ECOA? A.It requires lenders to notify loan applicants of their application status within 30 days B.Its provisions are implemented by Regulation B C.It requires lenders to give borrowers a copy of their appraisal and a notice stating they are entitled to a copy of the appraisal D.It requires the disclosure of the APR on all advertisements which contain an interest rate - -D. it requires the disclosure of the APR on all advertisements which contain an interest rate. Which of the following is true regarding a lender's ability to collect an appraisal fee? A.This is not allowed until closing B.This is allowed as long as the borrower has received the Loan Estimate and expressed an intent to proceed C.This is allowed as long as the borrower has expressed an intent to proceed D.This is allowed as long as the Loan Estimate has been mailed - -B. this is allowed as long as the borrower has received the loan estimate & e