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SAFE Mortgage Loan Originator Test - National Component with Uniform State Content all Questions & answers solved accurately with Complete Solution Graded A+ latest version$12.99
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SAFE Mortgage Loan Originator Test - National Component with Uniform State Content all Questions & answers solved accurately with Complete Solution Graded A+ latest version
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Course
SPCE 611
Institution
SPCE 611
SAFE Mortgage Loan Originator Test - National Component with Uniform State Content all Questions & answers solved accurately with Complete Solution Graded A+ latest version
SAFE Mortgage Loan Originator Test -
National Component with Uniform State
Content
What does UST stand for? - CORRECT ANSWER-Uniform State Test
Who does the CFPB protect? - CORRECT ANSWER-The Consumer Financial
Protection Bureau protects consumers in the financial marketplace.
What does the CFPB do? - CORRECT ANSWER-CFPB is now in charge of
implementing and enforcing most of the provisions of federal lending laws that
relate to protecting consumers while they are shopping for, securing, and paying
off mortgages.
What is the purpose of RESPA? (3 things) - CORRECT ANSWER-a.Protect
consumers from excessive settlement costs and unearned fees
b.Limit the amount of funds that creditors can require consumers to deposit into
escrow accounts
c.Establish disclosures, policies, and procedures to facilitate timely
communications between loan servicers and consumers
Who is responsible for the enforcement of RESPA and for issuing implementing
regulations? - CORRECT ANSWER-The CFPB
What are RESPA's regulations called? - CORRECT ANSWER-Regulation X
Which 2 documents replaced RESPA's Good Faith Estimate and the
Truth-in-Lending Disclosure? - CORRECT ANSWER-1.) Loan Estimate
2.) Closing Disclosure
What types of mortgages does RESPA cover? - CORRECT
ANSWER-"Federally-related mortgage loans," the requirements of RESPA apply
to virtually every home loan secured by a mortgage.
,What type of loans does RESPA not pertain to? - CORRECT ANSWER-a. Loans
for business, commercial, or agricultural purposes
b. Temporary financing
c. Loans secured by vacant land
d. The sale of a loan into the secondary market
e. Loan conversions (same note - new terms)
Is compensating someone for a referral legal? - CORRECT ANSWER-No!!!
What is "borrower credit"? - CORRECT ANSWER-Historically referred to as
"yield spread premium" (YSP), the borrower credit is a fee paid to the borrower
by the lender when a loan is originated at a higher interest rate than the lowest
rate for which the borrower qualifies. The borrower credit is used to subsidize
closing costs, such as the origination or broker fee, because it is financed so that
out-of-pocket closing costs are "borrowed" from the lender.
What is a markup? - CORRECT ANSWER-A unilateral increase in the cost of a
settlement service and retention of the additional fee by the party making the
markup. The controversy over markups and their legality is discussed in a
subsequent course section. As a practice that may easily lead to litigation, it is
one that should not be used without obtaining legal advice.
What are the 5 disclosures required by RESPA? - CORRECT ANSWER-1.) Loan
Estimate
2.) Closing Disclosure
3.) Settlement Cost Information Booklet
4.) Mortgage Servicing Disclosure Statement
5.) Affiliated Business Arrangement Disclosure
Are creditors allowed to add their name to the cover of the Special Information
Booklet sent to borrowers? - CORRECT ANSWER-Yes
,Are they allowed to translate it into other languages? - CORRECT ANSWER-Yes
Are they allowed to send it with other materials in a larger document? -
CORRECT ANSWER-No
For a loan with a co-borrower, must each applicant receive a Special Information
Booklet? - CORRECT ANSWER-No, only one person has to receive.
After a loan application is submitted, how many business days later must a
borrower receive their Special Information Booklet? - CORRECT ANSWER-3
days (for purchase only)
When is a Special Information Booklet not required to be sent? (3 answers) -
CORRECT ANSWER-1.) A refinance
2.) A closed-end loan secured by a subordinate lien
3.) A reverse mortgage loan
How long does RESPA require a lender to keep each Affiliated Business
Arrangement disclosure? - CORRECT ANSWER-5 years
If a MLO recommends a particular settlement service provider over the phone, in
how many days must a borrower receive a disclosure in the mail? - CORRECT
ANSWER-3 business days
If a settlement service provider refers a loan applicant to an affiliated business for
settlement services, he or she must disclose the affiliated business
arrangement...? - CORRECT ANSWER-At the time the referral is made.
On which document does the lender specify if he will service the loan or sell the
servicing to someone else? - CORRECT ANSWER-On the Loan Estimate
RESPA and Regulation X still impose a requirement on servicers to provide
notice to consumers of any assignment, sale, or transfer of servicing. How many
days before a switch, must a servicer disclose that a switch will occur? -
CORRECT ANSWER-15 days
, How many months cushion can a servicer require a borrower to keep in his/her
escrow account? - CORRECT ANSWER-one sixth of the estimated total annual
disbursements = 2 months payments
If there is a surplus in excess of 2 months required disbursements in one's
escrow account by $45 dollars, must it be returned to the borrower? - CORRECT
ANSWER-No, it will be credited to next year. Only funds equal to or in excess of
$50 must be returned.
What are the 2 mandatory escrow account disclosures? - CORRECT
ANSWER-1.) the initial escrow statement and 2.) the annual escrow statement.
When is the initial escrow statement required to be given to the borrower, and
what must it include? - CORRECT ANSWER-While this disclosure is typically
given at settlement, the lender has 45 days from settlement to deliver it. The
initial escrow statement must show:
1.) The amount of the borrower's mortgage payment and the portion that is
deposited into the escrow account
2.) Itemized taxes, insurance, and other payments to be made from the escrow
account during the computation year
3.) The amount that the servicer has selected as a cushion
4.) A "trial running balance" (the accounting process used to reach target
balances over the course of a computation year)
When is the annual escrow statement required to be disclosed, and what must it
include? - CORRECT ANSWER-This disclosure is due within 30 days of
completion of the escrow account computation year, and it must provide:
1.) An account history and a projection of the payments for the coming year
2.) A statement showing both last year's and the current year's monthly mortgage
payment, and the amount of the payment that is deposited into the escrow
account
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