CompuCram -- Uniform State Content (Practice Test) || with 100% Errorless Answers.
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CompuCram -- Uniform State Content
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CompuCram -- Uniform State Content
What law requires the term equal housing lender to be used in any advertisement that is broadcast over the airwaves?
A. Equal Credit Opportunity Act
B. Truth In Lending Act
C. Fair Housing Act
D. Fair Credit Reporting Act correct answers C. Fair Housing Act -- The Fair Housing Act requires th...
CompuCram -- Uniform State Content (Practice Test) || with
100% Errorless Answers.
What law requires the term equal housing lender to be used in any advertisement that is broadcast over the airwaves?
A. Equal Credit Opportunity Act
B. Truth In Lending Act
C. Fair Housing Act
D. Fair Credit Reporting Act correct answers C. Fair Housing Act -- The Fair Housing Act requires that the Equal Housing Opportunity logo be displayed in all printed material and the term equal housing lender must be used when broadcast over the airwaves.
If you tell your mortgage loan applicant that his monthly check from public assistance is not an acceptable source of income, you will be in violation of
A. the Fair Housing Act
B. the Civil Rights Act of 1866
C. no federal law
D. the ECOA correct answers D. the ECOA -- Considering the borrower's receipt of public assistance if the applicant adequately met all other criteria would be a violation of the Equal Credit Opportunity Act (ECOA). All people must be considered for credit equally on the basis of
income adequacy, sufficient net worth, job stability, and satisfactory credit rating.
What law is violated if a mortgage loan originator discourages a disabled man who receives Social Security Income(SSI) from applying for a mortgage?
A. HMDA
B. ECOA
C. This would not be a violation of any law
D. Fair Housing Act correct answers B. ECOA -- While a lender should never make a loan to someone who is unqualified to repay it, someone should never be discouraged from making the application, according to the Equal Credit Opportunity Act (ECOA), on the basis of membership in a protected class." HOWEVER... the Fair Housing Act specifically prohibits discrimination based on physical and/or mental handicap, whereas ECOA does not offer that protection. And as SSI income is always considered, it likely would not be covered under ECOA.
Which situation is not a red flag that illegal flipping may be taking place?
A. a group of sellers and buyers changing ownership of one property among them.
B. a series of sales and quick resales
C. an inflated appraisal
D. purchasing and remodeling a house and selling it for a profit correct answers D. purchasing and remodeling a house and selling it for a profit -- Purchasing and remodeling a house and then selling it for a profit is the good side of flipping, which is perfectly legal. The illegal side of flipping is when colluding parties profit from the sale of property with an inflated appraisal that supports a loan. It may involve a series of sales and quick resales, with one property and a group of sellers and buyers changing ownership among them.
Which is NOT considered a third party fee?
A. title search
B. survey
C. broker commission
D. pest inspection correct answers C. broker commission -- The broker's commission is not considered a third party fee. Third party fees are limited to charges actually incurred by the lender on behalf of the borrower, and paid to a separate, third party. Other third party fees may include flood certification, radon test.
RESPA's Section 8 prohibits all fees except
A. receiving a referral fee
B. unearned fees
C. giving a referral fee
D. earned fees correct answers D. earned fees -- RESPA's Section 8 prohibits any kinds of kickback, unearned fee, or referral fee. Earned fees are certainly allowed.
When must a mortgage loan originator give a borrower a Loan Estimate?
A. at least 10 days before the loan closes
B. at closing
C. only when the borrower requests one
D. within 3 business days of when the application is completed correct answers D. within 3 business days of when the application is completed -- A Loan Disclosure, which lists the charges
the borrower is likely to pay at settlement, must be given to a borrower within three business days of the loan application.
Which of the following is NOT an indicator of predatory lending?
A. requiring mortgage insurance
B. falsifying loan documents
C. increasing interest charges on late loan payments
D. charging excessive prepayment penalties correct answers A. requiring mortgage insurance -- Of these, requiring mortgage insurance is not a red flag indicating predatory lending as the other choices may likely be.
Initial interest rates that are much lower than the normal interest rate, with the rate usually returning to the normal interest rate at the first adjustment, is known as a
A. teaser rate
B. premium rate
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