20 Hour SAFE Comprehensive practice Exam Questions Answered & Graded
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Course
20 Hour SAFE Comprehensive
Institution
20 Hour SAFE Comprehensive
You're a loan originator working with a consumer, helping him to obtain a loan. What form does he need to sign for you to request this information? - Correct Answer The Borrower's Signature Authorization form
When is the final title insurance policy issued? - Correct Answer After the final set...
20 Hour SAFE Comprehensive
practice Exam Questions Answered
& Graded
You're a loan originator working with a consumer, helping him to obtain a loan. What form does he need
to sign for you to request this information? - Correct Answer The Borrower's Signature Authorization
form
When is the final title insurance policy issued? - Correct Answer After the final settlement on the
property has occurred, and specific conditions outlined in the preliminary title commitment have been
satisfied
When is the final deadline for renewing licenses? - Correct Answer December 31
An appraiser received a job to appraise a property located in the same city where her personal home is
located. Does a conflict of interest exist if she conducts the appraisal? - Correct Answer No, unless she
has a personal or business relationship with the seller or buyer of the property, there's no conflict of
interest.
Which one of the following is NOT classified as a loan origination fee? - Correct Answer Title search fee
If a title defect occurred prior to the seller's ownership, then the seller would need to ______. - Correct
Answer Contact his title insurance company and file a claim against the title insurance he purchased
when he bought the property
If a buyer purchases a property for $500,000 and his loan-to-value ratio is 90%, how much is the buyer
financing? - Correct Answer $450,000
Under RESPA, which of the following fees and compensation are permitted? - Correct Answer A salary
paid to an MLO for loan originating activities is permitted.
What are discount points? - Correct Answer Up-front fees that reduce the interest of the loan
, Fannie Mae buys mortgages on the secondary market from larger retail banks and ______. - Correct
Answer Commercial banks
On which of the following are loan originators required to disclose their unique identifier? - Correct
Answer All loan applications and marketing materials, including social media
In a loan transaction involving a mortgage broker, which of the following statements is true? - Correct
Answer The lender must provide the LE to the borrowers.
How long does a mortgage servicer have to refund escrow funds to the borrower? - Correct Answer 20
business days
What is the purpose of the Know Before You Owe special initiative? - Correct Answer To help consumers
understand what loan options are available and avoid large, costly surprises at closing.
An ARM's starting interest rate is 2.8% and the loan has a cap structure of 1/2/5. What is the maximum
possible interest rate for the entire loan term? - Correct Answer 5%
Which one of the following MLO applicants is qualified to become licensed? - Correct Answer John, who
completed all his pre-licensing education
During an MLO's loan application file review, he noted that a deposit of $8,000 was put in the applicant's
checking account 30 days ago. Before this deposit, the applicant typically had $1,800 deposits every two
weeks from her employer. The applicant didn't include any documentation related to the deposit. What
type of red flag is this? - Correct Answer Bank activity
Which HUD program assists very low-income families, the elderly, and disabled individuals to afford
decent, safe, and sanitary housing in the private market? - Correct Answer Housing Choice Voucher
Program
Which one of the following statements about closing agent fees is true? - Correct Answer The borrower
may be reimbursed for closing agent service fees in circumstances where the lender chooses the closing
agent.
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