HECM Exam 3- home equity conversion mortgage (100% correct answers)
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Course
HECM
Institution
HECM
D - -What is the more common name of Title V of the Housing and Economic Recovery Act
of 2008?
a) FACTA
b) Gramm-Leach-Bliley Act
c) Red Flag Rules
d) SAFE Act
B - -3) Which of the following is NOT an involuntary lien? a) Judgement lien
b) Mortgage lien
c) Mechanic's lien
d) IRS tax lien
...
HECM Exam 3- home equity conversion
mortgage (100% correct answers)
D - ✔✔-What is the more common name of Title V of the Housing and Economic Recovery Act
of 2008?
a) FACTA
b) Gramm-Leach-Bliley Act
c) Red Flag Rules
d) SAFE Act
B - ✔✔-3) Which of the following is NOT an involuntary lien? a) Judgement lien
b) Mortgage lien
c) Mechanic's lien
d) IRS tax lien
C - ✔✔-2) Under ECOA, which of the following may NOT be considered adversely when
underwriting the loan?
a) borrower's employment history
b) borrower's history of making payments on past obligations
c) borrower's receipt of public assistance
d) economic health of the borrower's field of employment
C - ✔✔-12) The rule that bans providers of mortgage foreclosure rescue and loan modification
services from collecting fees until homeowners have a written offer from their lender or servicer
that they decide is acceptable is the
a) 3/7/3 Rule.
b) Loan Originator Compensation Rule.
c) MARS Rule.
d) Safeguards Rule.
C - ✔✔-15) A lender has how many days to notify the borrower of an underwriting decision? a)
3
b) 10
c) 30
d) 60
C - ✔✔-16) RESPA applies to all
a) business loans with collateral.
b) commercial real estate loans.
c) real estate credit transactions for one- to four-family dwellings. d) real estate purchase
transactions.
, C - ✔✔-22) The estimate for most settlement charges shown on a Loan Estimate must be
available for
at least ____ business days. a) 3
b) 7
c) 10
d) 14
B - ✔✔-25) The APR on an initial Loan Estimate for a 30-year fixed rate loan is 5.99%, and the
APR on the final Closing Disclosure is 6.25%. After redisclosure, how long must the borrower
wait to close the loan?
a) one business day
b) three business days after redisclosure
c) seven business days after redisclosure
d) There is no waiting period required since the difference is within the acceptable
tolerance.
A - ✔✔-27) The Dodd-Frank Act definition of a qualified mortgage includes all of these features
EXCEPT
a) interest-only loan offerings.
b) limits on debt-to-income ratios.
c) no excessive upfront points and fees. d) no terms beyond 30 years.
A - ✔✔-30) Which of the following is an acceptable condition on which to base a mortgage loan
originator's compensation?
a) a fixed percentage of the loan amount
b) a percentage of all fees collected on the loan c) a premium based on the interest rate
selected
d) a premium for lower LTV loans
C - ✔✔-31) Each of these are characteristics that could make a loan nontraditional EXCEPT
a) 15-year term.
b) adjustable rate.
c) fixed rate.
d) temporary buydown.
C - ✔✔-32) In which federal law would you find the definition of a nontraditional loan? a)
Homeowners Equity Protection Act
b) Real Estate Settlement Procedures Act (RESPA)
c) Secure and Fair Enforcement for Mortgage Licensing Act
d) Truth in Lending Ac
C - ✔✔-35) 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) par rate.
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