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TX RMLO: Questions & Expert Verified Answers
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TX RMLO: Questions & Expert Verified Answers
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TX RMLO: Questions & Expert Verified AnswersA homeowner is taking out a home improvement loan to finance a room
addition to his or her homestead. Which of the following is true regarding
when the construction contract must be signed? Right Ans - It must be
signed no sooner than 5 days after making the application for the loan.
Under the TX Homestead Law, the construction contract for a home
improvement loan be be signed at any of the following EXCEPT Right Ans -
The office of the contractor
A home equity loan secured by a Texas homestead cannot close until at least _
days after receipt of the special disclosure form. Right Ans - 12
A person who is employed by a mortgage licensee to perform "clerical or
support" duties only could engage in each of the following activities EXCEPT:
Right Ans - Counseling the applicant about whether to apply for a fixed rate or
variable rate loan
A home equity loan against a TX homestead cannot close until at least _ after
receipt of an itemized disclosure of the actual fees, points, interest, costs, and
charges that will be charged at closing. Right Ans - 1 business day
A home equity loan secured by a TX homestead may include which of the
following loan characteristics. Right Ans - Neither negative amortization
nor prepayment penalty
A home equity loan secured by a TX Homestead may charge Right Ans -
Either fixed or adjustable interest rates
Which of the following payment schedules would be permissible for a home
equity loan against a TX homestead Right Ans - Either monthly or bi
weekly payments
Fred has obtained a home equity loan on his TX Homestead. If the total
secured debt was 90% of the value of the property, what might the lender
incur for the violation? Right Ans - It would have to forfeit the principal and
interest of 10% of the value of the property
, Which of the following practices would be permissible for a home equity loan
secured by a TX homestead? Right Ans - The borrower may not be required
to assign wages as security for the loan and may not be required to sign a
confession off judgement
A loan secured by a voluntary lien on a homestead may only be created under
a written contract with the consent of: Right Ans - All owners and all
owners spouses
In a home equity line of credit against a TX homestead, the minimum advance
under the line of credit is: Right Ans - 4,000
The owner of a TX homestead that has not outstanding mortgage debt took
out a home equity line of credit (HELOC)/. No advance against that HELOC
would be permitted that brought the loan balance above: Right Ans - 80%
of the fair market value at the time of the establishment of the HELOC
A borrower on home equity loan discovers a violation of the TX law regarding
home equity loans secured by a TX homestead. The borrower provides the
lender with proof of the violation. The lender would be required to forfeit the
principal and interest on the loan: Right Ans - If the lender fails to take
corrective action within 60 days
Which statement is most accurate regarding the age requitment for a HECM
loan? Right Ans - The youngest borrower must be at least 62 years old
The origination fee on a HECM loan will be no more than: Right Ans -
$6,000
What is the maximum loan amount for a HECM loan? Right Ans - $625,000
or the appraised value of the property, whichever is lower
The outstanding loan balance of a reverse mortgage must be repaid in each of
the following cases, EXCEPT: Right Ans - ** The specified term of the term
payment option expires ** , The home is sold, The borrowers default on the
loan, All of the borrowers move out of the home for a period of more than 12
consecutive months.
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