Free Printable NMLS REPASO

1.

Harper and Mason were discussing the Tila-Respa integrated Disclosure Rule

They were curious about when the law became effective

a)

May 1

b)

October 3,2015

c)

October 15, 2003

2.

Mason is buying his first home and is learning about the mortgage process. What is the primary purpose of the TILA-RESPA Integrated Disclosure Rule?

a)

To simplify the mortgage process

b)

To increase interest rates

c)

To eliminate closing costs

3.

Luna is buying her first home and is reviewing the loan documents. She wants to know which agency is responsible for enforcing the TILA-RESPA Integrated Disclosure Rule. Can you help her?

a)

Consumer Financial Protection Bureau (CFPB)

b)

Federal Reserve

c)

Department of Housing and Urban Development (HUD)

4.

What documents are combined under the TILA-RESPA Integrated Disclosure Rule?

a)

Title Insurance and Appraisal Report

b)

Loan Estimate and Closing Disclosure

c)

Mortgage Application and Credit Report

5.

Elijah is applying for a mortgage loan. When must the Loan Estimate be provided to him under the TILA-RESPA Integrated Disclosure Rule?

a)

Within 10 business days of receiving the loan application

b)

At the time of closing

c)

Within 3 business days of receiving the loan application

6.

Abigail is buying her first home and is learning about the TILA-RESPA Integrated Disclosure Rule. Which of the following is NOT a requirement she needs to be aware of?

a)

Providing a Closing Disclosure

b)

Providing a Loan Estimate

c)

Providing a monthly payment breakdown

7.

Sophia is buying her first home and is reviewing the Loan Estimate provided by her lender. What is the maximum allowable variance between the Loan Estimate and the actual closing costs under the TILA-RESPA Integrated Disclosure Rule?

a)

10%

b)

0%

c)

15%

8.

Olivia is curious about the TILA-RESPA Integrated Disclosure Rule. Which of the following is a key benefit of this rule for consumers?

a)

Increased loan processing fees

b)

Greater transparency in loan terms

c)

Longer loan approval times

9.

Jackson is reviewing his mortgage documents. Under the TILA-RESPA Integrated Disclosure Rule, how many days before closing must the Closing Disclosure be provided to him?

a)

3 days

b)

1 day

c)

7 days

10.

Emma is learning about the TILA-RESPA Integrated Disclosure Rule. Which of the following is a document she will NOT receive as part of this rule?

a)

Annual Percentage Rate Disclosure

b)

Closing Disclosure

c)

Loan Estimate

11.

If a Loan Estimate is changed, when must a revised Loan Estimate be sent to the customer?

a)

Within 4 business days of the change

b)

Within 7 business days of the change

c)

Within 3 days of consumation

d)

Within 3 business days of the change

12.

How many days prior to loan consummation must the initial Loan Estimate be sent to the customer?

a)

7 business days by US mail prior to consummation

b)

10 business days by US mail prior to consummation

c)

4 business days by US mail prior to consummation

d)

3 business days by US mail prior to consummation

13.

If a customer does not express an intent to proceed with a loan transaction, how long is the Loan Estimate valid for?

a)

5 business days

b)

10 business days

c)

30 calendar days

d)

10 calendar days

14.

A lender must send the initial Loan Estimate to the customer no later than:

a)

7 business days after the application

b)

No later than when the appraisal is completed

c)

3 business days after the application

d)

3 business days prior to consummation

15.

If a lender must re-disclose a Loan Estimate for a valid change of circumstance, the lender must send it:

a)

Within 1 business day of discovering the change

b)

3 business days before loan consummation

c)

At least 7 business days prior to loan consummation

d)

Within 3 business days of discovering the change

16.

The initial Loan Estimate sent to the customer how many days prior to loan consummation?

a)

7 business days

b)

3 business days

c)

4 business days

d)

10 business days

17.

A consumer must receive the Closing Disclosure no later than:

a)

4 business days prior to loan consummation

b)

3 business days prior to loan consummation

c)

7 business days prior to loan consummation

d)

3 business days after Initial Loan Estimate is completed

18.

Per TILA, how long must advertising records be retained for?

a)

12 months

b)

25 months

c)

36 months

d)

24 months

19.

How long must a lender retain records of the Closing Disclosure?

a)

3 years

b)

5 years

c)

2 years

d)

10 years

20.

How long must a lender retain records of the Loan Estimate?

a)

5 years

b)

3 years

c)

2 years

d)

4 years

21.

If a loan is determined to be a Higher Priced Mortgage Loan, after how many years can a customer terminate the escrow from their mortgage payment?

a)

3 years

b)

5 years

c)

2 years

d)

7 years

22.

Per RESPA and the Loan Estimate, how long must records be retained?

a)

36 months

b)

24 months

c)

25 months

d)

60 months

23.

Per RESPA and TILA, the final Loan Estimate must be received by the borrower(s):

a)

At least 3 business days prior to loan consummation

b)

At least 7 business days prior to loan consummation

c)

4 Calendar days prior to loan consummation

d)

At least 4 business days prior to loan consummation

24.

Per RESPA and TILA, if there is a valid change of circumstance, when does the lender have to re-disclose the updated Loan Estimate?

a)

Within 3 business days of the changed circumstance

b)

Within 7 business days of the changed circumstance

c)

3 business days prior to consummation

d)

Within 4 business days of the changed circumstance

25.

When must the special information booklet be sent to the borrower?

a)

Immediately after filling out application

b)

Within 3 business days of application

c)

Within 3 calendar days of application

d)

No time table

26.

Higher-priced Mortgage Loans (HPML) are required to maintain escrow accounts for how long?

a)

5 years

b)

3 years

c)

2 years

d)

4 years

27.

Per the Home Mortgage Disclosure Act (HMDA), how often does a lender have to disclose Loan Application Register (LAR)?

a)

Monthly

b)

Quarterly

c)

Annually

d)

Once every 8 months

28.

On a 2/1 Buydown loan, if the permanent note rate is 10.5%, what is the rate in the 3rd year of the loan?

a)

10.5%

b)

8.5%

c)

9.5%

d)

12.5%

29.

On a 2/1 Buydown loan, if the permanent note rate is 6.5%, what is the rate in the 1st year of the loan?

a)

6.5%

b)

4.5%

c)

5.5%

d)

8.5%

30.

On a 2/1 Buydown loan, if the permanent note rate is 9.375%, what is the rate in the 2nd year of the loan?

a)

9.375%

b)

7.375%

c)

8.375%

d)

10.375%

31.

On an ARM product the start rate is 3%. On the initial rate adjustment, if the index is now 1.30% and the margin is 3.15%, what is the fully indexed rate? ROUND ANSWER TO THE NEAREST 1/8 (.125)

a)

3.0%

b)

4.50%

c)

4.45%

d)

69%

32.

Real Estate Settlement Procedures Act (ESPA) Regulation X

NOT APPLICABLE TO:

select all that apply

a)

All cash sales

b)

Rental property of more than 4 units

c)

Commercial properties

d)

Property with 25+ acres

e)

1–4-unit residential property/mortgage loans (duplexes)

33.

Real Estate Settlement Procedures Act (ESPA) Regulation X

Disclosures required byRESPA:

Special information _ (a) (aka Your Home Loan Toolkit)

34.

Real Estate Settlement Procedures Act (ESPA) Regulation X

Disclosures required by RESPA:

Affiliated (a) Arrangement

35.

In 2008, the Housing and Economic Recovery Act (HERA) initiated a subsequent act that required states to standardize the license and application process for mortgage loan originators to ensure greater consumer protection. What was this act called?

a)

Dodd-Frank Act

b)

Patriot Act

c)

SAFE Act

d)

HERA

36.

The Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators are responsible for:

a)

Writing HERA and enforcing all the federal mortgage laws

b)

Writing the SAFE act and maintaining the NMLS

c)

Creating the CFPB and maintaining the NMLS

d)

Writing the conforming guidelines and purchasing loans from the primary market

37.

Which of the following does a Mortgage Loan Originator (MLO) not do?

a)

Take a 1003 application

b)

Negotiate rates and fees of the loan

c)

Assist a customer in applying for a residential mortgage loan

d)

Perform judgment on the loan file

38.

SAFE Pre-licensing education is broken down by:

a)

8 hours with 3 hours Federal Law, 3 hours Ethics, 2 hours Non-Traditional Lending, 1 hour elective

b)

10 hours with 3 hours Federal Law, 3 hours Ethics, 3 hours Non-Traditional Lending, 1 hour elective

c)

20 hours with 3 hours Federal Law, 3 hours Ethics, 2 hours Non-Traditional Lending, 12 hours electives

d)

20 hours with 3 hours Federal Law, 2 hours Ethics, 3 hours Non-Traditional Lending, 12 hours general mortgage knowledge

39.

SAFE continuing education is broken down by:

a)

8 hours with 2 hours Federal Law, 3 hours Ethics, 2 hours Non-Traditional Lending, 1 hour elective

b)

8 hours with 3 hours Federal Law, 2 hours Ethics, 2 hours Non-Traditional Lending, 1 hour elective

c)

5 hours with 3 hours Federal Law, 1 hour Ethics, 1 hour Non-Traditional Lending, 1 hour elective

d)

12 hours with 3 hours Federal Law, 2 hours Ethics, 2 hours Non-Traditional Lending, 5 hours general mortgage knowledge

40.

A registered MLO works for what types of institutions:

a)

Depository institution such as a correspondent lender

b)

State licensed lender such as a credit union

c)

Depository institution such as a bank

d)

Subsidiary of a mortgage lender such as a broker

41.

The maximum length of a prepayment penalty allowed is:

a)

6 months from the start of the loan

b)

1 year from the start of the loan

c)

2 years from the start of the loan

d)

3 years from the start of the loan

42.

The maximum amount of penalty that can be charged for a prepayment penalty is:

a)

6 months of interest

b)

1% of the remaining loan balance

c)

2% of the remaining loan balance

d)

2% of the original loan balance

43.

What is the clause on a note that allows a lender to call a loan due prior to the scheduled amortization date if the borrower defaults on the payments?

a)

Non-recourse clause

b)

Due-on-sale clause

c)

Re-conveyance clause

d)

Acceleration clause

44.

The primary agency that is responsible for enforcing most of the mortgage federal laws is the:

a)

Conference of State Bank Supervisors

b)

Consumer Financial Protection Bureau

c)

Federal Trade Commission

d)

American Association of Residential Mortgage Regulators

45.

The two positions that normally perform clerical and support duties are:

a)

MLO and broker

b)

Processor and Underwriter

c)

Mortgage broker and real estate broker

d)

Processor and MLO

46.

Processors and Underwriters normally do not need to have an MLO license unless:

a)

They work for a depository institution

b)

They work for a state licensed institution

c)

They have frequent contact with customers

d)

They are an independent contractor

47.

If a servicer approves a loan to be assumed, the original borrower will be released from any future liability on the loan if the note has a:

a)

Assumption clause

b)

Acceleration clause

c)

Recourse clause

d)

Non-recourse clause

48.

What is the standard maximum fine allowed by state regulators for violations?

a)

$5,000

b)

$25,000

c)

$50,000

d)

Only the CFPB can issue fines for violations

49.

Which of the following best describes the Settlement Agent that conducts the closing of a home loan?

a)

The notary is the Settlement Agent

b)

The attorney is the Settlement Agent

c)

The Escrow Officer is the Settlement Agent

d)

The Title company or Escrow company is the Settlement Agent

50.

The profit a lender makes when they sell the servicing rights to another lender is referred to as:

a)

Subrogation

b)

Service Release Premium

c)

Remittance

d)

Settlement Charges

51.

Select the statement that is true about Sections 32 & 35 of HOEPA...

a)

HOEPA Section 32 loans don't meet the same APR and APOR criteria as Section 35 loans, and Section 32 loans also include three additional criteria, which do not apply to Section 35 loans.

b)

HOEPA Section 32 loans must also meet the same APR and APOR criteria as Section 35 loans, but Section 35 loans also include three additional criteria, which do not apply to Section 32 loans.

c)

HOEPA Section 32 loans must also meet the same APR and APOR criteria as Section 35 loans, but Section 32 loans also include three additional criteria, which do not apply to Section 35 loans.

d)

HOEPA Section 32 loans must meet the same APR criteria, but not the APOR criteria. Section 32 loans also include three additional criteria, which do not apply to Section 35 loans.

52.

Who regulates the Truth-in-Lending Act (TILA) Regulation Z?

a)

CFPB

b)

FDA

c)

PDFA

d)

CFTC

53.

Select that statements that are TRUE about TILA?

a)

Enacted in 1968

b)

The first law with disclosures to protect consumers from unfair creditors

c)

both borrowers must exercize right

d)

Every party with ownership receive 1 copy.

54.

True or False:

The Mortgage Disclosure Improvement Act (MDIA) & 3/7/3 Rule are Associated with TILA.

a)

True. It sets timing requirements for initial disclosures, earliest consummation, and redisclosure of inaccurate APR

b)

False. It sets timing requirements for initial disclosures, earliest consummation, and redisclosure of inaccurate APR

c)

True. It used to set timing requirements for initial disclosures, earliest consummation, and redisclosure of inaccurate APR. Not anymore.

d)

IDFK

55.

What/Who determines the definition of a business day (with loan estimate 'LE' as an exception)?

a)

CFPB

b)

TILA

c)

HOEPA

d)

RESPA

56.

The following is a chart that refers to Section (a) :

57.

The following is a chart that refers to Section (a) :

58.

RESPA – TILA – TRID

Time Requirements for Important Disclosures:

LE (no later than 3 business days after receiving app – no later than 7 business days prior to closing)

Your Home Loan Toolkit: A Step-by-Step Guide

CHARM Booklet

Variable-rate program disclosures

Home equity plan disclosures

Notice of right to receive an appraisal report

Mortgage Servicing Disclosure (if the app is taken in person, it is due immediately)

.....the above is all due within __ business days of the loan application

a)

1

b)

2

c)

3

d)

4

59.

RESPA – TILA – TRID

Time Requirements for Important Disclosures:

Initial Privacy Notice- due no later than when you establish a _________.

a)

response from agent

b)

customer relationship

c)

signed contract

d)

food baby

60.

RESPA – TILA – TRID

Time Requirements for Important Disclosures:

CD- due __ business days prior to ___

a)

2 : meeting

b)

3 ; closing

c)

3 ; establishing customer relationship

d)

5 ; birth

61.

RESPA – TILA – TRID

Time Requirements for Important Disclosures:

Revised LE- due within 3 business days of receiving information prompting the change and at least __ business days prior to __

a)

3 ; leaving

b)

3 ; closing

c)

4 ; closing

d)

5 ; closing

62.

RESPA – TILA – TRID

Time Requirements for Important Disclosures:

Revised CD- due at or before ____

a)

leaving

b)

viewing paperwork

c)

calling

d)

closing

63.

RESPA – TILA – TRID

Time Requirements for Important Disclosures:

Affiliated Business Arrangement- due at the time of _____

a)

leaving

b)

referral

c)

referring to agent

d)

closing

64.

Real Estate Settlement Procedures Act (RESPA) Regulation X

BACKGROUND:

-Enacted in (a)

65.

Real Estate Settlement Procedures Act (RESPA) Regulation X

BACKGROUND:

-Regulated by the (a) (acronym)

66.

Real Estate Settlement Procedures Act (RESPA) Regulation X

BACKGROUND:

-In 2015: require the use of new disclosures – __ and (a)

(type "and" to get all points)

67.

The principle of substitution is the basis for the

a)

Substitution approach

b)

Loan estimate

c)

Sales comparison approach

d)

Deed

68.

is a report made by a real estate professional that examines market statistics to provide a likely property value but is not an appraisal.

a)

Sales analysis

b)

Sales comparison approach

c)

Comparative market analysis

d)

Market sales report

69.

Real estate taxes are typically ______ based on the settlement date on the closing disclosure.

a)

Pre-rated

b)

Prorated

c)

Post-rated

d)

Disclosed

70.

The ____ would be well suited to a residential 10 unit apartment building.

a)

Escrow approach

b)

Sales comparison approach

c)

Loan approach

d)

Income Approach

71.

A two thousand square foot house with one bathroom may be suffering from

a)

Short loan

b)

Decay

c)

Functional obsolescence

d)

Mold

72.

A licensee whose license is on _____ may not provide real estate brokerage services through that license.

a)

Active status

b)

Inactive status

c)

Seller status

d)

Buyer status

73.

he maximum payout from the Guaranty Fund is

a)

500,000

b)

5,000

c)

50,000

d)

500

74.

The primary objective of the CFPB’s new integrated disclosures is to combine the disclosure requirements that are found under which two federal laws?

a)

TILA and HMDA

b)

ECOA and RESPA

c)

ECOA and TILA

d)

RESPA and TILA

75.

The date on which mortgage professionals had to begin using the new integrated disclosures and complying with their corresponding regulations was:

a)

March 1, 2015

b)

January 30, 2015

c)

October 3, 2015

d)

December 1, 2015

76.

The CFPB’s integrated Loan Estimate primarily replaces:

a)

The Good Faith Estimate and the initial Truth in Lending disclosure

b)

The HUD-1 and the Special Information Booklet

c)

The Good Faith Estimate and the HUD-1

d)

The initial Truth in Lending disclosure and the HUD-1

77.

Which of the following loan programs are affected by the new integrated disclosures?

a)

Reverse Mortgage

b)

HELOC

c)

FHA Mortgages

d)

Unattached Mobile Home

78.

If a lender has to send disclosures via U.S. Mail, then a lender will be subject to the “Mailbox Rule.” Which of the following best describes the “Mailbox Rule?”

a)

Customer receives disclosures 3 business days after lender sends disclosures

b)

A customer is presumed to receive the disclosures 1 business day after the lender sends the disclosures

c)

A customer is presumed to receive the disclosures 7 business days after the lender sends the disclosures

d)

Even if a customer receives the disclosures sooner than presumed, a lender is not allowed to override the “Mailbox Rule” waiting period

79.

For purposes of complying with the deadlines for providing consumers a Loan Estimate, for most mortgage lenders the term “business day” includes:

a)

Federal holidays

b)

State holidays

c)

Saturdays, If it is a day the creditor is open for business

d)

Sundays, if it is a day when the creditor is open for business

80.

A lender must send the initial Loan Estimate to the customer no later than:

a)

7 business days after the application

b)

Must be delivered the same day the application was obtained

c)

3 business days after the application

d)

No later than when the appraisal is completed

81.

If a lender must re-disclose a Loan Estimate for a valid change of circumstance, the lender must send it:

a)

At the time of consummation

b)

Within 1 business day of discovering the change

c)

At least 7 business days prior to loan consummation

d)

Within 3 business days of discovering change

82.

The CFPB’s integrated Closing Disclosure replaces:

a)

The HUD-1 and the Good Faith Estimate

b)

The initial Truth and Lending disclosure and the Special Information Booklet

c)

The HUD-1 and Final Truth in Lending disclosure

d)

The Good Faith Estimate and the Mortgage Servicing disclosure

83.

If a customer uses the 3rd party services of one of the mortgage lender’s affiliates, how much can that fee change between the Loan Estimate and the Closing Disclosure?

a)

5%

b)

0%

c)

10%

d)

No limit

84.

Which of the following charges is not permitted to vary from the Loan Estimate to the Closing Disclosure?

a)

Transfer Taxes

b)

Prepaid Interest

c)

Amounts placed in escrow account

d)

Property Insurance Premiums

85.

How long must a lender retain records of the Closing Disclosure?

a)

1 Year

b)

2 Years

c)

4 Years

d)

5 Years

86.

If a real estate broker referred a client to a MLO and then the broker asked the MLO for a referral fee, what should the MLO do?

a)

Obtain a affiliated business contract

b)

Pay the referral fee

c)

Ignore Real Estate Broker

d)

Do not pay the referral fee

87.

What must be included on advertisements?

a)

Lenders Unique Identifier

b)

Lenders Fax Number

c)

Finance Charge

d)

Both fixed and ARM product

88.

If a home loan has a prepayment penalty, on which documentation will it be listed?

a)

The Note

b)

The Note and Closing Disclosure

c)

The Note and Deed of Trust

d)

Loan Estimate and Deed of Trust

89.

What forms do lenders use in conjunction with the IRS use to confirm customer’s income documentation?

a)

4506-T and 8411

b)

4506-T and 1008

c)

4506-T and 1004D

d)

4506-T and 8821

90.

For a FHA purchase, if borrower has been residing in the property, when can they sell the property?

a)

90 days from the purchase acquisition

b)

90 days from the consummation

c)

91 days from purchase acquisition

d)

91 days from the consummation

91.

What is the name of the form used for condo appraisals?

a)

Fannie Mae form 1004

b)

Fannie Mae form 1008

c)

Fannie Mae form 1073

d)

HUD form 92900a

92.

For investment property income, what is the vacancy factor lenders use?

a)

10%

b)

20%

c)

75%

d)

25%

93.

In the liabilities section of the 1003, what is not listed?

a)

Name of creditor

b)

Number of payments remaining

c)

Existing balance of account

d)

Date Account was opened

94.

If a loan is determined to be a Higher Priced Mortgage Loan, after how many years can a customer terminate the escrow from their mortgage payment?

a)

5 Years

b)

2 Years

c)

4 Years

d)

10 Years

95.

Which of the following may be a red flag per FACTA?

a)

Borrower’s maiden name is on the credit report

b)

Borrowers age is inconsistent with length of accounts open

c)

Borrower has more than 4 credit inquiries within the last 6 months

d)

Borrower’s credit report only indicates two credit scores

96.

A borrower submits a $6,500 earnest money deposit to purchase a property for $460,000. The underwriter determines that the borrower needs $23,000 of their own funds to satisfy the minimum borrower investment requirements. What will be the down payment amount the borrower will need?

a)

Zero Down

b)

$10,000

c)

$16,500

d)

$29,500

97.

A borrower’s gross monthly income is $10,000 and they are selecting a loan program that only allows up to a maximum 40% Debt-to-Income ratio. If the borrower already has $1000 in other monthly debt obligations, how much PITI (housing payment) can they afford?

a)

$1,000

b)

$2,000

c)

$4,000

d)

$3,000

98.

APR (Annual Percentage Rate Yearly)

a)

Fannie Mae's automated underwriting system that helps lenders complete credit risk assessments to establish a home loan's eligibility for sale and delivery to Fannie Mae with easy-to-use powerful tools.

b)

A deposit made to a seller that represents a buyer's good faith to buy a home. The money gives the buyer extra time to get financing and conduct the title search, property appraisal, and inspections before closing. In many ways, earnest money can be considered a deposit on a home, an escrow deposit, or good faith money.

c)

Interest generated by a sum that is charge to borrows or paid investors. It is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or income earned on an investment. It provides consumers with a bottom-line number they can compare among lenders, credit cads, or investment products.

d)

Programs the help prospective home buyers who are ready to purchase but don't have the funds for a full down payment. Assistance can come in the form of grants, low-interest loans, or zero-interest loans. Some of these may be forgivable.

99.

ARM (Adjustable Rate Mortgage)

a)

Provides stable, quality affordable housing opportunities for low-and moderate-income families throughout the local community in the state of Michigan. Offers down payment assistance.

b)

Freddie Mac's automated underwriting system. Helps lenders complete credit risk assessments to establish a home loan's eligibility for sale and delivery to Freddie Mac with easy-to-use power tools.

c)

A loan in which the interest rate changes periodically. It may start with a lower monthly payment that is fixed but will adjust up or down based on the market.

d)

A five-page form that provides final details about the mortgage loan that has been selected. It includes the loan terms, your projected monthly payments, and how much the borrower will pay in fees and other costs to get your mortgage (the "closing costs"). Lenders must give days to review the CD before consummation.

100.

AUS (Automated Underwriting System)

a)

Programs the help prospective home buyers who are ready to purchase but don't have the funds for a full down payment. Assistance can come in the form of grants, low-interest loans, or zero-interest loans. Some of these may be forgivable.

b)

A computer generated loan underwriting decision, using completed loan application information. Fannie Mae uses Desktop Underwriter (DU) and Freddie Mac used Loan Product Advisor (LPA).

c)

Loan from U.S. Dept of HUD. Allows for lower down payment minimums and lower credit scores than traditional lenders. Must have mortgage Insurance. Mortgage insurance protects lenders against losses from mortgage defaults.

d)

Used by creditors to review a borrower's employment history for verification of job stability and income history.

101.

CD (Closing Disclosure)

a)

Provides important details about the loan requested. The lender must provide a Loan Estimate within three business days of receiving an application. The form provides you with the estimated interest rate, monthly payment, and total closing costs for the loan.

b)

Mortgagee clause by lenders who may choose to sell the loan to another entity or servicer and extend the insurance policy to include insurance coverage for other parties with whom the mortgagee tends to do business.

c)

A five-page form that provides final details about the mortgage loan that has been selected. It includes the loan terms, your projected monthly payments, and how much the borrower will pay in fees and other costs to get your mortgage (the "closing costs"). Lenders must give days to review the CD before consummation.

d)

Known as Ginnie Mae. A Federal agency that guarantees residential mortgages insured or guaranteed by FHA, VA, or USDA.

102.

CLTV (Combined Loan to Value )

a)

A single-close loan hat starts as a construction loan where money is drawn as needed to pay building costs, then converts to a permanent mortgage upon the completion of the home.

b)

A home loan that has a fixed interest rate for the entire term of the loan. The mortgage carries a constant interest rate from the beginning to end.

c)

Known as Fannie Mae. A Government Sponsored Enterprise the purchases, guarantees, and securitizes home loans.

d)

A ratio calculated to determine the total percentage of a homeowner's property that is taken up by all liens. Mortgage balances to the value of the property.

103.

COE (Certificate of Eligibility)

a)

Certificate issued by the department of Veterans Affairs to establish status and amount of a veteran's eligibility to qualify for a loan guaranty.

b)

The most commonly used credit score in the United States. Scores range from 300 to 850. Stands for Fair Isaac Corporation.

c)

USDA's automatic underwriting system for submitting and processing Rural Development Single Family Housing Guaranteed Loans. Allows for electronic processing of loan applications and submission to the agency.

d)

A shared database of defaulted federal debtors.

104.

CTP (Construction to Permanent )

a)

Used by creditors to review borrower's mortgage payment history and terms.

b)

Programs the help prospective home buyers who are ready to purchase but don't have the funds for a full down payment. Assistance can come in the form of grants, low-interest loans, or zero-interest loans. Some of these may be forgivable.

c)

A single-close loan hat starts as a construction loan where money is drawn as needed to pay building costs, then converts to a permanent mortgage upon the completion of the home.

d)

An individual who has not owned a home in the last 3 years

105.

DTI (Debt to Income)

a)

Mortgagee clause by lenders who may choose to sell the loan to another entity or servicer and extend the insurance policy to include insurance coverage for other parties with whom the mortgagee tends to do business.

b)

A structure maintained and used as a single dwelling unit.

c)

Equal to a borrowers' total fixed, recurring monthly debts plus new housing expense, divided by total monthly gross household income.

d)

Known as FREDDIE MAC. A Government Sponsored Enterprise the purchases, guarantees, and securitizes home loans.

106.

DU (Desktop Underwriter)

a)

Provides stable, quality affordable housing opportunities for low-and moderate-income families throughout the local community in the state of Michigan. Offers down payment assistance.

b)

All of the conditions necessary to make the loan have been satisfied and the lender gives the final approval to schedule the closing.

c)

Fannie Mae's automated underwriting system that helps lenders complete credit risk assessments to establish a home loan's eligibility for sale and delivery to Fannie Mae with easy-to-use powerful tools.

d)

A ratio calculated to determine the total percentage of a homeowner's property that is taken up by all liens. Mortgage balances to the value of the property.

107.

EMD (Earnest Money Deposit)

a)

A deposit made to a seller that represents a buyer's good faith to buy a home. The money gives the buyer extra time to get financing and conduct the title search, property appraisal, and inspections before closing. In many ways, earnest money can be considered a deposit on a home, an escrow deposit, or good faith money.

b)

Protects lenders if borrower stops making payments. Borrower pays PMI until 20% of loan value is paid.

c)

In regard to a property with no legal address. Can be used for pre-approval while a borrower shops for a home.

d)

A structure maintained and used as a single dwelling unit.

108.

FHA (Federal Housing Administration)

a)

Programs the help prospective home buyers who are ready to purchase but don't have the funds for a full down payment. Assistance can come in the form of grants, low-interest loans, or zero-interest loans. Some of these may be forgivable.

b)

A governing body that creates and enforces rules for the properties within their jurisdiction.

c)

Provides stable, quality affordable housing opportunities for low-and moderate-income families throughout the local community in the state of Michigan. Offers down payment assistance.

d)

Loan from U.S. Dept of HUD. Allows for lower down payment minimums and lower credit scores than traditional lenders. Must have mortgage Insurance. Mortgage insurance protects lenders against losses from mortgage defaults.

109.

FHLMC (Federal Home Loan Mortgage Corporation)

a)

Known as Fannie Mae. A Government Sponsored Enterprise the purchases, guarantees, and securitizes home loans.

b)

A five-page form that provides final details about the mortgage loan that has been selected. It includes the loan terms, your projected monthly payments, and how much the borrower will pay in fees and other costs to get your mortgage (the "closing costs"). Lenders must give days to review the CD before consummation.

c)

Ratio that compares the principal of a loan to the value of a home. The higher the LTV, the higher the risk for a lender.

d)

Known as FREDDIE MAC. A Government Sponsored Enterprise the purchases, guarantees, and securitizes home loans.

110.

FICO

a)

Used by creditors to review borrower's mortgage payment history and terms.

b)

The most commonly used credit score in the United States. Scores range from 300 to 850. Stands for Fair Isaac Corporation.

c)

Protects a homeowner against the cost of damages to property caused by fire, windstorms, and other common hazards.

d)

All of the conditions necessary to make the loan have been satisfied and the lender gives the final approval to schedule the closing.

111.

FNMA (Federal National Mortgage Association)

a)

Provides stable, quality affordable housing opportunities for low-and moderate-income families throughout the local community in the state of Michigan. Offers down payment assistance.

b)

Known as Fannie Mae. A Government Sponsored Enterprise the purchases, guarantees, and securitizes home loans.

c)

A mortgage loan for people who have served or are currently serving in the armed forces. Surviving spouses can also qualify for this type of loan.

d)

A home loan that has a fixed interest rate for the entire term of the loan. The mortgage carries a constant interest rate from the beginning to end.

112.

FRM (Fixed Rate Mortgage )

a)

Rules outlining interactions between lenders and appraisers. Lenders must arrange appraisals through third-party management companies.

b)

Freddie Mac's automated underwriting system. Helps lenders complete credit risk assessments to establish a home loan's eligibility for sale and delivery to Freddie Mac with easy-to-use power tools.

c)

Length of time you'll be making payments on a loan.

d)

A home loan that has a fixed interest rate for the entire term of the loan. The mortgage carries a constant interest rate from the beginning to end.

113.

GFE (Good Faith Estimate)

a)

The secondary market software platform used to price, lock, hedge, and trade loans nationwide.

b)

A shared database of defaulted federal debtors.

c)

An estimate of all closing costs and fees required for the proposed mortgage loan. Only applicable to people seeking reverse mortgages, with loan estimate forms being introduced for other types of home loans

d)

Used by creditors to review borrower's mortgage payment history and terms.

114.

GNMA (Government National Mortgage Association)

a)

Known as Ginnie Mae. A Federal agency that guarantees residential mortgages insured or guaranteed by FHA, VA, or USDA.

b)

USDA's automatic underwriting system for submitting and processing Rural Development Single Family Housing Guaranteed Loans. Allows for electronic processing of loan applications and submission to the agency.

c)

A governing body that creates and enforces rules for the properties within their jurisdiction.

d)

Fannie Mae's automated underwriting system that helps lenders complete credit risk assessments to establish a home loan's eligibility for sale and delivery to Fannie Mae with easy-to-use powerful tools.

115.

GUS (Guaranteed Underwriting System)

a)

Known as FREDDIE MAC. A Government Sponsored Enterprise the purchases, guarantees, and securitizes home loans.

b)

USDA's automatic underwriting system for submitting and processing Rural Development Single Family Housing Guaranteed Loans. Allows for electronic processing of loan applications and submission to the agency.

c)

The most commonly used credit score in the United States. Scores range from 300 to 850. Stands for Fair Isaac Corporation.

d)

Independent entity through which mortgage lenders order residential real estate valuation services (appraisals) for properties on which they are considering.

116.

HELOC (Home Equity Line of Credit Loan)

a)

A home loan that has a fixed interest rate for the entire term of the loan. The mortgage carries a constant interest rate from the beginning to end.

b)

These are the basic elements of a monthly mortgage payment.

c)

A shared database of defaulted federal debtors.

d)

Loan whose amount is based on the difference between the home's current market value and the homeowner's mortgage balance due. Variable Rates.

117.

HUD (Department of Housing and Urban Development)

a)

Length of time you'll be making payments on a loan.

b)

Social Security Number

c)

Certificate issued by the department of Veterans Affairs to establish status and amount of a veteran's eligibility to qualify for a loan guaranty.

d)

A federal agency responsible for addressing housing needs in America, and enforcing fair housing laws.

118.

LE (Loan Estimate)

a)

A shared database of defaulted federal debtors.

b)

Social Security Number

c)

Provides important details about the loan requested. The lender must provide a Loan Estimate within three business days of receiving an application. The form provides you with the estimated interest rate, monthly payment, and total closing costs for the loan.

d)

USDA's automatic underwriting system for submitting and processing Rural Development Single Family Housing Guaranteed Loans. Allows for electronic processing of loan applications and submission to the agency.

119.

LTV (Loan to Value)

a)

A computer generated loan underwriting decision, using completed loan application information. Fannie Mae uses Desktop Underwriter (DU) and Freddie Mac used Loan Product Advisor (LPA).

b)

A ratio calculated to determine the total percentage of a homeowner's property that is taken up by all liens. Mortgage balances to the value of the property.

c)

Repayment program that adjusts the amount you owe each month based on your income and family size.

d)

Ratio that compares the principal of a loan to the value of a home. The higher the LTV, the higher the risk for a lender.

120.

OB (Optimal Blue)

a)

Known as FREDDIE MAC. A Government Sponsored Enterprise the purchases, guarantees, and securitizes home loans.

b)

Freddie Mac's automated underwriting system. Helps lenders complete credit risk assessments to establish a home loan's eligibility for sale and delivery to Freddie Mac with easy-to-use power tools.

c)

USDA's automatic underwriting system for submitting and processing Rural Development Single Family Housing Guaranteed Loans. Allows for electronic processing of loan applications and submission to the agency.

d)

The secondary market software platform used to price, lock, hedge, and trade loans nationwide.

121.

PITIA (Principal, Interest, Taxes, Insurance, & Association Dues)

a)

Ratio that compares the principal of a loan to the value of a home. The higher the LTV, the higher the risk for a lender.

b)

Provides stable, quality affordable housing opportunities for low-and moderate-income families throughout the local community in the state of Michigan. Offers down payment assistance.

c)

These are the basic elements of a monthly mortgage payment.

d)

A brief document that explains anything on your financial or employment documents that may make an underwriter pause i.e.. previous bankruptcy.

122.

PMI (Private Mortgage Insurance)

a)

A five-page form that provides final details about the mortgage loan that has been selected. It includes the loan terms, your projected monthly payments, and how much the borrower will pay in fees and other costs to get your mortgage (the "closing costs"). Lenders must give days to review the CD before consummation.

b)

Length of time you'll be making payments on a loan.

c)

The secondary market software platform used to price, lock, hedge, and trade loans nationwide.

d)

Protects lenders if borrower stops making payments. Borrower pays PMI until 20% of loan value is paid.

123.

URLA/1003

a)

Loan whose amount is based on the difference between the home's current market value and the homeowner's mortgage balance due. Variable Rates.

b)

Freddie Mac's automated underwriting system. Helps lenders complete credit risk assessments to establish a home loan's eligibility for sale and delivery to Freddie Mac with easy-to-use power tools.

c)

Known as Fannie Mae. A Government Sponsored Enterprise the purchases, guarantees, and securitizes home loans.

d)

Loan application. Used by creditors to determine your creditworthiness for a home loan.

124.

USDA (US Department of Agriculture)

a)

Interest generated by a sum that is charge to borrows or paid investors. It is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or income earned on an investment. It provides consumers with a bottom-line number they can compare among lenders, credit cads, or investment products.

b)

A Home Loan offered to rural property owners by the United States Department of Agriculture.

c)

Provides stable, quality affordable housing opportunities for low-and moderate-income families throughout the local community in the state of Michigan. Offers down payment assistance.

d)

Fannie Mae's automated underwriting system that helps lenders complete credit risk assessments to establish a home loan's eligibility for sale and delivery to Fannie Mae with easy-to-use powerful tools.

125.

VA (Department of Veterans Affairs)

a)

USDA's automatic underwriting system for submitting and processing Rural Development Single Family Housing Guaranteed Loans. Allows for electronic processing of loan applications and submission to the agency.

b)

Programs the help prospective home buyers who are ready to purchase but don't have the funds for a full down payment. Assistance can come in the form of grants, low-interest loans, or zero-interest loans. Some of these may be forgivable.

c)

A contract between title insurance underwriter and lender in which underwriter agrees to indemnify the lender for actual losses caused by certain kinds of misconduct by the closing agent.

d)

A mortgage loan for people who have served or are currently serving in the armed forces. Surviving spouses can also qualify for this type of loan.

126.

VOE (Verification of Employment)

a)

Interest generated by a sum that is charge to borrows or paid investors. It is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or income earned on an investment. It provides consumers with a bottom-line number they can compare among lenders, credit cads, or investment products.

b)

A governing body that creates and enforces rules for the properties within their jurisdiction.

c)

Used by creditors to review a borrower's employment history for verification of job stability and income history.

d)

An individual who has not owned a home in the last 3 years

127.

VOM (Verification of Mortgage)

a)

Used by creditors to review borrower's mortgage payment history and terms.

b)

A single-close loan hat starts as a construction loan where money is drawn as needed to pay building costs, then converts to a permanent mortgage upon the completion of the home.

c)

A home loan that has a fixed interest rate for the entire term of the loan. The mortgage carries a constant interest rate from the beginning to end.

d)

Provides important details about the loan requested. The lender must provide a Loan Estimate within three business days of receiving an application. The form provides you with the estimated interest rate, monthly payment, and total closing costs for the loan.

128.

A Jumbo loan involves

a)

loans that are 100% of the value of home

b)

loans that are longer than 30 years

c)

loans that have extremely high interest rates

d)

loans on luxury homes

129.

You do not have to pay PMI when you have at least this much equity in your home

a)

10

b)

15

c)

20

d)

30

130.

This is the most common type of loan and usually has a fixed rate

a)

conventional

b)

FHA loan

c)

VA loan

d)

investment

131.

This type of mortgage usually requires 0% down and has low interest rates

a)

conventional

b)

investment

c)

VA loan

d)

FHA loan

132.

Mark the following items that everyone is required to pay on a mortgage loan

a)

HOA

b)

PMI

c)

Taxes

d)

insurance

e)

principal payment

133.

Adding escrow to your mortgage payment will include what additional payments

a)

interest

b)

taxes

c)

insurance

d)

utilities

134.

If you bought a home for $100,000 and the home is worth $150,000 and paid $20,000 down payment at closing- how much equity do you have in the home

a)

$150,000

b)

$20,000

c)

$70,000

d)

$80,000

135.

The Truth in Lending Act guarantees that what information is provided in writing

a)

costs

b)

value of home

c)

estimate of repairs

d)

square footage

136.

Which scenario would be a good idea to refinance a loan

a)

interest rates are currently high

b)

interest rates are currently low

c)

you need extra money for repairs to home

d)

you want to lower the total amount of payment or interest paid

e)

You like the new bank that just opened in town

137.

This is the process you go through when determining if your loan application is acceptable

a)

prewriting

b)

screening

c)

underwriting

d)

escrow

138.

This is what you pay when you make an offer on a home

a)

down payment

b)

PMI

c)

escrow

d)

earnest money

NMLS REPASO

Total questions: 138

Worksheet time: 8hrs 28mins

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