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25 Cards in this Set
- Front
- Back
What is a nontraditional loan according to the SAFEACT? |
Any loan that is not a "30 year fixed rate" mortgage |
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Ariana has failed to pass the written test of NML twice. How long must she wait to retake the test? |
30 days |
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Who is the largest buyer of loans on the secondary market? |
Fannie Mae |
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Ollie informers her that he cosigned a car loan but the credit report does not reflect his statement. |
Fran commits fraud by approving a purposefully false application |
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If an MLO has a complaint about a consumer protection issue regarding taxes, who should be contacted? |
IRS |
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The DODD-FRANK Act created the CFPB. CFPB is an acronym for what? |
Consumer Financial Protection Bureau |
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David is a loan processor under an MLO. Which of the following acts would be a violation of the safe act? |
David can not provide loan origination |
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The SAFE ACT made the states use unique NLMS #'s instead of using what? |
Social Security #'s |
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Borrow Stew wants an FHA loan for $235K but the house is appraised for $257K. Which value will the bank recognize for the loan? |
The bank will recognize the lower of the two values. |
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A salaried employee makes $1,350 biweekly. How much does the employee make per a month? |
The employee makes $2,925 ($1,350x26 weeks) |
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Mortgage broker receives discounted office space from a Title company for recommending clients. What does this violate? |
Real Estate Settlement Procedures Act (RESPA) section 8: kickbacks |
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True or False: An FHA insured loan is only for low income first time home buyers |
False |
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True or False: It is not bait and switch advertising if a customer accepts new terms. |
False |
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Which will trigger the Truth and Lending Act within an advertisement? |
An advertisement's statement which triggers rates or numbers. |
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What is not an element of an arm? |
Positive Amortization Cap |
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What is the interest rate on a loan that is indexed at 5.5% with a margin of 2.25%? |
7.75% |
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What % does the VA guarantee? |
25% |
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Mary wants an FHA (31/43) primary residence loan. Her monthly mortgage expense will be $800.65, car $192.65, and credit card $40.00. With a total of $1033.30 what is her monthly income using the total debt to income ratio? |
$2403.02 (1033.30/.43) |
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True or False: Financial Institutions have to report threats made against consumer information? |
False |
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Which act requires mortgage lenders to inform consumers what happened when they are declined? |
The Fair Credit Reporting Act (FCRA) |
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Under the Gram Breach Riley Act, what is the definition of a consumer? |
A consumer is a person that purchased a product or service from a financial institution. |
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HOEPA Prohibited Regulations except... |
Liability to repay the loan |
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Is a 4.5% line of Credit considered a High Priced Loan? |
No |
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Consumer Reporting Agencies have a responsibility to do what? |
Provide consumer credit information to those with a legitimate business needs. |
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Pete is an MLO and has stumbled upon a report claiming Identity Fraud. What act should he look up in order to perform the law properly? |
Fair and Accurate Credit Transactions Act. |