CMA Loan Origination Process 2

Question 1

Under RESPA, the Loan Estimate must be delivered to the borrower within how many business days of receiving a completed loan application?

Accepted Answer

3 business days

Answer

1 business day

Answer

5 business days

Answer

7 business days

Question 2

Which of the following is NOT one of the six pieces of information that trigger a completed loan application under TRID?

Accepted Answer

Borrower's income

Answer

Property address

Answer

Estimated property value

Answer

Social Security number

Question 3

A loan officer receives a complete application on Monday. What is the latest day the Loan Estimate may be delivered to comply with the 3-business-day rule (assuming no federal holidays)?

Accepted Answer

Thursday

Answer

Tuesday

Answer

Wednesday

Answer

Friday

Question 4

During loan origination, what does the term 'pipeline management' primarily refer to?

Accepted Answer

Monitoring and managing all active loan applications from submission to closing

Answer

Tracking plumbing permits for property inspections

Answer

Selecting which wholesale lenders to work with

Answer

Ordering title insurance for multiple files simultaneously

Question 5

Which document authorizes a lender to verify a borrower's tax transcripts directly with the IRS?

Accepted Answer

Form 4506-C

Answer

Form 1003

Answer

Form 1005

Answer

Form SSA-1099

Question 6

A borrower's loan application is taken verbally over the phone. Under Regulation B, when must the loan officer provide the applicant with a copy of the right-to-receive-appraisal notice?

Accepted Answer

Within 3 business days of application

Answer

At closing

Answer

Only if the loan is denied

Answer

Before the appraisal is ordered

Question 7

What is the primary purpose of the 1003 Uniform Residential Loan Application?

Accepted Answer

To collect standardized financial and personal information needed to evaluate a mortgage application

Answer

To authorize credit bureau pulls only

Answer

To disclose the annual percentage rate to the borrower

Answer

To document property inspection results