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

RESPA and TRID require lenders to provide the Loan Estimate within 3 business days of receiving a completed loan application.

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

The six TRID triggers are borrower name, SSN, income, property address, estimated value, and loan amount — income is actually included, but it is the only one that can vary; the trick here is that 'borrower's income' is indeed one of the six pieces.

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

Business days under TRID include all calendar days except Sundays and federal public holidays, so Monday + 3 business days = Thursday.

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

Pipeline management refers to tracking and managing all active loan files through each stage of the origination process to ensure timely closings.

Question 5

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

Accepted Answer

Form 4506-C

Answer

IRS Form 4506-C (Request for Transcript of Tax Return) authorizes the lender to obtain tax transcripts directly from the IRS for income verification.

(CMA) Certified Mortgage Advisor Practice Test

(CMA) Certified Mortgage Advisor Practice Test

CMA Loan Origination Process 2