CMPS Regulatory Compliance & Lending Guidelines 4

Question 1

Under FHA guidelines, what is the maximum seller concession allowed on a purchase with less than 10% down payment?

Accepted Answer

6% of the purchase price

Answer

FHA allows seller concessions up to 6% of the sales price regardless of the down payment amount, unlike conventional loans which vary by LTV.

Question 2

Which of the following loan types is EXEMPT from the TRID (TILA-RESPA Integrated Disclosure) requirements?

Accepted Answer

Home Equity Line of Credit (HELOC)

Answer

HELOCs are exempt from TRID requirements and instead use disclosures governed separately by TILA's Regulation Z rules for open-end credit.

Question 3

What does the Appraiser Independence Requirements (AIR) policy, established after the housing crisis, primarily prohibit?

Accepted Answer

Loan production staff from selecting, retaining, or influencing appraisers

Answer

AIR prohibits anyone with an interest in the loan transaction, including loan production staff, from improperly influencing appraisers or the appraisal process.

Question 4

A VA loan requires the veteran to pay the VA funding fee. Which borrower group is EXEMPT from this fee?

Accepted Answer

Veterans with service-connected disabilities receiving compensation

Answer

Veterans receiving VA compensation for service-connected disabilities are exempt from paying the VA funding fee on VA-guaranteed home loans.

Question 5

Under the Safe Mortgage Licensing Act (SAFE Act), a new MLO applicant must complete how many hours of pre-licensing education?

Accepted Answer

20 hours

Answer

The SAFE Act requires MLO license applicants to complete at least 20 hours of pre-licensing education covering federal and state mortgage law, ethics, and non-traditional products.

(CMPS) Certified Mortgage Planning Specialist Practice Test

(CMPS) Certified Mortgage Planning Specialist Practice Test

CMPS Regulatory Compliance & Lending Guidelines 4