Free Loan Officer Q&A: Finance, Insurance, Real Estate

All of the following, WITH THE EXCEPTION OF?, are examples of finance charges.

title insurance

a loan processing fee

interest

points

Correct! Wrong!

Explanation:
The definition of a fee in 12 CFR 1026-TRUTH-IN-LENDING ACT (TILA-REG Z) is ""the cost of consumer credit
as a dollar amount.

All of the following are protected by the Truth in Lending Act, EXCEPT?

it provides minimum standards for most residential loans secured by a dwelling

it gives guidance to a lender on whether they should grant a loan to a borrower

it requires all lenders to have uniform set of disclosures

Correct! Wrong!

Explanation:
The Truth in Lending Act does not specify whether or how much interest a lender may charge a borrower
when making a loan decision.

What does "change of circumstance" NOT entail?

a disaster

a change in the borrower's monthly income

the need for flood insurance

a change in the loan amount after the Good Faith Estimate has been issued

Correct! Wrong!

Explanation:
Emergencies, catastrophes, conflict, and divine intervention are all examples of changes in circumstance.
A change in circumstance is not necessary if the borrower's income, assets, or name spelling have not changed.

Which information on a mortgage application CANNOT be omitted by the applicant?

sex

ethnicity

Correct! Wrong!

Explanation:
On a mortgage application, a social security number is required in order to request a credit report.

When must a lender deliver a copy of the appraisal to the borrower?

3 days before a loan closes

3 days after the loan is completed

after a consumer has pain for their appraisal

7 days before a loan closes

Correct! Wrong!

Explanation:
A copy of the consumer's assessment must be sent by the lender three days before the loan closes.

Except for, all of the following must be protected by HOEPA?

closed-end home equity loans

purchase money mortgages

reverse mortgages

refinances

Correct! Wrong!

Explanation:
The vast majority of house mortgages must be protected by HOEPA. This covers primary residences, second
homes, and investment homes.

The loan estimate must be delivered or mailed to the borrower as soon as a complete application has been received.

7 business days after receipt of the application

7 calendar days after receipt of the application

3 calendar days after receipt of the application

3 business days after receipt of the application

Correct! Wrong!

Explanation:
A loan estimate must be sent to a borrower through mail or delivered (including electronically) to the
borrower no later than the third business day following the receipt of the borrower's application.

FREE Loan Officer : Finance, Insurance and Real Estate Questions and Answers

All of the following, WITH THE EXCEPTION OF?, are examples of finance charges.

All of the following are protected by the Truth in Lending Act, EXCEPT?

What does "change of circumstance" NOT entail?

Which information on a mortgage application CANNOT be omitted by the applicant?

When must a lender deliver a copy of the appraisal to the borrower?

Except for, all of the following must be protected by HOEPA?

The loan estimate must be delivered or mailed to the borrower as soon as a complete application has been received.

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