FREE Loan Officer Questions and Answers
What kind of property is covered by a right rescission?
Explanation:
Only when a principal residence is being refinanced is there a right of revocation.
All of the following are included in the original escrow statement, EXCEPT:
Explanation:
Owners association dues are not paid into the escrow account or included in the mortgage payment each
month.
Which loans fall outside the Real Estate Settlement Procedures Act's (RESPA) exemptions?
Explanation:
Any loan that is backed by a first or second lien on a residential property is typically subject to RESPA.
When is a notice of adverse action required?
Explanation:
An adverse action on a mortgage application is a bad action that the customer is informed about in relation
to the denial of the credit application.
What aspect can be taken into account while assessing a loan application?
Explanation:
Immigration status may be taken into account when examining the application because it may have an
impact on a person's capacity to repay a loan.
Which form of income is not taken into account when reviewing a loan?
Explanation:
Benefits from the military's educational program will end once the borrower has completed their studies,
hence they cannot be regarded as a source of income.
A Good Faith Estimate cannot be provided until a customer's complete application has been received. Which of the following answers DOES NOT constitute information sufficient to be considered a received application?
Explanation:
A Good Faith Estimate (loan estimate) must be delivered to the customer no later than three business days
following the acceptance of an application; however, the consumer's assets are not a necessary component
of the Good Faith Estimate.