FREE Loan Officer Questions and Answers

Question 1

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?

Accepted Answer

consumer's assets

Answer

address of the property

Answer

the mortgage loan amount sought

Answer

consumer's social security number

Question 2

Which loans fall outside the Real Estate Settlement Procedures Act's (RESPA) exemptions?

Accepted Answer

a loan to finance a commercial warehouse

Answer

a reverse mortgage

Answer

a home equity line of credit

Answer

a mortgage to purchase a single-family home

Question 3

All of the following are included in the original escrow statement, EXCEPT:

Accepted Answer

the amount that is collected for homeowners association dues

Answer

the portion of the monthly payment going into the escrow account

Answer

the amount of reserves or cushion as determined by the loan servicer

Answer

the amount of the mortage payment

Question 4

When is a notice of adverse action required?

Accepted Answer

when a counteroffer is extended, but the offer is rejected

Answer

when there is a change in the terms of the mortgage

Answer

when an application is withdrawn

Answer

when a counteroffer is extended, and the offer is accepted

Question 5

What aspect can be taken into account while assessing a loan application?

Accepted Answer

immigration status

Answer

national origin

Answer

pregnancy

Answer

marital status

Question 6

Which form of income is not taken into account when reviewing a loan?

Accepted Answer

educational military benefits

Answer

alimony and child support

Answer

annuity income

Answer

part-time income

Question 7

What kind of property is covered by a right rescission?

Accepted Answer

a principal residence

Answer

a nonowner-occupied condominium

Answer

a second home

Answer

a nonowner-occupied duplex