FREE Mortgage Loan Originator Prep Questions and Answers

Question 1

Which of the following groups of persons is not protected by the Equal Credit Opportunity Act but is under the Fair Housing Act

Accepted Answer

Disability

Answer

Sex

Answer

Race

Answer

Religion

Question 2

Which of the following groups of people is not protected by the Fair Housing Act but is by the Equal Credit Opportunity Act:

Accepted Answer

Age

Answer

Color

Answer

Religion

Answer

National origin

Question 3

Which of the following, if based on membership in a protected class, would be regarded as a violation of the Fair Housing Act:

Accepted Answer

All of the above

Answer

Refusing to make a mortgage loan

Answer

Imposing different terms or conditions on a loan

Answer

Refusing to provide information regarding loans

Question 4

Which of the following sums up blockbusting violations the best:

Accepted Answer

Trying to get owners to sell their homes out of fear that the racial or ethnic composition of the neighborhood is changing and values are declining

Answer

A lender refusing to loan in certain areas based on race or color of the occupants

Answer

Directing buyers to non-integrated neighborhoods based on their ethnicity

Answer

None of the above

Question 5

Which of the following sums up the offense known as steering the best:

Accepted Answer

Directing buyers to non-integrated neighborhoods based on their ethnicity

Answer

Trying to get owners to sell their homes out of fear that the racial or ethnic composition of the neighborhood is changing and values are declining

Answer

A lender refusing to loan in certain areas based on race or color of the occupants

Answer

None of the above

Question 6

Which of the following measures addressed redlining and was approved by Congress in 1977:

Accepted Answer

Community Reinvestment Act (CRA)

Answer

Fair Credit Reporting Act (FCRA)

Answer

Equal Credit Opportunity Act (ECOA)

Answer

Homeowner’s Protection Act (HPA)

Question 7

All of the following statements regarding the Community Reinvestment Act (CRA) are true, with the exception of:

Accepted Answer

It requires lending institutions to meet a quota of nontraditional loans in the area where they conduct business

Answer

Its purpose is to reduce discrimination in lending in low-income areas

Answer

It requires a periodic evaluation of an insured depository institution’s lending record

Answer

It encourages financial institutions to help meet the credit needs of the communities in which they are located

Question 8

What is accurate about the 1975 Home Mortgage Disclosure Act?

Accepted Answer

Its purpose is to fight redlining

Answer

Its purpose is to fully disclose terms and conditions of the loan

Answer

Its purpose is to ensure that borrower’s personal financial information is protected

Answer

Its purpose is to make sure borrowers can have PMI removed from a loan when the LTV drops to 80%

Question 9

How are loans classified when reports of all loans granted throughout the year are examined in compliance with the requirements of the Home Mortgage Disclosure Act of 1975:

Accepted Answer

According to the locations of the properties

Answer

According to the race and ethnicity of the borrowers

Answer

According to the size of the loans

Question 10

Which two of the following best describes each type of fraud:

Accepted Answer

Actual and constructive

Answer

Intentional and unintentional

Answer

Voluntary and involuntary

Answer

Malicious and accidental