Loan Processor Question and Answers

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According to RESPA, who needs to obtain copies of the fee disclosure paperwork?

Correct! Wrong!

Explanation:
Borrowers must be given disclosures at several points during the transaction process, according to RESPA. In some disclosures, the costs of the settlement are specified, lender servicing and escrow account procedures are described, and business ties between settlement service providers are discussed.

True or false: In some cases, the lender does not have to send the borrower their Good Faith Estimate

Correct! Wrong!

Explanation:
An estimate provided in good faith does not bind you to a certain lender. It does provide you with useful information so you may "search around" for the best loan with the lowest settlement expenses.

How long do you have after receiving a complete application before mailing the initial loan disclosure documents?

Correct! Wrong!

Explanation:
The day after the consumer's application is received on a business day is when the Disclosure time period officially starts. Initial disclosure for the loan estimate (delivery): The initial Loan Estimate must be delivered by the lender no later than three business days (using the common definition of a working day) following the receipt of the application.

True or False: To ensure prompt funding, you or any authorized lender employee may sign documents on behalf of the borrower if a signature is absent.

Correct! Wrong!

Correct answer:
False

When submitting an application in person, what document MUST be signed in order to get a borrower's credit report?

Correct! Wrong!

Explanation:
The borrower's consent is required for the lender to obtain a credit report. Normally, written consent is required for this. The borrower can authorize a lender to pull their credit by signing a typical borrower authorization form.

True/False: A borrower may receive more than one Good Faith Estimate in specific circumstances.

Correct! Wrong!

Correct answer:
True

True or False: The values in the Truth in Lending and Good Faith Estimate are exact estimates of the cost of the borrower's loan.

Correct! Wrong!

Correct answer:
False

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