Mortgage Loan Originator Trivia 2

Question 1

What federal law requires lenders to provide borrowers with a Loan Estimate within three business days of receiving a loan application?

Accepted Answer

TILA-RESPA Integrated Disclosure (TRID)

Answer

TRID, which took effect in October 2015, requires lenders to deliver the Loan Estimate within three business days of application receipt.

Question 2

Which government-sponsored enterprise (GSE) was originally known as the Federal National Mortgage Association?

Accepted Answer

Fannie Mae

Answer

Fannie Mae is the nickname for the Federal National Mortgage Association, established in 1938 to expand the secondary mortgage market.

Question 3

In mortgage lending, what does the acronym DTI stand for?

Accepted Answer

Debt-to-Income

Answer

DTI (Debt-to-Income) ratio compares a borrower's monthly debt payments to their gross monthly income.

Question 4

What is the maximum seller concession allowed on a conventional loan with a down payment between 10% and 24.99%?

Accepted Answer

6%

Answer

For conventional loans with 10%–24.99% down, Fannie Mae and Freddie Mac allow seller concessions up to 6% of the purchase price.

Question 5

Which act prohibits discrimination in residential real estate transactions based on race, color, religion, national origin, sex, familial status, or disability?

Accepted Answer

Fair Housing Act

Answer

The Fair Housing Act (Title VIII of the Civil Rights Act of 1968) protects buyers and renters from discrimination in housing-related transactions.

Mortgage Loan Originator Practice Test

Mortgage Loan Originator Practice Test

Mortgage Loan Originator Trivia 2