Mortgage Uniform State Content 2

Question 1

Under the SAFE Act, which activity requires an individual to be licensed as a mortgage loan originator?

Accepted Answer

Taking a residential mortgage loan application and offering or negotiating loan terms

Answer

Referring a borrower to a lender without discussing loan terms

Answer

Processing loan documents under the supervision of a licensed MLO

Answer

Performing title searches for residential properties

Question 2

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

Accepted Answer

Truth in Lending Act (Regulation Z)

Answer

Equal Credit Opportunity Act

Answer

Real Estate Settlement Procedures Act

Answer

Home Mortgage Disclosure Act

Question 3

A mortgage loan originator who knowingly makes a false statement on a mortgage application could face which consequence under federal law?

Accepted Answer

Criminal penalties including fines and up to 30 years imprisonment under 18 U.S.C. § 1014

Answer

Only a civil fine of up to $500

Answer

License suspension for 30 days only

Answer

A warning letter from the CFPB with no financial penalty

Question 4

Which of the following best describes 'net tangible benefit' in the context of mortgage refinancing?

Accepted Answer

A demonstrable advantage to the borrower such as lower monthly payments or a shorter loan term

Answer

The lender's profit margin on a refinance transaction

Answer

The difference between the appraised value and the loan amount

Answer

The borrower's equity position after closing

Question 5

Under ECOA (Equal Credit Opportunity Act), within how many days must a lender notify an applicant of adverse action on a completed credit application?

Accepted Answer

30 calendar days

Answer

3 business days

Answer

10 business days

Answer

60 calendar days

Question 6

Which characteristic is NOT a protected class under the federal Fair Housing Act?

Accepted Answer

Income level

Answer

Familial status

Answer

National origin

Answer

Handicap (disability)

Question 7

Under RESPA, a mortgage lender is prohibited from paying a fee or 'kickback' to a real estate agent for referring a borrower. This prohibition is found in which section of RESPA?

Accepted Answer

Section 8

Answer

Section 6

Answer

Section 10

Answer

Section 12