Mortgage Uniform State Content

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

The SAFE Act requires licensure for any individual who takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan.

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

TILA (Regulation Z), as amended by the TRID rule, requires the Loan Estimate be delivered within three business days of application.

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

Under 18 U.S.C. § 1014, making false statements on mortgage applications is a federal crime punishable by fines and up to 30 years in prison.

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

Net tangible benefit requires that a refinance provide a real, measurable advantage to the borrower, which is a key anti-predatory lending standard.

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

ECOA requires lenders to notify applicants of adverse action within 30 days of receiving a completed credit application.

Mortgage Practice Test

Mortgage Practice Test

Mortgage Uniform State Content