Mortgage Uniform State Content 4

Question 1

Under Regulation B (ECOA), which of the following is a lender PERMITTED to ask on a mortgage application?

Accepted Answer

The applicant's marital status when applying for a joint loan

Answer

The applicant's religion

Answer

Whether the applicant plans to have children

Answer

The applicant's country of origin

Question 2

A mortgage loan is classified as a 'High-Cost Mortgage' under HOEPA when which threshold is exceeded?

Accepted Answer

The APR exceeds the average prime offer rate by more than 6.5 percentage points for a first-lien loan

Answer

The APR exceeds the prime offer rate by 1.5 percentage points for a first-lien loan

Answer

The loan amount exceeds $726,200

Answer

The loan-to-value ratio exceeds 80%

Question 3

What is the primary purpose of the Nationwide Multistate Licensing System (NMLS)?

Accepted Answer

To provide a single system for licensing, registration, and supervision of mortgage professionals

Answer

To set interest rate caps for mortgage loans in all states

Answer

To maintain the federal registry of all residential mortgage loans

Answer

To process mortgage loan applications on behalf of lenders

Question 4

Under RESPA, which document replaced the HUD-1 Settlement Statement for most residential mortgage closings after October 3, 2015?

Accepted Answer

Closing Disclosure

Answer

Closing Cost Worksheet

Answer

Settlement Summary Form

Answer

Final Truth-in-Lending Statement

Question 5

Which of the following is an example of 'steering' in the mortgage industry?

Accepted Answer

Directing a borrower to a higher-cost loan for which they qualify for a lower-cost product in order to earn higher compensation

Answer

Recommending a loan product that best fits the borrower's financial needs

Answer

Explaining the difference between fixed-rate and adjustable-rate mortgages

Answer

Referring a borrower to a HUD-approved housing counselor

Question 6

An MLO's unique identifier assigned through NMLS must appear on which documents?

Accepted Answer

All residential mortgage loan application forms and solicitations

Answer

Only the MLO's business cards

Answer

Only closing documents filed with the state regulator

Answer

Internal underwriting worksheets only

Question 7

Under the Ability-to-Repay (ATR) rule, which factor is a lender required to consider when making a mortgage loan?

Accepted Answer

The borrower's current or reasonably expected income and current debt obligations

Answer

The borrower's neighborhood property values only

Answer

The borrower's expected future salary increases

Answer

The lender's internal portfolio yield targets