Mortgage Uniform State Content 5

Question 1

Which federal act established the Consumer Financial Protection Bureau (CFPB)?

Accepted Answer

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010

Answer

The SAFE Mortgage Licensing Act of 2008

Answer

The Gramm-Leach-Bliley Act of 1999

Answer

The Housing and Economic Recovery Act of 2008

Question 2

A mortgage loan originator receives a gift card from a title company after closing several loans with them. Under RESPA, this arrangement is:

Accepted Answer

Prohibited as an unearned fee or kickback under Section 8

Answer

Permissible if the gift card value is under $50

Answer

Permissible if disclosed to the borrower at closing

Answer

Allowed if the title company is an affiliated business

Question 3

Under the SAFE Act's continuing education requirements, a licensed MLO must complete how many hours of continuing education annually?

Accepted Answer

8 hours

Answer

5 hours

Answer

12 hours

Answer

20 hours

Question 4

Which of the following loan features characterizes a 'balloon payment mortgage'?

Accepted Answer

A large lump-sum payment is due at the end of the loan term

Answer

The interest rate adjusts annually based on a market index

Answer

The monthly payment decreases over the life of the loan

Answer

The borrower may skip payments during financial hardship

Question 5

Under the Home Mortgage Disclosure Act (HMDA), what is the primary purpose of collecting and reporting loan data?

Accepted Answer

To help identify discriminatory lending patterns and determine whether lenders are serving their communities' housing needs

Answer

To set maximum allowable interest rates by geographic area

Answer

To calculate the maximum loan limits for conforming mortgages

Answer

To monitor prepayment rates for mortgage-backed securities

Question 6

When a loan applicant is a non-citizen permanent resident, how must a lender treat them under ECOA?

Accepted Answer

Immigration status may not be used as a basis for denying credit if the applicant is creditworthy

Answer

The lender may require a larger down payment due to immigration status

Answer

Non-citizen residents may be denied any government-backed loan programs

Answer

The lender must require a U.S. co-signer for all loan amounts

Question 7

An MLO's pre-licensure education requirement under the SAFE Act includes which mandatory topic?

Accepted Answer

Federal law and regulations, ethics, and nontraditional mortgage products

Answer

Advanced tax preparation strategies for homeowners

Answer

State-specific construction loan guidelines only

Answer

Real estate appraisal methodology