Mortgage Uniform State Content (USC) 2

Question 1

Under USC provisions, which of the following actions constitutes 'steering' a borrower?

Accepted Answer

Directing a borrower to a higher-cost loan when they qualify for a better product to increase compensation

Answer

Steering occurs when an MLO directs a borrower toward a loan product that is not in their best interest, typically to earn higher compensation.

Question 2

What is the maximum civil money penalty per violation under the SAFE Act for unlicensed mortgage origination activity?

Accepted Answer

$25,000

Answer

The SAFE Act authorizes civil money penalties of up to $25,000 per violation for unlicensed mortgage loan origination.

Question 3

A borrower claims an MLO promised to lock in a specific interest rate verbally but did not document it. Under USC standards, which principle applies?

Accepted Answer

Rate lock commitments must be documented in writing to be binding

Answer

USC standards require that rate lock commitments and material representations be documented in writing to protect both parties.

Question 4

Which federal law, incorporated by reference into USC education requirements, prohibits discrimination based on race, color, religion, national origin, sex, familial status, or disability in residential real estate transactions?

Accepted Answer

Fair Housing Act (FHA)

Answer

The Fair Housing Act prohibits discrimination in residential real estate transactions based on those seven protected classes.

Question 5

Under USC, what must an MLO do if they discover that information on a loan application they previously submitted was inaccurate?

Accepted Answer

Correct the information immediately and notify the appropriate parties

Answer

MLOs have an ongoing duty to ensure accuracy and must correct any known inaccuracies in loan applications regardless of loan stage.

Mortgage Practice Test

Mortgage Practice Test

Mortgage Uniform State Content (USC) 2