Mortgage Loan Origination Activities Flashcards

For a Qualified Mortgage with a loan amount of $100,000 or more, points and fees generally may not exceed:

Answer: 3% of the total loan amount

The general QM points-and-fees cap is 3% of the total loan amount for larger loans.

A first-lien higher-priced mortgage loan (HPML) requires an escrow account for at least:

Answer: 1 year

Escrows on HPMLs must be maintained for a minimum of 1 year.

A first-lien loan is a HOEPA high-cost mortgage if its APR exceeds the APOR by more than:

Answer: 6.5 percentage points

The first-lien APR trigger is APOR plus 6.5 points (8.5 for certain small first-liens).

Which of the following is NOT one of the eight Ability-to-Repay underwriting factors?

Answer: The consumer's marital status

Marital status is a prohibited consideration under ECOA, not an ATR factor.

A property in a Special Flood Hazard Area secures a federally related loan. What is the minimum flood insurance amount required?

Answer: The lesser of the outstanding principal balance, the maximum NFIP limit available, or the insurable value

Coverage must equal the lesser of loan balance, maximum NFIP limit, or insurable value of improvements.

Under HMDA, when an applicant applying in person declines to provide ethnicity, race, and sex, the loan originator must:

Answer: Note the information on the basis of visual observation or surname

For in-person applications the originator must record demographics by visual observation or surname if not furnished.

Which action by a loan originator is considered steering?

Answer: Directing a consumer to a loan with higher compensation to the originator when a better-suited loan is available

Steering to a loan to earn more compensation, against the consumer's interest, is prohibited.