1
Which of the following scenarios would MOST
LIKELY indicate income misrepresentation may be occurring and require
additional investigation/verification?
Select the Best Answer
Mark for review
|
The borrower's
paystubs reflect accurate withholding amounts
|
|
The borrower's prior year's earnings and withholding
are all even dollar amounts
|
|
The borrower is
self-employed
|
|
The borrower has a
history of working two jobs
|
2
If an event occurs in the 30-day period after consummation
that causes the Closing Disclosure to become inaccurate with a change to costs
incurred by the consumer, the creditor must re-issue a corrected Closing
Disclosure within:
Select the Best Answer
Mark for review
|
30 days of learning of the change
|
|
10 days of
learning of the change
|
|
15 days of
learning of the change
|
|
45 days of
learning of the change
|
3
What is the
maximum allowable late charge that can be assessed to a borrower on an FHA loan
when the borrower's payment is received
more than 15 days after the due date?
Select the Best Answer
Mark for review
|
5% of the overdue
principal and interest payment
|
|
4% of the overdue principal and interest payment
|
|
Late fees are not
allowed on FHA loans
|
|
2% of the overdue
principal and interest payment
|
4
Which of the following
statements is TRUE regarding the valuation provisions of the HPA when the
borrower requests cancellation of PMI?
Select the Best Answer
Mark for review
|
The borrower must receive a copy of any valuation
ordered by the creditor
|
|
The borrower must
order an appraisal from an appraiser of his or her choosing
|
|
The creditor is
not permitted to require a valuation of the property
|
|
The creditor must
pay for any valuation it wishes to use
|
5
A consumer
is purchasing a home where the seller has been on title for less than 90 days.
The purchase will be financed with a higher-priced mortgage loan that is not a
Qualified Mortgage. A second appraisal will be required if the new sales price
exceeds the seller's acquisition cost by more than:
Select the Best Answer
Mark for review
6
A Qualified Mortgage is:
Select the Best Answer
Mark for review
|
All of the above
|
|
A loan with
characteristics that make it more likely borrowers will be able to make their
payments
|
|
A loan that avoids
negative amortization
|
|
A category of
loans that have certain, more stable features
|
7
What is the proper
course of action if you discover that your borrower has provided you with a
paystub containing misrepresentation?
Select the Best Answer
Mark for review
|
Tell the applicant
you've uncovered the misrepresentation and demand money to not report the
incident
|
|
See if the loan
can close without using the income from that applicant and, if so, discard
the paystub and proceed
|
|
Gather all documentation and bring it to the person
in your company responsible for suspicious activity reporting
|
|
Immediately accuse
your borrower of fraud and call the FBI
|
8
Under the automatic
termination provisions, as long as the borrower is current on their loan the
servicer must cancel PMI when the loan reaches _______ of the original value
based on the amortization schedule.
Select the Best Answer
Mark for review
9
Under the
provisions of the HPA, when must the INITIAL PMI disclosure be provided to the
borrower?
Select the Best Answer
Mark for review
|
Before the first
payment is due on the loan
|
|
Within three
business days of application
|
|
Before the PMI
payment plan is selected by the applicant
|
|
At closing/consummation of the loan
|
10
Which of the
following statements is TRUE regarding a borrower whose tax returns show rental
income on a property listed as a second home?
Select the Best Answer
Mark for review
|
Second homes are
treated identically to investment properties and therefore rental income
should generally be present
|
|
This is always
fraudulent because second homes can never be rented out
|
|
The borrower is
not permitted to own more than two properties if there is any rental income
listed for a second home
|
|
Rental income on a second home is not an indicator of
misrepresentation as long as the borrower occupies the property for some
portion of the year
|
11
If a borrower
sells their home within 9 years of purchase and realizes a gain from the sale
of the home, a portion of the Mortgage Credit Certificate benefit may be
subject to:
Select the Best Answer
Mark for review
|
Luxury tax
|
|
Transfer tax
|
|
Recapture tax
|
|
Property tax
|
12
Which of the following fees may a creditor charge to
a loan applicant prior to delivery of a Good Faith Estimate or a Loan Estimate
(whichever form applies to a given transaction) and receiving the borrower's
intent to proceed?
Select the Best Answer
Mark for review
|
An application fee
|
|
A credit report fee
|
|
An appraisal fee
|
|
No fees may be
charged prior to delivery
|
13
Money given to someone
by a government or a non-profit organization to be used for a specific purpose,
such as purchasing a house is referred to as a:
Select the Best Answer
Mark for review
|
Grant
|
|
Loan
|
|
None of these
|
|
Donation
|
14
The maximum penalty for
mortgage fraud under Federal statute is up to ______________ in fines and
_____________ years in prison.
Select the Best Answer
Mark for review
|
$500,000 / 25
|
|
$150,000 / 10
|
|
$1,000,000 / 30
|
|
$25,000 / 3
|
15
In mortgage fraud, a
"material fact" is one that is:
Select the Best Answer
Mark for review
|
All of these
|
|
Relevant
|
|
Essential
|
|
Important
|
16
Which of the following scenarios regarding asset
statements is a
potential red flag for misrepresentation?
Select the Best Answer
Mark for review
|
An applicant with
a bank balance that seems to be too large for their salary level
|
|
Bank balances end
in even dollar amounts for consecutive months
|
|
All of these
|
|
Dates of bank
statements are out-of-sequence
|
17
Which of the following restricts access to an individual's
credit report and will not allow a potential creditor to access it unless and
until the individual contacts the credit bureau to provide authorization?
Select the Best Answer
Mark for review
|
A deed-in-lieu
|
|
A fraud alert
|
|
A credit freeze
|
|
A 1003
|
18
Once a creditor has obtained all the information it
normally considers in making a credit decision, the application is considered
complete and the creditor has 30 days in which to:
Select the Best Answer
Mark for review
|
Provide an underwriter with the file.
|
|
Originate a loan.
|
|
Run a credit report.
|
|
Notify the applicant of a
credit decision.
|
19
When reviewing an
appraisal, an underwriter would generally expect the subject property's
indicated value to be _________ the sale prices for all of the comparable
sales. If it is not, this is a red flag for potential fraud or
misrepresentation that should be addressed.
Select the Best Answer
Mark for review
|
lower than
|
|
bracketed by
|
|
equal to
|
|
higher than
|
20
If a loan is a Qualified Mortgage, it is assumed that the
lender followed:
Select the Best Answer
Mark for review
|
RESPA
|
|
The Ability-to-Repay rule
|
|
The HMDA
requirements for small creditors
|
|
All of the
requirements in TILA
|
21
Since January 1, 2014, lenders are required to make a
good-faith effort to:
Select the Best Answer
Mark for review
|
Determine that
borrowers have sufficient rental references
|
|
Send all
application documents electronically
|
|
Send the borrower
a Loan Estimate within three days of application
|
|
Determine that borrowers have the ability to repay a
mortgage loan before credit is extended
|
22
Which of the
following borrowers may benefit from non-QM loans?
Select the Best Answer
Mark for review
|
Real estate
investors
|
|
All of these
|
|
Foreign nationals
|
|
Self-employed
borrowers
|
23
If neither the automatic termination nor the
borrower-requested termination provisions of the HPA are met, when is the
latest that PMI would be required to terminate on a loan subject to the Act?
Select the Best Answer
Mark for review
|
At the midpoint of the amortization schedule
|
|
The servicer may
elect to keep PMI coverage in force for the life of the loan.
|
|
When the loan has
been paid down to 67% LTV
|
|
When the loan
enters its 17th year
|
24
With the most recent amendments to the Qualified Mortgage
rule,
the 43% debt-to-income ratio limit was replaced by a:
Select the Best Answer
Mark for review
|
Price-based threshold using the APOR
|
|
Loan amount
restriction
|
|
Requirement that
all applicants go to HUD counseling
|
|
Prohibition on all
ARM loans
|
25
In order to rise to the
level of mortgage fraud, any misstatement
or omission must be ____________ to
the transaction.
Select the Best Answer
Mark for review
|
Material
|
|
Irrelevant
|
|
None of these
|
|
Extraneous
|
26
The two categories of mortgage fraud are called:
Select the Best Answer
Mark for review
|
Manipulative fraud
and coercive fraud
|
|
Fraud for housing and fraud for profit
|
|
Constructive fraud
and ex post facto fraud
|
|
Serial fraud and
opportunity fraud
|
27
Which of the following loans on a one-unit primary
residence
would NOT be subject to the provisions of the
Homeowners Protection
Act?
Select the Best Answer
Mark for review
|
A jumbo ARM loan
|
|
An FHA loan
|
|
A loan with
negative amortization
|
|
A loan sold to
Fannie Mae or Freddie Mac
|
28
If all of the
requirements for borrower-requested cancellation
under the HPA have been met,
the servicer cannot require further PMI payments from the borrower after:
Select the Best Answer
Mark for review
|
15 days
|
|
30 days
|
|
3 business days
|
|
60 days
|
29
Housing is
considered to be affordable when a family's housing expense does not exceed
what percentage of its gross monthly income?
Select the Best Answer
Mark for review
30
Which of the following is NOT an example of an adverse
action?
Select the Best Answer
Mark for review
|
The lender offers
a loan with a different payment duration than requested.
|
|
The lender agrees to fund the loan as requested.
|
|
The lender offers
a loan with a different interest rate than requested.
|
|
The application is
denied.
|
