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The requirement for private mortgage insurance is generally is continued when the loan-to-value ratio falls below:
A.) 20%
B.) 50%
C.) 80%
D.) 90%
C.) 80%
Which of the following documents itemizes all settlement costs including lender charges?
A.) Agreement of sale
B.) HUD-1/closing Disclosure
C.) Form 1003
D.) Forbearance agreement
B.) HUD-1/closing Disclosure
According to the Truth-in-Lending Act (TILA), the term "refinance" applies to
A.) A change in a payment schedule
B.) A reduction in annual percentage rate
C.) The renewal of a single payment obligation with no change in the original terms
D.) The satisfaction of an existing obligation and its replacement by a new obligation
D.) The satisfaction of an existing obligation and its replacement by a new obligation
What does a loan originator use to determine the estimated value of a property based on an analytical comparison of similar property sales?
A.) An appraisal
B.) A market survey
C.) An area survey
D.) A Cost-benefit analysis
A.) An appraisal
A discount point is BEST described as a charge the borrower pays to:
A.) A lender to decrease the interest rate on the mortgage loan
B.) A mortgage broker at the time of application to obtain a favorable rate
C.) The seller as part of the closing costs of a loan
D.) A lender to ensure against foreclosure
A.) A lender to decrease the interest rate on the mortgage loan
A buyer has made an earnest money payment of $5,000. The buyer pays an additional $2,000 in option money to be credited at closing on property with sale price of $160,000. If the required down payment is 20%, how much additional money will the buyer need to provide toward the down payment at closing?
A.) $32,000
B.) $27,000
C.) $30,000
D.) $25,000
D.) $25,000
$160,000 x .20 (20%) = 32000 - $7,000 = $25,000
If an applicant works 40 hours every week and is paid $13.52 per hour, what is the applicant's monthly income?
A.) $2,163.20
B.) $2,343.47
C.) $2,379.52
D.) $2,487.68
B.) $2,343.47
$13.52x 40 hours = $540.8 x 52 weeks = $28,121.6 annually /12month = $2,343.47 Monthly income
Which of the following methods of disclosure does NOT meet the requirements of Equal Credit Opportunity Act (ECOA)?
A.) E-mail
B.) Mailed letter
C.) Telephone
D.) Faxed letter
C.) Telephone
Term "20 basis points" expressed as a percentage is:
A.) 0.2%
B.) 0.20%
C.) 2.00%
D.) 20.00%
B.) 0.20%
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