SAFE Mortgage Comprehensive Online Exam with Questions and Verified Answers 2023.

SAFE Mortgage Comprehensive Online Exam with Questions and Verified Answers 2023.

Ethics Fraud for housing or fraud for property is one of the two major divisions of fraud in the mortgage industry. What is the other?

Fraud by mortgage brokers Fraud for greed Fraud for profit Correct Answer Fraud for lenders Answered correctly Fraud for profit is fraud committed by mortgage professionals.

MLO Mortgage Knowledge Which of the following is NOT an acceptable form of funds a buyer can present at settlement?

Cash Correct Answer Certified bank check Wired funds credited to the closing attorney’s escrow account Bank cashier’s check Answered correctly

Ethics What is the Safeguards Rule?www.ameritrain.com

Question #138

Question #237

Question #178

A rule that protects the contractual details between a broker and his employees A rule issued by HUD to protect consumers from excessive fees A rule for depository financial institutions to protect the transfer of electronic A rule issued by the FTC that requires companies to have measures to keep customer information safe Correct Answer Answered correctly The Safeguard Rule is issued by the FTC to implement the provisions of GLBA

Ethics Which of the following would be considered misrepresentation of assets?

Failing to disclose a second job Undisclosed second mortgage Correct Answer Forged pay stubs Misrepresented intent to occupy Answered correctly All answers are violations, however, an undisclosed second mortgage is over stating the equity in the property and equity is an asset

General Mortgage Knowledge

Question #142

The process where the lender holds legal title and the borrower holds

equitable title is:

Question #173

Binder theory Lien theory Deed theory Title theory Correct Answer Answered correctly There are two ways of perfecting title in the US. Title theory where the lender has legal title until the loan is paid and the borrower holds equitable title or possession rights.The other method is Lien theory where the borrower has both legal and equitable title and the lender is secured by a voluntary lien

General Mortgage Knowledge The minimum down payment requirement for a VA purchase for a qualified

applicant is:

10% 5% Zero Correct Answer 3.5% Answered correctly VA will guarantee 100 percent financed loans.

Federal Law The Truth-In-lending Act provides a right to rescind. Which statement would NOT reflect the law?

Consumers have until midnight of the third business day to rescind The choice to rescind requires the signatures of all parties on the security instrument Correct Answer Failure to provide the correct disclosures could result in a 3 year right to rescind The settlement agent must fully disclose the right to rescind Answered correctly Although all parties on the security instrument must sign the right to rescind form only one person can choose to cancel.The settlement agent must fully disclose the right to rescind Failure to provide the correct disclosures could result in a 3 year right to rescind

General Mortgage Knowledge

A HELOC would generally be categorized as:

Question #210

Question #135

Question #165

A closed end loan A fixed rate loan A fixed term loan An open end loan Correct Answer Answered correctly There are closed end HELOC loans, however, a HELOC is generally considered an open end loan with the ability to pay down the debt and reuse the credit line without refinancing

Federal Law Which of the following statements is incorrect relating to High Cost loans?www.ameritrain.com

Question #181

A high cost loan is subject to the provisions of TILA section 1026.32, known as section 32.A high cost loan is determined by exceeding HOEPA thresholds A high cost loan is exempt from the APR threshold Correct Answer

A high cost loan has a points and fees threshold Answered correctly High cost loans are loans that exceed the HOEPA APR and points and fees threshold and are subject to the provisions of TILA section 1026.32 which are the regulations for "high Cost Loans".

MLO Mortgage Knowledge The following are the NMLS pre-license requirements for state licensed

loan originators, EXCEPT:

www.ameritrain.com

Question #156

Background check Complete 8 hours of core education Complete 8 hours of pre-license education Correct Answer Pass a national exam Answered wrong The NMLS requirement is 20 hours of pre-license education including 8 hours of core education, a background check and pass a national and state exam

MLO Mortgage Knowledge Which of the following is not common to all types of QMs?

Maximum loan term 40 years Correct Answer No interest only No negative amortization Points and fees over $100K limited to 3 percent Answered wrong Maximum loan term 30 years

MLO Mortgage Knowledge

The Ability to Repay rule, ATR, primarily relates to the following:

Collateral Character Capital Capacity Correct Answer Answered correctly Capacity addresses the ability to repay

Ethics

The following statement is NOT correct relating to red flag requirements:

Question #

Question #

Question #149

The FTC has published 26 possible red flag items that can be incorporated within a written plan Mortgage brokers are exempt from the red flag program requirement Correct Answer The Red Flag program is associated with FACTA A red flag item is an action that may indicate the possibility of identity theft Answered correctly Mortgage brokers are not exempt from the red flag program requirements.Actually, all financial institutions including mortgage brokers must develop a written plan which identifies and detects the relevant warning signs or red flags that could indicate the possibility of identity theft.The red flag program is associated with FACTA and should include 26 red flag items created by the FTC

General Mortgage Knowledge FHA allows sellers to pay part of a borrowers closing costs and prepaid items. What percent of the sales price can sellers contribute?

Question #211

• percent
• percent Correct Answer
• percent
• percent

Answered correctly Contributions are not allowed towards the down payment requirement.

General Mortgage Knowledge This loan program insures 100% of the loss in the event a borrower

defaults:

Question #153

Veteran Administration (VA) Rural Housing Service (RHS) Federal Housing Administration (FHA) Correct Answer Fannie Mae Answered correctly The Federal Housing Administration (FHA), guarantees that the lender will be covered 100 percent for their loss in the event of a borrower defaulting on a FHA loan.VA 25%

MLO Mortgage Knowledge When a lender guarantees an interest rate for a fixed period, what is the term that describes this process?

Question #230

Registration Locking in Correct Answer Floating Automated underwriting Answered correctly Locking in a loan is the process of the lender assuring a rate will be available at some time in the future. The normal period of locking without a fee is between 15 days and 60 days

Ethics The Financial Crimes Enforcement Network (FINCEN) is most closely

associated with the following:

RESPA violations Home Ownership Equity Protection Act violations Higher Priced Mortgage Loans Suspicious activity reports Correct Answer Answered correctly SARS are required to be reported under the mandatory program required under FINCEN.

MLO Mortgage Knowledge A mortgage broker decides to solicit business from a previous customer who closed on a home purchase. What action could result in a $16,000 fine?

Question #134

Question #200

Contacting the customer 17 months after the purchase transaction closed The client is listed on the company no-call-list and the loan originator calls the customer just shy of 18 months after the purchase transaction closed Correct Answer Verifying that the customer is not on the no-call-registry before making a sales call 2 years after the purchase transaction closed The customer is on the no-call-register and the loan originator calls14 months later Answered wrong The Telemarketing Sales Rule prohibits companies from calling customers that are on the DO-Not-Call Registry after 18 months after the last business was done with the company and 3 months after an inquiry which is also the same as an application that did not close