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| Section | Objectives |
|---|---|
| Ethics and Professional Conduct | - Disclosure Requirements - Consumer Protection Standards - Fraud Prevention |
| Federal Mortgage-Related Laws | - Truth in Lending Act (TILA) / Regulation Z - Fair Housing Act - Real Estate Settlement Procedures Act (RESPA) - Equal Credit Opportunity Act (ECOA) |
| Uniform State Content | - State Lending Regulations Overview - Licensing Requirements and Compliance |
| General Mortgage Knowledge | - Loan Closing Procedures - Loan Origination Process - Mortgage Types and Products - Underwriting Basics |
Which of the following loan types is regulated by the Home Ownership and Equity Protection Act (HOEPA)?
Correct Answer: D 🗳️
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Interest-only mortgages are considered high risk compared to traditional mortgage products because:
Correct Answer: C 🗳️
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Which of the following statements describes an advantage of a purchase money second mortgage?
Correct Answer: A 🗳️
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When a mortgage loan originator (MLO) receives information from a borrower that indicates potential employment fraud, the MLO should:
Correct Answer: B 🗳️
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A borrower visits a mortgage loan originator (MLO) for Mortgage ABC to discuss getting a home equity line of credit (HELOC) loan from Bank LMN. The MLO encourages the borrower to apply with Bank XYZ instead because ABC does not provide HELOC loans. When the borrower submits an application directly to XYZ, XYZ pays the MLO $100 from the 1% origination fee that it collected from the borrower. Is this fee permissible?
Correct Answer: B 🗳️
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