Sample Practice Test

1.  The Real Estate Settlement Procedures Act (RESPA) is also known as

     A. Regulation B.

     B. Regulation C.

     C. Regulation X.

     D. Regulation Z.

 

2.The sales price of a home is $100,000 on a 90% LTV 30-year fixed mortgage. Fannie Mae/Freddie Mac requires 25% coverage, giving us a rate of 0.62%. What is the loan amount?

     A.$25,000

     B.$62,000

     C.$90,000

     D.Not enough information is provided.

3.Under the SAFE Act, a state has all of the following authorities EXCEPT

     A.to deny, suspend, or revoke licenses.

     B.to issue cease and desist orders.

     C.to waive the requirement for fingerprints for an initial license application.

     D.to write rules and regulations.

4.What type of loan has a non-refundable funding fee?

     A. conventional loan

     B. FHA loan

     C. subprime loan

     D. VA loan

5.Under the CFPB, the following groups are identified as types of consumer and protection laws EXCEPT

     A.Credit Authorization and Security.

     B.Financial Disclosure.

     C.Privacy Protection and Consumer Identification.

     D.Prohibition of Predatory Lending.

6.According to the GLB Act, an individual who obtains or has obtained a financial product or service from a financial institution is a

     A.borrower.

     B.consumer.

     C.creditor.

     D.customer.

7.The Gramm-Leach-Bliley Act contains all of the following provisions EXCEPT

     A.Financial Privacy Rule.

     B.National Do Not Call Registry.

     C.Pretexting Provisions Rule.

     D.Safeguards Rule.

 

8.  Which regulation encourages financial institutions to help meet the credit needs of their communities, including low- and moderate-income neighborhoods, consistent with safe and sound lending practices?

     A. CRA

     B. HOEPA

     C. RESPA

     D. TILA

 

9.  According to ECOA, a borrower can request a copy of the appraisal report used in the decision process within ___ days of a credit decision.

     A. 30

    B. 60

    C. 90

    D. 120

10.  Conforming loans follow the underwriting guidelines of

     A. Fannie Mae and Freddie Mac.

     B. FHA and VA.

     C. Freddie Mac and Ginnie Mae.

     D. Ginnie Mae and HUD.

ANSWER KEY:  1-C, 2-C, 3-C, 4-D, 5-A, 6-B, 7-B, 8-A, 9-C, 10-A

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