Question 1

A borrower has told the mortgage loan originator that they had recently paid off an account that was listed on their credit report. Which of the following information will they need to provide the lender to prove the account has been paid off?

Options :

A : Oral confirmation from the borrower

B : An updated statement showing a zero balance

C : A letter from the borrower explaining that they paid it off

D : No additional information required

Answer: B

Question 2

Which of the following circumstances may indicate fraud with respect to the assets a borrower will use for closing?

Options :

A : Bank deposits that are not supported by income or other disclosures

B : Disclosure of gift funds

C : Parental loans disclosed but not yet received

D : Borrower-s receipt of a large bonus from an employer

Answer: A

Question 3

An easement:

Options :

A : is a mortgage modification.

B : is a right to cross or otherwise use someone else-s land for a specified purpose.

C : allows a loan applicant to close on a loan even if all the stipulations have not been met.

D :

allows a borrower to make less than the required payments without going through a full mortgage modification.

Answer: B

Question 4

Which of the following reasons is acceptable for denying a loan under the Equal Credit Opportunity Act (ECOA)?

Options :

A : Receipt of child support

B : Immigration status

C : Marital status

D : Country of birth

Answer: B

Question 5

Which of the following federal laws requires mortgage lenders to adopt and follow anti-money laundering (AML) rules and regulations?

Options :

A : The National Bank Act

B : The National Currency Act

C : The Bank Secrecy Act

D : The Real Estate Settlement Procedures Act

Answer: C

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