Which of the following statements is not correct regarding the escrow account for the brokerage?

1) All of the following are true regarding the Closing Disclosure, except:
​
A.    The creditor and the settlement agent can share responsibility for the Closing Disclosure.
B.    The settlement agent can complete all or part of the Closing Disclosure for the creditor.
C.    The creditor and the settlement agent must maintain close communication to ensure timely delivery of the Closing Disclosure.
D.    If the settlement agent prepares the entire Closing Disclosure, the settlement agent becomes responsible for its accuracy and delivery.

answer

The correct answer is D. Even if the settlement agent helps prepare the Closing Disclosure, the creditor always maintains full responsibility for the accuracy and timely delivery of the document.

2) The Closing Disclosure must be received by the borrower in which of the following time frames:

A.    At closing.
B.    Three (3) business days before consummation.
C.    Four (4) business days before consummation.
D.    Five (5) business days before consummation.

answer

The correct answer is B. This is a statement of fact.

3)  To deliver the Closing Disclosure in time, which of the following methods are acceptable:
​
A.    Deliver the Closing Disclosure in person.
B.    Mail it via the U. S. Postal Service.
C.    Send it electronically.
D.    Any of the above.

answer

The correct answer is D. Delivered in person, the CD is considered received the day it is provided. By USPS or email, it is considered received within three (3) business days.

4)  In a loan transaction that offers a three day (3) right of rescission, who must receive the Closing Disclosure?
​
A.    The lead consumer of the group of borrowers.
B.    Each consumer who has the right to rescind.
C.    The majority of consumers on the loan.
D.    Only consumers who are at the age of majority.

answer

The correct answer is B. This is a statement of fact.

5) In a loan transaction not subject to rescission provisions, which of the following must receive a Closing Disclosure:
​
A.    Any consumer with primary liability for the mortgage loan.
B.    All consumers on the loan.
C.    Each and every borrower on the loan.
D.    All of the above.

ANSWER

The correct answer is D. This is a statement of fact.

6) Under TRID, the Closing Disclosure combines which of the following two forms:
​
A.    The GFE and the HUD-1 Settlement Statement.
B.    The Initial Truth in Lending Statement and Mortgage Servicing Disclosure Statement.
C.    The Final Truth in Lending Statement and the HUD-1 Settlement Statement.
D.    The GFE and the Initial Escrow Statement.

ANSWER

The correct answer is C. This is a statement of fact.

7) Two major pieces of information provided in the new integrated Closing Disclosure includes which of the following:
​
A.    The final statement of closing costs.
B.    The final Truth in Lending Statement, disclosing the APR
C.    Estimated cash to close.
D.    A & B.

ANSWER

The correct answer is D. The final Closing Disclosure form discloses cash to close down to the penny.

8) Closing costs disclosures on the integrated Closing Disclosure include which of the following:
​
A.    Fees paid by the borrower.
B.    Fees paid by the seller.
C.    Fees paid by third parties.
D.    All of the above.

ANSWER

The correct answer is D. Page 2 of the CD.

9) The integrated Closing Disclosure breaks down fees paid by the borrower and seller according to which of the following:
​
A.    At closing and after closing.
B.    At closing and before closing.
C.    Before closing and after closing.
D.    Paid by personal check or certified funds.

ANSWER

The correct answer is B. Page 2 of the CD. For example, the borrower would pay the credit report fee right up front (before closing) and the seller might pay a home inspection fee to an engineering company before closing, but most fees are paid at closing.

10) How many pages does the new integrated Closing Disclosure form contain?
​
A.    2.
B.    3.
C.    4.
D.    5.

ANSWER

The correct answer is D. Five pages.

11) Which of the following is disclosed on the integrated Closing Disclosure for the borrower that previous forms did not contain:
​
A.    APR.
B.    Nominal interest rate.
C.    Whether or not changes had occurred between the initial Loan Estimate and the Closing Disclosure.
D.    Total closing costs due at closing.

ANSWER

The correct answer is C. This is on page 3 of the CD, Calculating Cash to Close.

12) Which of the following is disclosed on the integrated disclosure forms that was not disclosed on previous forms:
​
A.    APR.
B.    TIP.
C.    PMI.
D.    MIP.

ANSWER

The correct answer is B. TIP is the total amount of interest the borrower will pay over the term of the loan as a percentage of the loan amount.

13) If a borrower’s payment is late, under which time-frame will the lender charge a late fee?
​
A.    10 days late.
B.    More than 10 days late.
C.    15 days late.
D.    More than 15 days late.

ANSWER

The correct answer is D. This is a statement of fact.

14) What is the maximum late fee the lender can charge?
​
A.    3% of principal and interest payment.
B.    5% of principal and interest payment.
C.    10% of principal and interest payment.
D.    12% of principal and interest payment.

answer

The correct answer is B. This is a statement of fact.

15) Which of the following does the Closing Disclosure reveal about negative amortization:
​
A.    If the borrower is scheduled to make payments that do not pay all interest due in a given month.
B.    If the borrower may have monthly payments that do not pay all interest due in a given month.
C.    If the borrower does not have a negative amortization feature in the mortgage.
D.    All of the above. 

answer

The correct answer is D. One of the boxes on the form will be checked, indicating one of these answers.

16.    The integrated Closing Disclosure reveals which of the following regarding the borrower making partial payments:
​
A.    The lender may accept partial payments and apply them to the loan.
B.    The lender may hold partial payments in a separate account and apply them to the loan when the borrower makes the rest of the payment.
C.    The lender does not accept partial payments.
D.    All of the above.​

answer

The correct answer is D. This information is available on page 4 of the Closing Disclosure under Additional Information About This Loan.

17.    The integrated Closing Disclosure reveals all of the following about assuming the loan, except:
​
A.    The lender will allow the assumption of this loan without qualification.
B.    The lender will allow the assumption of this loan on the original terms.
C.    The lender will not all the loan to be taken over subject to.
D.    The lender will allow the assumption of the loan under certain conditions

answer

The correct answer is C. Page 4 of the Closing Disclosure does not mention subject to, which leaves the original borrower in a position of liability regarding the loan.

18.    What type of interest is the borrower granting when they take out a loan to purchase the property?
​
A.    Equitable interest.
B.    Security interest.
C.    Dower interest.
D.    Trust interest.

answer

The correct answer is B. Yes, the borrower has granted a security interest in the property to the lender.

19.    Under which of the following circumstances would the lender be able to demand early repayment of the loan:
​
A.    Default on payments.
B.    Fraud in obtaining the loan.
C.    Severe damages to the collateral property.
D.    All of the above.

answer

The correct answer is D. Under these circumstances, the lender is allowed to protect its position.

20.    Impound account items include all of the following, except:
​
A.    Recurring ownership costs.
B.    Property taxes.
C.    Mortgage interest.
D.    Homeowner’s insurance.​

answer

The correct answer is C. Mortgage interest, of course, is paid with the P&I mortgage payment.

21.    All of the following are reasons a homeowner might not have an impound account, except:
​
A.    The homeowner declined it.
B.    The lender does not offer it.
C.    The state does not allow it.
D.    None of the above.

answer

The correct answer is C. An impound account helps pay home ownership costs on a gradual basis and is not illegal in any state..

22.    Which of the following are potential consequences of a borrower not having an impound account:
​
A.    The borrower will have to pay property costs directly.
B.    The borrower may fall behind in property taxes and have to pay penalties and fines.
C.    The lender may add any costs it has had to pay on behalf of the borrower to the loan amount.
D.    All of the above.

answer

The correct answer is D. In addition, the lender may buy property insurance for the borrower and force the borrower to pay for it.

23.    Page 5 of the Closing Disclosure, under Other Disclosures states that if the borrower borrows more than the property is worth, which of the following is true:
​
A.    The interest on the loan amount above this property’s fair market value is still deductible on federal income taxes.
B.    The interest on the loan amount above this property’s fair market value is not deductible on federal income taxes.
C.    The excess loan amount can be recovered through a deficiency judgment by the lender in a trustee’s sale.
D.    The borrower will have to pay the remaining debt after foreclosure.

answer

The correct answer is B. This is true, page 5 of the Closing Disclosure.

24.    Page 5 of the Closing Disclosure, under Other Disclosures, reveals that refinancing the loan will depend on which of the following:
​
A.    The value of the property.
B.    The borrower’s future financial condition.
C.    Market conditions.
D.    All of the above.

answer

The correct answer is D. Refinancing the loan depends on all of these important issues, so there can be no guarantee of refinancing the loan.

25.    All of the following are true regarding the borrower and the appraisal for the property being financed, except:
​
A.    Since the borrower is the appraiser’s client, and the client has paid for the appraisal, the borrower is entitled to a copy of the appraisal.
B.    The lender is required to give to the borrower a copy of the appraisal at no additional cost.
C.    The borrower is entitled to receive a copy of the appraisal at three (3) days before closing.
D.    The appraiser can only give a copy of the appraisal to his/her client.

answer

The correct answer is A. The borrower is not the appraiser’s client, so the appraiser cannot give the borrower a copy. The lender, however, is obligated to provide a copy to the borrower.

26.    Which of the following items of contact information is provided to the borrower on the Closing Disclosure:
​
A.    Lender.
B.    Mortgage Broker.
C.    Settlement agent.
D.    All of the above.​

answer

The correct answer is D. Yes, all of this contact information as well as that of the Real Estate Broker (s) in the transaction.

27.    If the settlement agent takes responsibility for delivery of the Closing Disclosure, he may do which of the following:
​
A.    Deliver a copy of the borrower’s disclosure to the seller.
B.    Provide a copy of the Closing Disclosure to the seller even if the disclosure contains only charges and costs of the borrower.
C.    Provide a copy of the borrower’s Closing Disclosure to the seller only if it also contains the seller’s charges and costs.
D.    If the seller signs a separate Closing Disclosure, the settlement agent need not deliver a copy to the creditor.

answer

The correct answer is C. This is a statement of fact.

28.    Adjustable Rate Mortgage disclosures required to be signed at closing need to be provided to which of the following:
​
A.    All borrowers on the loan.
B.    All borrowers with the power to rescind.
C.    Only to a borrower who expresses an interest in receiving a copy.
D.    None of the borrowers are entitled to receive a copy of the ARM disclosure.

answer

The correct answer is C. This is a statement of fact.

29.    Which of the following is true about consummation of the loan:
​
A.    It is the funding of the loan.
B.    It is the time when the consumer becomes contractually obligated to the lender.
C.    It coincides with the closing of the real estate transaction.
D.    It is the time of signing of the loan documents on a loan with a right of rescission.​

answer

The correct answer is B. This is a statement of fact.

30.    In a timeshare transaction, when must the lender deliver the Closing Disclosure to the consumer?
​
A.    Three (3) business days before closing.
B.    Three (3) business days before consummation.
C.    One day before consummation.
D.    On the day of consummation.

answer

The correct answer is D. This is correct for time shares.

31.    If a settlement is scheduled tomorrow, but the Closing Disclosure was just received yesterday, how can the lender legally close at the scheduled time?
​
A.    If settlement is necessary to meet a bona fide financial emergency.
B.    If the lender applies for and receives a Certificate of Early Closing (CEC) from the CFPB.
C.    If the borrower signs a notarized statement waiving the three (3) day waiting period.
D.    There is no way to close legally without extending the closing date.

answer

The correct answer is A. This is the one circumstance that will allow a modification of the three (3) business day waiting period.

32.    A consumer may waive or modify the three (3) day business day waiting period under which of the following circumstances:
​
A.    The extension of credit is needed for a bona fide personal financial emergency.
B.    The consumer has already received the Closing Disclosure.
C.    The consumer specifically describes the financial emergency.
D.    All of the above.​

answer

The correct answer is D. These circumstances and actions enable an early closing.

33.    In claiming a bona fide personal financial emergency, the consumer must do which of the following:
​
A.    Give the creditor a dated, written statement that describes the emergency, like imminent foreclosure.
B.    Specifically modify or waive the waiting period.
C.    Include the signatures of all consumers who are primarily liable for the mortgage.
D.    All of the above.

answer

The correct answer is D. Yes, these are the steps that must be taken.

34.    To waive or modify the three (3) business day waiting period, the CFPB provides guidelines regarding the bona fide personal financial crisis to include which of the following:
​
A.    An imminent foreclosure will proceed unless loan proceeds are made available.
B.    Borrowers must request the waiver in a hand-written statement.
C.    The handwritten statement must be signed by all primary obligors on the loan.
D.    All of the above.

35.    When may a revised Loan Estimate not be issued?
​
A.    After the receipt of a completed Loan Application.
B.    If the lending entity makes ten (10) or fewer loans per year.
C.    After the creditor provides the Closing Disclosure.
D.    If the loan is a construction loan.

answer

The correct answer is C. Once the Closing Disclosure has been provided, it is too late to go back and revise the Loan Estimate. Revise the Closing Disclosure.

36.    To provide disclosures in a timely manner, the lender must put a revised Loan Estimate in the mail in which of the following time frames:
​
A.    Three (3) business days before consummation.
B.    Four (4) business days before consummation.
C.    Five (5) business days before consummation.
D.    Seven (7) business days before consummation.

answer

The correct answer is D. The lender must allow 3 business days for delivery, and the revised Loan Estimate must be received 4 business days prior to the consummation of the loan.

37.    Which of the following borrowers must sign the Closing Disclosure:
​
A.    Only those who request to do so.
B.    Only the primary obligors.
C.    All borrowers on the loan.
D.    Only the borrowers who were the primary qualifiers on the loan.

answer

The correct answer is C. This is necessary for closing.

38.    The general rule is that a creditor must deliver a revised Loan Estimate to the consumer in which of the following time frames:

A.    Immediately upon receiving information of a changed circumstance.
B.    No later than three (3) business days after receiving information of a changed circumstance.
C.    No later than four (4) business days after receiving information of a changed circumstance.
D.    No later than five (5) business days after receiving information of a changed circumstance.​

answer

The correct answer is B. This ensures that the revised LE is transmitted in a timely manner.

39.    A revised Closing Disclosure must be issued within which of the following time frames:
​
A.    At closing.
B.    At consummation.
C.    Three (3) business days prior to consummation.
D.    In five days.

40.    The three (3) business day waiting period applies to a corrected Closing Disclosure dealing with which of the following changes:
​
A.    Changes to the APR.
B.    Changes to the loan product itself.
C.    The addition of a prepayment penalty.
D.    All of the above.​40) Which of the following statements are true regarding federally mandated waiting periods prior to closing a loan:
​
A.    They are federal mandates and there are no exceptions.
B.    There are exceptions for holidays when spending money is needed.
C.    There are exceptions such as a bona fide personal financial emergency, like imminent foreclosure.
D.    Only state guidelines permit exception.

41.    If a last-minute change does not involve changes to the APR, the loan product, or the addition of a prepayment penalty, the corrected Closing Disclosure must be provided when?
​
A.    At or before consummation.
B.    Three (3) business days before consummation.
C.    Four business days prior to consummation.
D.    Even after closing just so the change is documented.

answer

The correct answer is A. Yes, if the changes do not involve APR, loan produce, or adding a prepayment penalty, the CD must be provided at or before consummation.

42.    A consumer may receive a corrected Closing Disclosure after consummation for which of the following reasons:
​
A.    It corrects a numerical error.
B.    It may include proceeds for a lender tolerance cure.
C.    It corrects a non-numerical clerical error.
D.    All of the above.

answer

The correct answer is D. It is presumed that these types of errors will not have a material impact on the loan transaction.

43.    Which of the following time frames applies to a Closing Disclosure that has become inaccurate and results in a change to the amount paid by the consumer:
​
A.    Three (3) business days.
B.    Ten (10) business days.
C.    Thirty (30) days.
D.    Forty-five (45) days.

answer

The correct answer is C. Yes, the lender must provide the corrected Closing Disclosure within 30 days, along with any funds that might be owed to the consumer.

44.    Which of the following time frames must be observed by the lender to correct non-numerical clerical errors and refunds for tolerance violations:
​
A.    Three (3) business days.
B.    Ten (10) business days.
C.    Thirty (30) days.
D.    Sixty (60) days.

answer

The correct answer is D. This according to TILA.

45.    Which of the following time frames must be observed by the lender to correct a Closing Disclosure that becomes inaccurate and results in a change to the amount paid by the seller:
​
A.    Three (3) business days.
B.    Ten (10) business days.
C.    Thirty (30) days.
D.    Sixty (60) days.

answer

The correct answer is C. The lender must provide corrected disclosures and any additional funds owed. (TILA)

46.    Which of the following time frames must be observed by the lender to correct a Closing Disclosure when the creditor cures a tolerance violation and provides a refund to a consumer:
​
A.    Three (3) business days.
B.    Ten (10) business days.
C.    Thirty (30) days.
D.    Sixty (60) days.

answer

The correct answer is D. The lender must provide corrected disclosures and any additional funds owed. (TILA).

47.    All of the following disclosures may be provided to a consumer after loan consummation, except:
​
A.    Escrow Closing Notice.
B.    Mortgage Servicing Disclosure Statement.
C.    Partial Payment Policy Disclosure.
D.    Servicing Transfer Disclosure Statement.

answer

The correct answer is B. This disclosure is provided within three (3) business days of completed application.

48.    Under what circumstances must the Escrow Closing Notice be provided by the creditor?
​
A.    When the borrower had an escrow (impound) account and has requested cancellation.
B.    Upon borrower’s request for cancellation, the Escrow Closing Notice must be provided within thirty (30) days of cancelling.
C.    If the escrow account is cancelled by the lender, the Escrow Closing Notice must be provided within three (3) business days before the account is closed.
D.    The Escrow Closing Notice must be provided by the lender at the time of cancelling the escrow account.

answer

The correct answer is A. Under these circumstances, the borrower must receive the Escrow Closing Notice within three (3) business days before the escrow account is closed.

49.    All of the following are true regarding the Partial Payment Policy Disclosure, except:
​
A.    Different lenders have different policies regarding the receipt of partial payments.
B.    The mortgage broker cannot be expected to know of the policy of each lender he/she works with.
C.     If the loan is sold, the policy could be different.
D.    The policy is disclosed as a courtesy to the borrower in the case of hard times.

answer

The correct answer is B. Actually, the mortgage broker (MLO) is expected to know the partial payment policy of each wholesaler he/she works with so the disclosure can be accurate.

50.    When the servicing of a mortgage loan is changed, the Servicing Transfer Disclosure Statement must include which of the following information:
​
A.    Contact information for the covered person.
B.    Identity of the mortgage loan sold.
C.    The date of transfer.
D.    All of the above.

answer

The correct answer is D. Also included in the disclosure is contact information for an agent authorized to resolve issues regarding the consumer’s payments on the loan.

Which of the following correctly defines brokerage?

Who inspects brokers records in Florida?

Which phrase below best describes the meaning of the term annual percentage rate?

Can a post dated check be accepted as an earnest money payment quizlet?