RE Unit 6

What is the required down payment if the purchase price is $268,000 and the lender will approve a loan-to-value ratio of 80%?

A) $21,440
B) $52,600
C) $8,000
D) $5,440
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Terms in this set (24)
What is the required down payment if the purchase price is $268,000 and the lender will approve a loan-to-value ratio of 80%?

A) $21,440
B) $52,600
C) $8,000
D) $5,440
A) $21,440
Which of the following laws requires the lender to inform the borrower of the annual percentage rate before signing the loan documents?

A) Fair Credit Reporting Act
B) Equal Credit Opportunity Act
C) Truth In Lending Act
D) Real Estate Settlement Procedures Act
C) Truth In Lending Act
In originating a loan covered by RESPA, the lender is required to

A) Make a disclosure of all charges no later than 12 days in advance of the date of settlement
B) Provide a statement of settlement charges and fees only at the time of the settlement
C) Provide the borrower with a loan estimate within three business days after the loan application is received
D) Advise borrowers that they have the right in all cases to rescind the loan for at least three days after the loan is made
C) Provide the borrower with a loan estimate within three business days after the loan application is received
Which of the following statements in an advertisement would trigger full disclosure of terms under Regulation Z?

A) "3-bedroom, split-level has assumable loan"
B) Ranch house on 1 acre, seller financing available"
C) "4BR, 2-bath house with $600 monthly payments at 8% interest"
D) "Estate house, 5000 sq. ft. with good terms available"
C) "4BR, 2-bath house with $600 monthly payments at 8% interest"
Regulation Z requires full disclosure of the:

A) Cost of obtaining credit by expressing interest and costs as an annual percentage rate
B) Cost of making repairs caused by depreciation
C) Three day right to rescind for a mortgage used to acquire a home
D) Maintenance and repairs
A) Cost of obtaining credit by expressing interest and costs as an annual percentage rate
Regulation Z requires disclosure of all of the following items EXCEPT:

A) Annual percentage rate
B) Title insurance fees
C) Monthly payments
D) Total interest charges
B) Title insurance fees
The provisions of the Real Estate Settlement Procedures Act apply to all of the following property types EXCEPT:

A) Vacant single-family residence
B) Duplex
C) Condominium unit
D) Owner-occupied 5-plex
D) Owner-occupied 5-plex
Within three days of the mortgage loan application, the Real Estate Settlement Procedures Act requires which of the following to be disclosed?

A) An estimate of referral fees
B) The name of the title insurance company
C) Loan Estimate (or CFPB's settlement cost booklet) ?
D) A statement of the annual percentage rate
C) Loan Estimate (or CFPB's settlement cost booklet) ?
The Fair Credit Reporting Act allows an individual to review their first file at the credit bureau and:

A) Have any incorrect information changed
B) Remove three negative items
C) Change any adverse information
D) Select a new credit bureau
A) Have any incorrect information changed
Regulation Z requires:

A) Disclosure of all affiliated business arrangements
B) A loan to be guaranteed by the VA or FHA
C) Expressing the costs of financing in both dollars and as an annual percentage
D) Adherence to the Equal Credit Opportunity Act
C) Expressing the costs of financing in both dollars and as an annual percentage
The purpose of the closing disclosure is to: A) Provide the borrower with a statement of loan charges at settlement B) Provide an initial estimate of the annual percentage rate on a loan C) Give an initial loan estimate of closing costs D) Prevent kickbacks to licenseesA) Provide the borrower with a statement of loan charges at settlementThe Real Estate Settlement Procedures Act applies: A) When seller financing is used B) Any time financing is used C) When the financing comes from a federally related loan D) Upon assumption of an existing loanC) When the financing comes from a federally related loanThe primary purpose of RESPA is to: A) Provide full disclosure of costs in a transaction B) Restrict title company's charges C) Reduce the control of mortgage companies D) Disclose financing chargesA) Provide full disclosure of costs in a transactionA mortgage broker is processing a loan for a woman. If she is denied the loan because she is an unmarried woman, the mortgage broker is violating: A) FCRA B) ECOA C) Regulation Z D) RESPAB) ECOAThe law that prohibits disclosure of a person's personal information without their consent is: A) Fair Credit Reporting Act B) Consumer Privacy Act C) Equal Credit Opportunity Act D) Real Estate Settlement Procedures ActB) Consumer Privacy ActWhich of the following acts prevents the lender from holding excess money in an impound account? A) Consumer Credit Protection Act B) Real Estate Settlement Procedures Act C) Fair Credit Reporting Act D) Equal Credit Opportunity ActB) Real Estate Settlement Procedures ActThe Equal Credit Opportunity Act extends protection over and above the federal Fair Housing Act based on? A) Race and color B) Religion and creed C) Marital status and age D) Sex and national originC) Marital status and ageWhich of these transactions requires the use of a Closing Disclosure? A) New home purchase with conventional financing B) New home purchase by assumption C) New home purchase with seller financing D) New home purchase with cashA) New home purchase with conventional financingWhat law requires the use of the Closing Disclosure? A) Truth in Lending Act B) Reg Z C) Real Estate Settlement Procedures Act D) CFPBC) Real Estate Settlement Procedures ActThe Closing Disclosure must be given to a borrower how many business days prior to loan consummation? A) One day B) Three days C) Five days D) Seven daysB) Three daysUnder Regulation Z, which advertisement would require full disclosure of credit terms? A) "Affordable rates available" B) "Assume loan at 8% interest" C) "Low down payment" D) "Terms to please everyone"C) "Low down payment"You can contact a former client for up to how many months after a transactions closes even if that client is on the National Do Not Call Registry? A) 9 months B) 12 months C) 18 months D) 24 monthsC) 18 monthsWhich is LEAST LIKELY to be an example of an illegal kickback under RESPA? A) A brokerage allows a title company to use its downtown offices to conduct closings as a convenience to downtown clients B) Every month, a title company pays for a one-page ad in the local newspaper for the real estate brokerage that sends them the most referrals C) A home inspector gives a broker tickets to a football game to thank him for the business he's sent his way this year D) A mortgage company puts a link to a real estate company's website on its website in exchange for the broker sending buyer clients their wayA) A brokerage allows a title company to use its downtown offices to conduct closings as a convenience to downtown clientsThe legislation that sets out specific procedures and guidelines for closing and settlement procedures is: A) ECOA B) Regulation Z C) RESPA D) TILAC) RESPA