Forensic Mortgage Examiners Course Professional examination for home loan course for accuracy and violation purposes NAMSE published on January 20, 2011 Stacked 1/28 What is a Arm? Adjustable Rate Mortgage Variable Rate Mortgage None of the above 2/28 What is TILA? Loan Document Truth in Lending Act Truth In Lending Action 3/28 What is RESPA? Recorded Estate Settlement Act Real Estate Settlement Procedure Act Real Property Settlement Procedure Office Loan Document 4/28 What is a 1003? Loan Application Client financial form A government issued document None of the above 5/28 What is a HUD-1? Housing Development Form Housing Urban Development Loan Document Final Transaction Document None of the above 6/28 Where is the APR located? TILA RESPA HUD-1 None of the above 7/28 Where can you locate the final interest rate? Mortgage Deed Mortgage Note 1003 TILA 8/28 What is the GFE? Great Faith Estimate Good Faith Example Good Faith Estate None of the above 9/28 What is a Mortgage Deed? Client end report Contractual Agreement Client Home Mortgage Example of Loan Process None of the above 10/28 What is T-REX form? Tax lien Recording for taxes Verification of client's tax records Government backed loan 11/28 Who is the originator for loans? Loan Officer Mortgage Broker Lender Borrower A, B, and C None of the above 12/28 Common mistakes made on loans, would be Borrower's name Borrower's Employment Borrower's Income Interest Rates APR Property Value No, signatures All of the above C and G 13/28 Are the Promissory Note and Loan Note the same? Yes No None of the above 14/28 What is the principal? Loan Amount Loan Amount Borrowed Loan Amount Plus Interest 15/28 The interest owed is calculated against? The principal balance Prepayment charges Purchase Price 16/28 Where is the correct principal balance owed located? Deed 1003 TILA HUD-1 Statement A, C, and D None of the above 17/28 Sub-Prime is Conventional Unconventional Prime 18/28 Abusive profit lenders partake in is Earned Commission Lender Points Assessed Based Financing None of the above 19/28 Who would be more likely to receive a sub-prime mortgage? Minorities Low-Income Middle Class Urban Communities Elderly A and B are most likely to receive a sub-prime mortgage 20/28 What is the most likely reason a homeowner would accept the terms and conditions of a sub-prime mortgage? Credit Score Steering by the Mortgage Company Few choice leads to sense of loss To scam the lender A,B, and C None of the above 21/28 What changed the market significantly Incomes increased Rise in Property Value Non-Traditional Lending None of the above 22/28 Definition for a "Alternative" or "Non-Traditional" loan is interest only option-payment adjustable rate mortgage hybrid adjustable a loan with a fixed rate for a period of time followed by a rate increase as often as six months lending without regard for the borrower's ability to repay All of the above 23/28 Underwriting major issue is Lack of knowledge Robo Signer Teaser rate underwriting none of the above 24/28 Causes of Mortgage Lending Abuse Deregulation Rise in Real Estate Values Reverse Redlining Rise in Secondary Mortgage Market Securitization Prime and Subprime Mortgages Tax Reform None of the above 25/28 How is the lender paid Yield Spread Premium Commission A and B None of the above 26/28 Can mobile home sellers and home improvement contractors act as mortgage brokers? Yes No Unsure 27/28 How do the sub-prime lenders justify the loans approved? Credit Score High Risk Borrowers Fannie Mae Guidelines None of the above 28/28 What is asset based lending? Type answer. Hint: 32 characters
