CMB - Certified Mortgage Banker Loan Administration and Servicing Questions and Answers

Question 1

A borrower with a federally related mortgage loan has failed to maintain the required hazard insurance on their property.
According to RESPA, what is the first step a servicer must take before purchasing force-placed insurance?

Accepted Answer

Send a written notice to the borrower at least 45 days before assessing any premium or fee.

Answer

Immediately purchase a new policy to avoid a lapse in coverage.

Answer

Contact the borrower's insurance agent to inquire about the policy status.

Answer

Increase the borrower's escrow payment to cover the anticipated new premium.

Question 2

A mortgage servicer is performing the annual escrow analysis for a borrower's account and discovers a surplus of $75. According to RESPA's Regulation X, what is the servicer required to do?

Accepted Answer

Refund the entire surplus to the borrower within 30 days of the analysis.

Answer

Apply the surplus to the next year's escrow payments to reduce the monthly amount.

Answer

Hold the funds in the escrow account as an additional cushion.

Answer

Use the surplus to make a principal curtailment on the loan.

Question 3

Which of the following is considered a home retention option in loss mitigation, designed to assist a borrower who has experienced a temporary, resolved hardship and can now resume their regular payments plus an additional amount to catch up on missed payments?

Accepted Answer

Repayment Plan

Answer

Short Sale

Answer

Deed-in-Lieu of Foreclosure

Answer

Loan Modification

Question 4

A mortgage servicing company is transferring the servicing of a loan to another company. Under RESPA, what is the standard timeframe for the transferor servicer to notify the borrower before the effective date of the transfer?

Accepted Answer

Not less than 15 days

Answer

At least 30 days

Answer

Within 5 business days

Answer

Exactly 45 days

Question 5

A borrower, facing a long-term financial hardship, can no longer afford their mortgage payment even with a modification. They agree to voluntarily transfer ownership of the property to the mortgage holder in exchange for being released from the loan obligation. This loss mitigation strategy is known as:

Accepted Answer

A Deed-in-Lieu of Foreclosure

Answer

Forbearance

Answer

Reinstatement

Answer

Payment Deferral

Question 6

During the 60-day period following the effective date of a servicing transfer, a borrower mistakenly sends their mortgage payment to the old (transferor) servicer. The payment is received on time. According to RESPA, how must this payment be treated?

Accepted Answer

The payment cannot be treated as late for any purpose.

Answer

The old servicer can charge a fee for forwarding the payment.

Answer

The payment may be treated as late by the new servicer.

Answer

The borrower must be charged a late fee by the old servicer.

A borrower with a federally related mortgage loan has failed to maintain the required hazard insurance on their property.According to RESPA, what is the first step a servicer must take before purchasing force-placed insurance?

A borrower with a federally related mortgage loan has failed to maintain the required hazard insurance on their property.
According to RESPA, what is the first step a servicer must take before purchasing force-placed insurance?