FiCEP Housing and Mortgage Counseling

Question 1

Which federal law requires lenders to provide a Loan Estimate to mortgage applicants within three business days of receiving a completed application?

Accepted Answer

TILA-RESPA Integrated Disclosure (TRID) rule

Answer

Truth in Lending Act (TILA)

Answer

Real Estate Settlement Procedures Act (RESPA)

Answer

Fair Housing Act

Question 2

What is the primary purpose of a HUD-approved housing counseling agency in the mortgage process?

Accepted Answer

To provide unbiased education and counseling to help clients make informed housing decisions

Answer

To originate home loans on behalf of borrowers

Answer

To appraise property values for lenders

Answer

To issue title insurance policies

Question 3

A borrower's front-end debt-to-income (DTI) ratio compares which two figures?

Accepted Answer

Monthly housing expenses to gross monthly income

Answer

Total monthly debt payments to gross monthly income

Answer

Net monthly income to total outstanding debt

Answer

Monthly savings to net monthly income

Question 4

Under the Equal Credit Opportunity Act (ECOA), a lender must notify an applicant of a credit decision within how many days of receiving a completed application?

Accepted Answer

30 days

Answer

15 days

Answer

45 days

Answer

60 days

Question 5

What does the term 'escrow' refer to in the context of a mortgage payment?

Accepted Answer

Funds held by a third party to pay property taxes and insurance on behalf of the borrower

Answer

The lender's profit margin on the loan

Answer

The borrower's down payment held until closing

Answer

The penalty fee for paying off a mortgage early

Question 6

Which program provides mortgage insurance for loans made by FHA-approved lenders to low-to-moderate income borrowers with down payments as low as 3.5%?

Accepted Answer

FHA Section 203(b) program

Answer

VA Loan Guaranty Program

Answer

USDA Rural Development Loan

Answer

Fannie Mae HomeReady program