Uniform State Content Flashcards
7 cards from real Mortgage practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Uniform State Content flashcards as text
Under the SAFE Act, which activity requires an individual to be licensed as a mortgage loan originator?
Answer: Taking a residential mortgage loan application and offering or negotiating loan terms
The SAFE Act requires licensure for any individual who takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan.
Which federal law requires lenders to provide borrowers with a Loan Estimate within three business days of receiving a loan application?
Answer: Truth in Lending Act (Regulation Z)
TILA (Regulation Z), as amended by the TRID rule, requires the Loan Estimate be delivered within three business days of application.
A mortgage loan originator who knowingly makes a false statement on a mortgage application could face which consequence under federal law?
Answer: Criminal penalties including fines and up to 30 years imprisonment under 18 U.S.C. § 1014
Under 18 U.S.C. § 1014, making false statements on mortgage applications is a federal crime punishable by fines and up to 30 years in prison.
Which of the following best describes 'net tangible benefit' in the context of mortgage refinancing?
Answer: A demonstrable advantage to the borrower such as lower monthly payments or a shorter loan term
Net tangible benefit requires that a refinance provide a real, measurable advantage to the borrower, which is a key anti-predatory lending standard.
Under ECOA (Equal Credit Opportunity Act), within how many days must a lender notify an applicant of adverse action on a completed credit application?
Answer: 30 calendar days
ECOA requires lenders to notify applicants of adverse action within 30 days of receiving a completed credit application.
Which characteristic is NOT a protected class under the federal Fair Housing Act?
Answer: Income level
Income level is not a federally protected class under the Fair Housing Act; the protected classes include race, color, religion, sex, national origin, familial status, and handicap.
Under RESPA, a mortgage lender is prohibited from paying a fee or 'kickback' to a real estate agent for referring a borrower. This prohibition is found in which section of RESPA?
Answer: Section 8
RESPA Section 8 prohibits kickbacks, fee splits, and unearned fees in connection with federally related mortgage loan settlement services.