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 Regulation B (ECOA), which of the following is a lender PERMITTED to ask on a mortgage application?
Answer: The applicant's marital status when applying for a joint loan
Regulation B permits asking about marital status (as married, unmarried, or separated) when it is relevant to the creditworthiness evaluation, such as for joint loan applications.
A mortgage loan is classified as a 'High-Cost Mortgage' under HOEPA when which threshold is exceeded?
Answer: The APR exceeds the average prime offer rate by more than 6.5 percentage points for a first-lien loan
Under HOEPA, a first-lien loan is high-cost if its APR exceeds the average prime offer rate (APOR) by more than 6.5 percentage points.
What is the primary purpose of the Nationwide Multistate Licensing System (NMLS)?
Answer: To provide a single system for licensing, registration, and supervision of mortgage professionals
The NMLS is a central registry and licensing platform for mortgage loan originators and companies, enabling state regulators to coordinate supervision.
Under RESPA, which document replaced the HUD-1 Settlement Statement for most residential mortgage closings after October 3, 2015?
Answer: Closing Disclosure
The Closing Disclosure replaced the HUD-1 Settlement Statement for most transactions under the TRID rule effective October 3, 2015.
Which of the following is an example of 'steering' in the mortgage industry?
Answer: Directing a borrower to a higher-cost loan for which they qualify for a lower-cost product in order to earn higher compensation
Steering occurs when an MLO directs a borrower to a loan product that is not in their best interest, typically to earn higher compensation.
An MLO's unique identifier assigned through NMLS must appear on which documents?
Answer: All residential mortgage loan application forms and solicitations
Under the SAFE Act, an MLO's NMLS unique identifier must appear on all residential mortgage loan application forms and any solicitation materials.
Under the Ability-to-Repay (ATR) rule, which factor is a lender required to consider when making a mortgage loan?
Answer: The borrower's current or reasonably expected income and current debt obligations
The ATR rule requires lenders to verify and consider a borrower's income, assets, employment, credit history, and current debt obligations before extending credit.