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Azure Tide Section 13 Exam Questions and Complete Solutions Graded A+
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Azure Tide Section 13 Exam Questions and Complete Solutions Graded A+
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Azure Tide Section 13Exam Questions and
Complete Solutions
Graded A+
The Real Estate Settlement Procedures Act (RESPA) requires that prospective buyers get a special
information booklet within three business days of submitting a loan application information on closing
costs to be given to loan applicant. - Answer: True
Disintermediation is the normal flow of money into financial institutions from the public in the form of
deposits. - Answer: False
Intermediation is the normal flow of money into financial institutions from the public in the form of
deposits. Disintermediation occurs when depositors take their money out of financial institutions
because they can earn more money in other investments.
Because an applicant needs to be able to prove that they can pay a mortgage payment for the entire life
of a loan, lenders are allowed to factor in someone's age when approving or denying them for a loan. -
Answer: False
The Equal Credit Opportunity Act (ECOA) prohibits discrimination in loan under writing on the basis of
sex, marital status, race, religion, age, or national origin. Plus it prohibits discriminatory treatment of
income from alimony, child support, public assistance, or part-time employment. And it prohibits inquiry
about, or consideration of, child bearing plans or potential for child bearing.
Straw buyers are people who consent to the use of their names and personal details by companies or
people who will obtain mortgage loans but do not intend to live in the homes. This is considered
mortgage fraud and is illegal. - Answer: True
, To qualify for a Reverse Annuity Mortgage a homeowner must be 62 years old or older and have a
significant amount of equity built up in their house. - Answer: True
A conventional loan is a mortgage loan that is not guaranteed or insured by the government. - Answer:
True
Negative amortization arises when the payment made by the borrower is less than the interest due and
the difference is added to the loan balance. - Answer: True
With an amortized Mortgage, as the loan is paid off, the amount applied to the principal decreases and
the amount applied to the interest increases. - Answer: False
With an amortized Mortgage, as the loan is paid off, the amount applied to the principal increases and
the amount applied to the interest decreases.
All Savings Associations are insured by The National Credit Union Administration (NCUA) - Answer: False
All Savings Associations are insured by the FDIC up to $250,000 per depositor per account.
The Federal Reserve System was established to provide a safer and more stable monetary system and to
influence the availability and cost of money and credit - Answer: True
Which statement is false regarding the Government National Mortgage Market Association (GNMA)?
1) GNMA is part of the primary mortgage market
2) GNMA is a wholly owned government corporation under HUD.
3) The Mortgage-backed securities program provided by GNMA are Pass-Through Securities as GNMA
acting as a GUARANTOR of these securities rather than the actual purchaser or creator of the securities.
4) GNMA provides the full faith and credit guarantee of the U.S. Government. - Answer: GNMA is part of
the primary mortgage market
What is an increase in the discount rate?
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