Prepxl Practice Test 3 Questions and Answers Latest (Verified Answers)
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Prepxl Practice Test 3 Questions and
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$35,900.
The down payment in this scenario will be $35,900. This is just enough to keep them at the
$510,400 conforming loan limit which was adjusted January 1, 2020. 546,300-510,400 =
35,900. - In January of 2020, Wella ...
Prepxl Practice Test 3 Questions and
Answers Latest 2024 - 2025 (Verified
Answers)
$35,900.
The down payment in this scenario will be $35,900. This is just enough to keep them at the
$510,400 conforming loan limit which was adjusted January 1, 2020. 546,300-510,400 =
35,900. - ✔✔In January of 2020, Wella and Kip agreed to purchase a home at a purchase price
of $546,300. They would like to hold onto as much of their savings as they can, but they have
chosen to make a down payment sufficient enough to qualify for a conforming loan. What is the
minimum down payment they can make to reach the conforming loan limit but still retain
savings?
- $47,900
- $35,900
- $95,800
- $54,900
Identify discriminatory lending practices and determine if financial institutions are meeting the
borrowing needs of their communities.
Regulation C pertains to the Home Mortgage Disclosure Act (HMDA). Through the collection of
information about loan applications and settlements, HMDA attempts to identify if companies
are using discriminatory lending practices and to determine if they are meeting the mortgage
lending needs of their communities. - ✔✔What is the primary purpose of the Home Mortgage
Disclosure Act?
- Provide borrowers with a clear explanation of the cost of a loan through disclosure of APR and
finance charges
- Allow a borrower the opportunity to remove PMI from his/her loan
- Identify discriminatory lending practices and determine if financial institutions are meeting the
borrowing needs of their communities
- Use disclosures to help consumers shop for available credit options
No, because the judgments are a result of medical expenses, they will not be held against him.
Evidence that an individual has not shown financial responsibility may include current
outstanding judgments, except those solely as a result of medical expenses. - ✔✔Wilbur Green
is applying for a loan originator license. His credit report indicates that he has a number of
,judgments filed against him, all related to a serious medical condition his wife suffered four
years prior. Will Wilbur be denied a license because of the judgments?
- Yes, current outstanding judgments show a lack of financial responsibility
- Yes, because they indicate a pattern of seriously delinquent accounts within the past three
years
- No, because the judgments are a result of medical expenses, they will not be held against him
- The judgments will not be held against him because they were entered more than three years
ago
Occurs when the mortgage payment is not sufficient to pay the interest currently due.
Negative amortization occurs when a mortgage payment is not sufficient to pay the interest
currently due. - ✔✔Negative amortization:
- Describes the result of a default
- Occurs when the mortgage payment is not sufficient to pay the interest currently due
- Occurs when a borrower pays only interest due each month
- Defers principal
Declarations.
The "Declarations" section of the URLA contains questions which, depending on the applicant's
answer, could result in immediate rejection of the application. - ✔✔Which section of the URLA
contains questions which, depending on the applicant's answer, could result in immediate
rejection of the application?
- Information for Government Monitoring Purposes
- Declarations
- Details of the Transaction
- Acknowledgement and Agreement
Home equity conversion mortgage.
The home equity conversion mortgage (HECM) is the most commonly used of the three forms of
reverse mortgages. - ✔✔The most commonly used type of reverse mortgage is known as a:
, FCRA defines a consumer report as any information from a consumer reporting agency that
relates to a consumer's creditworthiness, credit standing, credit capacity, character, personal
characteristics, or mode of living, used or expected to be used, in order to determine eligibility
for credit or insurance, or to evaluate a consumer for employment. - ✔✔A consumer report is
defined under which of the following federal laws?
- FACTA
- FCRA
- ECOA
- HMDA
A condo complex for residents aged 55 and over.
The sales comparison approach to appraisals is most commonly used for residential properties
within an area that has recent sales data to analyze for comparison. - ✔✔In what scenario
would a sales comparison approach be appropriate?
- A condo complex for residents aged 55 and over
- A bio-dome built in the middle of a residential neighborhood
- A commercial office building in an area zoned commercially
- A complex of office units in a business park near a residential neighborhood
1007.
The 1004 is the Uniform Residential Appraisal Report, or URAR. There are variations for certain
properties; the 1007 is used for single-family properties that are investment properties. -
✔✔Which of the following forms is the appraisal form used for investment properties?
- 1007
- 1073
- 1004
- 1005
Indefinitely.
The FCRA requires that outdated negative financial information remain on a consumer's credit
report no longer than seven years, and for bankruptcies, ten years. However, unpaid liens,
particularly tax liens, can remain for an indefinite period of time. - ✔✔For what length of time
can an unpaid tax lien remain on a credit report?
- Indefinitely
- No more than ten years
- No more than seven years
- No longer than three years after it is paid
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