Prepxl - Study guides, Class notes & Summaries

Prepxl Practice Test 8: Exam Review Questions and answers, rated A+ ACME Home Loans is a private lender with a strict policy of limiting originations to conventional qualified mortgages with minimum loan amounts of $300,000. To ensure compliance with this policy, loan originators are instructed to refuse to accept applications from consumers who want loan amounts of less than $300,000, or who have debt-to-income ratios of 44% or more. This policy is: - Not a violation of any federal fa...

Prepxl practice test 2: Questions and answers, rated A+ Under RESPA, the servicer may require a borrower to pay into an escrow account to cover disbursements that are unanticipated or disbursements made before the borrower's monthly payments are available in the account, a cushion or reserve that must be no greater than _____ of the estimated total annual disbursements from the escrow account. - One half - One third - One sixth - One twelfth - -One sixth. Under RESPA, a lender ma...

Prepxl Practice Test 3: Exam Review Questions and answers/ 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 - -$35,900. The down p...

Prepxl Practice Test 6: Questions and answers, rated A+ Cindy bought a home and closed on a 6.0% rate for 30 years. The loan includes a payment feature that allows Cindy to make a $1,400/month payment for the first five years, and a $1,800/month payment for the remainder of the loan. What type of loan is this? - Variable - ARM - Option ARM - Fixed rate - -Fixed rate. This loan is a fixed-rate loan (at 6% for 30 years). The payment example shows an interest-only feature for the fir...

PrepxL Exam Review Questions and answers, rated A+ Which of the following statements about the Loan Estimate is NOT true? a. The lender is solely responsible for providing the Loan Estimate to the prospective borrower b. The Loan Estimate need not be provided if the borrower is seeking a refinance of an existing loan c. The Loan Estimate is not a loan guarantee d. The Loan Estimate must be provided to the applicant no more than three business days after submission of the application - -...

PREPXL - Mortgage Loan Origination Activities: Exam Questions and answers/ Which of the following would not be found on the promissory note? Interest rate Loan terms Borrower name Legal description - -Legal description The acronym CHARM refers to which of the following? A disclosure law requiring the APR to be disclosed on balloon programs A booklet which must be given to a borrower applying for an adjustable-rate loan A booklet describing the Loan Estimate A disclosure requirement...

PREPXL- General Mortgage knowledge: Questions and answers, rated A+ According to the Truth-in-Lending Act, a variation up to what amount is permitted for the annual percentage rate in a regular fixed-rate mortgage transaction as quoted in the Loan Estimate? 1% .5% .125% .25% - -.125% The term "subordination" refers to: The process of releasing a lien The process of recording a lien The process of one lienholder accepting inferior lien priority in favor of another The process of r...

Prepxl Practice Test 7: Questions and answers, rated A+ Which of the following is responsible for determining whether to issue a license approval? - The NMLS - The Governor - The Legislature - The Commissioner - -The Commissioner. The Commissioner or state regulator for financial institutions determines licensing eligibility. A subordinate lien that allows a borrower to pay down principal and continue to make withdrawals is known as: - A reverse mortgage - An ARM - A home equity l...

Prepxl Practice test 4, Questions and answers/ VERIFIED/ If a borrower is required to pay alimony or child support, it must be included as a(n): - Asset - Liability - Qualifier - Mitigating circumstance - -Liability. Alimony and child support must be included in a borrower's liabilities if they are required to pay. A lender who refuses to originate loans in a particular neighborhood or ZIP code because of the perceived creditworthiness of consumers living in the area is in violation...

Prepxl practice test 2: Questions and answers, rated A+ Under RESPA, the servicer may require a borrower to pay into an escrow account to cover disbursements that are unanticipated or disbursements made before the borrower's monthly payments are available in the account, a cushion or reserve that must be no greater than _____ of the estimated total annual disbursements from the escrow account. - One half - One third - One sixth - One twelfth - -One sixth. Under RESPA, a lender ma...