Forensic Mortgage Examiners Course

Forensic Mortgage Examiners Course

Professional examination for home loan course for accuracy and violation purposes

published on January 20, 20111 response 0

What is a Arm?

Adjustable Rate Mortgage
Variable Rate Mortgage
None of the above

What is TILA?

Loan Document
Truth in Lending Act
Truth In Lending Action

What is RESPA?

Recorded Estate Settlement Act
Real Estate Settlement Procedure Act
Real Property Settlement Procedure Office
Loan Document

What is a 1003?

Loan Application
Client financial form
A government issued document
None of the above

What is a HUD-1?

Housing Development Form
Housing Urban Development Loan Document
Final Transaction Document
None of the above

Where is the APR located?

None of the above

Where can you locate the final interest rate?

Mortgage Deed
Mortgage Note

What is the GFE?

Great Faith Estimate
Good Faith Example
Good Faith Estate
None of the above

What is a Mortgage Deed?

Client end report
Contractual Agreement
Client Home Mortgage
Example of Loan Process
None of the above

What is T-REX form?

Tax lien
Recording for taxes
Verification of client's tax records
Government backed loan

Who is the originator for loans?

Loan Officer
Mortgage Broker
A, B, and C
None of the above

Common mistakes made on loans, would be

Borrower's name
Borrower's Employment
Borrower's Income
Interest Rates
Property Value
No, signatures
All of the above
C and G

Are the Promissory Note and Loan Note the same?

None of the above

What is the principal?

Loan Amount
Loan Amount Borrowed
Loan Amount Plus Interest

The interest owed is calculated against?

The principal balance
Prepayment charges
Purchase Price

Where is the correct principal balance owed located?

HUD-1 Statement
A, C, and D
None of the above

Sub-Prime is


Abusive profit lenders partake in is

Earned Commission
Lender Points
Assessed Based Financing
None of the above

Who would be more likely to receive a sub-prime mortgage?

Middle Class
Urban Communities
A and B are most likely to receive a sub-prime mortgage

What is the most likely reason a homeowner would accept the terms and conditions of a sub-prime mortgage?

Credit Score
Steering by the Mortgage Company
Few choice leads to sense of loss
To scam the lender
A,B, and C
None of the above

What changed the market significantly

Incomes increased
Rise in Property Value
Non-Traditional Lending
None of the above

Definition for a "Alternative" or "Non-Traditional" loan is

interest only
adjustable rate mortgage
hybrid adjustable
a loan with a fixed rate for a period of time followed by a rate increase as often as six months
lending without regard for the borrower's ability to repay
All of the above

Underwriting major issue is

Lack of knowledge
Robo Signer
Teaser rate underwriting
none of the above

Causes of Mortgage Lending Abuse

Rise in Real Estate Values
Reverse Redlining
Rise in Secondary Mortgage Market
Prime and Subprime Mortgages
Tax Reform
None of the above

How is the lender paid

Yield Spread Premium
A and B
None of the above

Can mobile home sellers and home improvement contractors act as mortgage brokers?


How do the sub-prime lenders justify the loans approved?

Credit Score
High Risk Borrowers
Fannie Mae Guidelines
None of the above

What is asset based lending?