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Last Updated: Jul 31, 2026
No. of Questions: 232 Questions & Answers with Testing Engine
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| Section | Objectives |
|---|---|
| Federal Mortgage-Related Laws | - Equal Credit Opportunity Act (ECOA) - Truth in Lending Act (TILA) / Regulation Z - Fair Housing Act - Real Estate Settlement Procedures Act (RESPA) |
| Uniform State Content | - State Lending Regulations Overview - Licensing Requirements and Compliance |
| Ethics and Professional Conduct | - Disclosure Requirements - Fraud Prevention - Consumer Protection Standards |
| General Mortgage Knowledge | - Loan Closing Procedures - Underwriting Basics - Loan Origination Process - Mortgage Types and Products |
1. According to Regulation Z, which of the following is a prohibited act?
A) Including undocumented child support payments made by the borrower
B) Issuing disclosures to applicants
C) Advertising rates not currently available to applicants
D) Redisclosing a Loan Estimate immediately after locking the rate
2. An interest-only mortgage is a mortgage with scheduled payments that require the consumer to have:
A) Fixed payments every month, but the interest rate adjusts monthly.
B) Adjustable payments every month based on an adjustable interest rate.
C) Monthly payments for a specified amount of time that then roll over to principal-only payments because the interest has already been paid.
D) Payments of interest for a specified amount of time.
3. Interest-only mortgages are considered high risk compared to traditional mortgage products because:
A) the borrower's ability to repay is not considered when making the credit decision.
B) scheduled payments do not reduce the loan's principal balance.
C) the interest rate exceeds the average prime offer (APOR) rate by 1.5 percentage points.
D) the interest rate exceeds the APOR by 6.5 percentage points.
4. An easement:
A) is a right to cross or otherwise use someone else's land for a specified purpose.
B) allows a borrower to make less than the required payments without going through a full mortgage modification.
C) allows a loan applicant to close on a loan even if all the stipulations have not been met.
D) is a mortgage modification.
5. Which of the following fees or charges is an allowable closing cost typically found on a Closing Disclosure?
A) Servicing fee
B) Yield-to-loan fee
C) Referral fee
D) Origination charge
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: A | Question # 5 Answer: D |
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