QUESTION: 17

Which of the following statements is permissible in an advertisement?

"Current interest rates as low as 3.50% with an APR of 3.99%. Contact us today!"
"Looking for a VA loan? We are endorsed by and affiliated with the VA administration."
"Take out a reverse mortgage loan with us, and you can stay in your home as long as you want and never make a payment."
"Close a mortgage loan with us within the next 60 days and when interest rates drop, we will refinance your loan at a lower rate guaranteed."

Answer(s): A

Reference:

https://www.consumerfinance.gov/rules-policy/regulations/1026/24/

A borrower has told the mortgage loan originator that they had recently paid off an account that was listed on their credit report. Which of the following information will they need to provide the lender to prove the account has been paid off?

Oral confirmation from the borrower
An updated statement showing a zero balance
A letter from the borrower explaining that they paid it off
No additional information required

Answer(s): B

Reference:

https://www.bankrate.com/mortgages/proof-of-funds-letter/

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QUESTION: 19

Which of the following federal laws requires mortgage lenders to adopt and follow anti-money laundering (AML) rules and regulations?

The National Bank Act
The National Currency Act
The Bank Secrecy Act (BSA)
The Real Estate Settlement Procedures Act (RESPA)

Answer(s): C

Reference:

https://financialcrimeacademy.org/aml-compliance-for-mortgage-lenders/

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QUESTION: 20

Prepaid charges include which of the following items?

Origination fee
Credit report fee
Conveyance tax
Per diem interest

Answer(s): D

Reference:

https://www.investopedia.com/terms/p/prepaid-finance-charge.asp

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QUESTION: 17

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QUESTION: 18

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QUESTION: 19

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QUESTION: 20

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