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Mortgage Loan Origination Questions 26–30 (page: 7)

Updated On: 10-Feb-2026

How many days before consummation must a borrower receive a revised Loan Estimate?

  1. 4 business days
  2. 5 business days
  3. 7 business days
  4. 10 business days

Answer(s): C


Reference:

https://files.consumerfinance.gov/f/documents/cfpb_ecoa-regulation-b_faqs-covid-19.pdf



In a federally related mortgage loan on a principal dwelling, which of the following parties has the right to rescind the transaction?

  1. Only the borrower who makes the most income
  2. Only the borrower with the majority interest in the transaction
  3. Only the person who will actually occupy the property
  4. Any person who has an ownership interest in the property

Answer(s): D


Reference:

https://www.investopedia.com/terms/r/right_of_rescission.asp



Which of the following components of an ARM adjusts periodically?

  1. Index and margin only
  2. Index and interest rate only
  3. Margin and interest rate only
  4. Margin, Index and interest rate

Answer(s): B


Reference:

https://www.investopedia.com/terms/a/arm.asp



What is the minimum amount of flood insurance a lender must require on a residential building located in a special flood hazard area?

  1. $50,000 for residential property structures
  2. $150,000 for residential property structures
  3. $250,000 for residential property structures
  4. $350,000 for residential property structures

Answer(s): C


Reference:

https://www.policygenius.com/homeowners-insurance/do-i-need-flood-insurance/



When does the Loan Estimate expire?

  1. After the 3rd business day
  2. After the 5th business day
  3. After the 7th business day
  4. After the 10th business day

Answer(s): D


Reference:

https://www.bankersonline.com/qa/disclose-estimated-date-closing-costs-expire



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