Practive Test Essay

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1. Pushing subprime products upon vulnerable or undeserved groups for reasons other than credit quality is __________. a. Steering b. Subprime Lending c. Reverse Redlining d. Contract Knavery 2. In a loan transaction the Mortgagor is the lender. True or False? e. True f. False 3. Which disclosure is not a part of RESPA g. GFE h. Settlement Cost Information Booklet i. HUD-1 j. CHARM Booklet 4. If a state decides not to investigate a MLO, who still has jurisdiction? k. The Consumer Financial Protection Bureau l. The Internal Revenue Service m. The NMLS n. Loan Depot 5. Why is fraud for profit considered a more sophisticated version of mortgage fraud? o. It involves fraud rings and investment advisors p. It involves interstate investors q. It involves real estate agents, appraisers, lenders, and closing agents r. It involves sophisticated investors 6. A loan processor may send out a form to verify the past two years of employment history, gross income, as well as verify the probability of continuing employment. This form is referred to as the: s. VOE t. VOD u. VNE v. JOB 7. Of the following, who must be licensed with the NMLS? w. MLO working out of an FDIC bank x. Processor working at loanDepot y. Processor who is an independent contractor working for loanDepot z. Underwriter working at loanDepot 8. If a lender agrees to subordinate a loan, what has occurred? {. The lender will allow their lien to stay in second position |. The borrower has a late payment reflected on his credit report }. A loan has been paid in full ~. A loan has been approved 9. A veteran is using his entitlements for the first time. What

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