Question 1

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

Options :

A : The National Bank Act

B : The National Currency Act

C : The Bank Secrecy Act

D : The Real Estate Settlement Procedures Act

Answer: C

Question 2

Which of the following factors is considered when determining the interest rate for a subprime mortgage?

Options :

A : The term of the loan

B : The property location

C : The sales price of the property

D : The credit score of the applicants]

Answer: D

Question 3

Which of the following circumstances may indicate fraud with respect to the assets a borrower will use for closing?

Options :

A : Bank deposits that are not supported by income or other disclosures

B : Disclosure of gift funds

C : Parental loans disclosed but not yet received

D : Borrower-s receipt of a large bonus from an employer

Answer: A

Question 4

Which of the following acts requires mortgage loan originators to complete annual continuing education to satisfy the requirement for licensure?

Options :

A : The SAFE Act

B : The Dodd-Frank Act

C : The Truth in Lending Act (TILA)

D : The Equal Credit Opportunity Act

Answer: A

Question 5

Which of the following items is a liquid asset?

Options :

A : Antique jewelry

B : Publicly traded stocks

C : Net worth of a business

D : An automobile owned free and clear

Answer: B

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