Safe Mortgage Loan Originator Test Questions And Answers - National Component With Uniform State Content.

Arm Margin {Ans: -floor of the rate -profit of the loan -can never change during life of loan}Consumer Reporting Agency {Ans: (FCRA) -Can Report negative info up to 7 years -bankruptcy can be reported for 10 years -No time limit on criminal convictions}Verification of Employment {Ans: -Must prove stability of income with 2 years continuous pay and three more years of expected pay -4506-T signed by borrower and sent to IRS to verify borrowers tax returns}Civil Rights Act {Ans: Cant discriminate based on race or color (Act)}High Priced Loans {Ans: Reg Z - 1026.35 -1.5% or more on first lien -3.5% subordinate liens - 0% trigger fee, 1.5% first mortgage, 3.5% second}FHA Loan {Ans: 31/43 DTI -Insures mortgage -all loses covered -MIP cant be dropped -96.5% max LTV}Denial Of License {Ans: -any non-financial felony in the past 7 years -financial felony ever -financial misdemeanor (state decides) -License has been revoked in another state -default on a federal student loan}Form 2106 {Ans: Shows reimbursed expenses, including expense allowances}5/1 Program Arm {Ans: Rates fixed for 5 years then adjust every year after}VA Loan {Ans: Max ratio - 41% -guarantees the loan, pay