Loan Processor Quiz

1.

How many days do you have to mail initial loan disclosure documents after taking a complete application?
- A.
  
  3 Days
- B.
  
  1 Day
- C.
  
  5 Days
- D.
  
  Must be mailed immediately
Correct Answer
A. 3 Days

Explanation
After taking a complete loan application, the lender is required to mail the initial loan disclosure documents within 3 days. This is in accordance with the federal regulations that aim to provide borrowers with important information about the terms and costs of their loan. By mailing the documents within this timeframe, borrowers have sufficient time to review the information and make informed decisions about their loan.

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2.

Who must receive copies of fee disclosure documentation according to RESPA?
- A.
  
  The loan officer
- B.
  
  Not a requirement
- C.
  
  All Borrowers
- D.
  
  The lender
Correct Answer
C. All Borrowers

Explanation
According to RESPA (Real Estate Settlement Procedures Act), all borrowers must receive copies of fee disclosure documentation. This ensures that all parties involved in the loan transaction are aware of the fees and charges associated with the loan. By providing this information to all borrowers, it promotes transparency and allows them to make informed decisions about the loan.

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3.

You or any licensed employee of the lender may sign documentation for the borrower in the event a signature is missed to ensure timely funding
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
According to the given statement, it is not true that you or any licensed employee of the lender can sign documentation for the borrower in case a signature is missed. This suggests that the lender cannot take such action to ensure timely funding. Therefore, the correct answer is False.

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4.

The__________________ illustrates the contract rate, APR and all fees associated with a specific loan.

Correct Answer
Truth in Lending
Borrowers Authorization
Title Insurance Policy
Appraisal
Home Inspection

Explanation
The Truth in Lending Act requires lenders to provide borrowers with a disclosure statement that outlines the terms and costs of a loan. This statement includes the contract rate, APR (Annual Percentage Rate), and all fees associated with the loan. Borrowers Authorization refers to the borrower's consent for the lender to obtain their credit report and other financial information. Title Insurance Policy is a document that protects the lender and borrower against any potential issues with the property's title. Appraisal is the process of determining the value of the property, which is important for the lender to assess the loan amount. Home Inspection is a thorough examination of the property's condition, which helps the buyer make an informed decision and may affect the loan terms.

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5.

Please explain in detail when a loan application is considered complete.
6.

The Lenders Good Faith Estimate does not have to be sent to the borrower in all circumstances
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
The Lenders Good Faith Estimate is a document that provides an estimate of the fees and costs associated with a mortgage loan. According to the Real Estate Settlement Procedures Act (RESPA), lenders are required to provide borrowers with a Good Faith Estimate within three business days of receiving a loan application. This ensures that borrowers have access to important information about the loan terms and costs. Therefore, the statement that the Good Faith Estimate does not have to be sent to the borrower in all circumstances is false.

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7.

What document MUST be signed in order to pull a borrowers credit report when taking an application in person?
- A.
  
  Truth in Lending
- B.
  
  Borrowers Authorization
- C.
  
  Credit Score Notification Summary
- D.
  
  Right to Receive a Copy of Appraisal Notice
- E.
  
  None of the above
Correct Answer
B. Borrowers Authorization

Explanation
The Borrowers Authorization must be signed in order to pull a borrower's credit report when taking an application in person. This document grants permission to the lender to access the borrower's credit information and is necessary to comply with privacy and data protection regulations. Without the borrower's authorization, the lender cannot legally obtain their credit report. The other options listed, such as Truth in Lending, Credit Score Notification Summary, and Right to Receive a Copy of Appraisal Notice, are not directly related to the process of pulling a credit report.

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8.

The Truth and Lending and Good Faith Estimate are exact figures of the borrowers loan cost.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
The Truth in Lending Act requires lenders to disclose the total cost of borrowing, including the annual percentage rate (APR) and other fees. The Good Faith Estimate, on the other hand, is an estimate provided by the lender that outlines the expected costs and terms of the loan. These documents are not exact figures of the borrower's loan cost, but rather provide an estimate or disclosure of the costs involved. Therefore, the statement is false.

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9.

A borrowers under certain circumstance may receive more than one Good Faith Estimate
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Under certain circumstances, borrowers may receive more than one Good Faith Estimate (GFE). This could happen if there are significant changes to the loan terms or if the borrower requests a new GFE. The GFE is an estimate of the costs associated with obtaining a mortgage loan, and it is provided by lenders to borrowers. If there are changes in the loan terms, such as the interest rate or loan amount, a new GFE may be issued to reflect these changes. Additionally, if the borrower requests a new GFE, the lender is obligated to provide it. Therefore, it is true that borrowers may receive more than one GFE in certain situations.

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10.

When receiving a copy of the Appraisal Report what 3 items must be present in order for the appraisal to be valid?

Loan Processor Quiz

How many days do you have to mail initial loan disclosure documents after taking a complete application?

Who must receive copies of fee disclosure documentation according to RESPA?

You or any licensed employee of the lender may sign documentation for the borrower in the event a signature is missed to ensure timely funding

The__________________ illustrates the contract rate, APR and all fees associated with a specific loan.

Please explain in detail when a loan application is considered complete.

The Lenders Good Faith Estimate does not have to be sent to the borrower in all circumstances

What document MUST be signed in order to pull a borrowers credit report when taking an application in person?

The Truth and Lending and Good Faith Estimate are exact figures of the borrowers loan cost.

A borrowers under certain circumstance may receive more than one Good Faith Estimate

When receiving a copy of the Appraisal Report what 3 items must be present in order for the appraisal to be valid?