Defining When You Have An Application Quiz

Approved & Edited by ProProfs Editorial Team
The editorial team at ProProfs Quizzes consists of a select group of subject experts, trivia writers, and quiz masters who have authored over 10,000 quizzes taken by more than 100 million users. This team includes our in-house seasoned quiz moderators and subject matter experts. Our editorial experts, spread across the world, are rigorously trained using our comprehensive guidelines to ensure that you receive the highest quality quizzes.
Learn about Our Editorial Process
| By Patrick Payne
P
Patrick Payne
Community Contributor
Quizzes Created: 6 | Total Attempts: 6,127
Questions: 10 | Attempts: 690

SettingsSettingsSettings
Application  Quizzes & Trivia

This quiz will test your knowledge about applications.


Questions and Answers
  • 1. 

    It is the policy of Sierra Pacific to encourage all consumers to apply for credit.  We do not discourage any person from applying for a loan.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Sierra Pacific has a policy to encourage all consumers to apply for credit and they do not discourage anyone from applying for a loan. This means that Sierra Pacific is open to considering credit applications from all individuals, without any bias or discrimination. Therefore, the statement is true.

    Rate this question:

  • 2. 

    Sierra Pacific defines a RESPA application as receipt of the following six items:  applicant name, income, SSN, property address, property value estimate, estimated loan amount.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Once these six items are received, early disclosures must be sent within 3 business days of application. We include Saturday as a business day.

    Rate this question:

  • 3. 

    Which of the following is NOT considered an inquiry (vs. an application):

    • A.

      Customer calls to ask about rates for loans in general

    • B.

      Customer gives specific personal information and asks for an opinion on whether they would qualify for a loan

    • C.

      Loan officer describes our general underwriting policies

    • D.

      None of the above

    Correct Answer
    B. Customer gives specific personal information and asks for an opinion on whether they would qualify for a loan
    Explanation
    The customer giving specific personal information and asking for an opinion on whether they would qualify for a loan is not considered an inquiry. This is because an inquiry typically refers to a general question or request for information, while in this case, the customer is seeking a specific opinion based on their personal information.

    Rate this question:

  • 4. 

    If you tell a customer that they would not qualify for a loan based on the verbal information given, you would NOT have to issue a written notice of action taken.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    If you tell a customer that they would not qualify for a loan based on verbal information given, you would still have to issue a written notice of action taken. This is because under the Equal Credit Opportunity Act (ECOA), lenders are required to provide a written notice of adverse action to customers who are denied credit based on certain criteria. Verbal communication alone does not fulfill this requirement, so a written notice must be issued to inform the customer of the decision and the reasons behind it. Therefore, the statement is false.

    Rate this question:

  • 5. 

    The only "permissible purpose" for pulling a credit report is:

    • A.

      You want to check up on your credit, to make sure it is still accurate

    • B.

      A client wants to preview his credit report before deciding to apply for a loan

    • C.

      A prospect has indicated that they want to apply for a loan and has agreed to have his credit report pulled

    • D.

      The client gave you her social security number

    Correct Answer
    C. A prospect has indicated that they want to apply for a loan and has agreed to have his credit report pulled
    Explanation
    The correct answer is that a prospect has indicated that they want to apply for a loan and has agreed to have his credit report pulled. This is the only permissible purpose for pulling a credit report because it is necessary to assess the individual's creditworthiness and determine their eligibility for a loan. Checking up on your own credit or previewing a credit report before applying for a loan are not valid reasons for pulling someone else's credit report. Additionally, obtaining someone's social security number does not justify pulling their credit report without their consent.

    Rate this question:

  • 6. 

    If an application is declined or withdrawn within 3 business day of application, early disclosures do not have to be sent to the applicant.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    If an application is declined or withdrawn within 3 business days of application, early disclosures do not have to be sent to the applicant. This means that if the application is rejected or withdrawn within this timeframe, the lender is not required to provide the applicant with any initial disclosures regarding the terms and conditions of the loan. This is because the application did not progress far enough for these disclosures to be necessary. Therefore, the statement that early disclosures do not have to be sent to the applicant in such cases is true.

    Rate this question:

  • 7. 

    A preapproval request is a request for approval of a loan prior to the identification of a property address.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    A preapproval request is a request made by a borrower to a lender to determine the amount of loan they are eligible for before they have identified a specific property to purchase. This allows the borrower to have a clear understanding of their budget and financial capabilities before starting the property search process. Therefore, the statement that a preapproval request is a request for approval of a loan prior to the identification of a property address is true.

    Rate this question:

  • 8. 

    It is important to be very clear as to whether there is a joint applicant before taking a credit report on that joint applicant.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    It is important to be clear about the presence of a joint applicant before obtaining a credit report on that individual. This is because a joint applicant's credit history can affect the overall creditworthiness of the application. By obtaining a credit report on the joint applicant, lenders can assess their financial standing and determine the risk associated with granting credit. Failing to consider the joint applicant's credit history may lead to incomplete evaluation and potentially result in unfavorable lending decisions. Therefore, it is crucial to ascertain the presence of a joint applicant before accessing their credit report.

    Rate this question:

  • 9. 

    It is important to cancel loans promptly using the date that the client actually withdrew or the date the loanwas declined.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    It is important to cancel loans promptly using the date that the client actually withdrew or the date the loan was declined because timely cancellation ensures that the loan is no longer active and any associated fees or interest charges are stopped. This helps to avoid any unnecessary financial burden on the client and ensures accurate record-keeping for the lender.

    Rate this question:

  • 10. 

    Brokered Out loans must still have an efolder file that includes all information collected from or sent to the applicant; in addition to the information received from the lender.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The statement is true because even though a loan is brokered out, meaning it is originated by a mortgage broker and then sold to a lender, it still requires an efolder file. This file should contain all the information collected from or sent to the applicant, as well as any information received from the lender. This ensures that all the necessary documentation and communication related to the loan is properly recorded and organized.

    Rate this question:

Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 20, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Aug 15, 2013
    Quiz Created by
    Patrick Payne
Back to Top Back to top
Advertisement