1.

Under the Mortgage Broker Practices Act (MBPA), when may the director of the Department of Financial Institutions have access to all books and records of a m ortgage brokering firm? A. Over the weekend B. During normal business hours C. When the mortgage broker is available D. When the firm is closed to normal business 2. Which document is intended to translate the legalese of the Note and Deed of Trust into understandable terms for comparison-shopping, to understand loan costs, typ e of loan, length of loan, and payment schedule? A. Title document B. Good Faith Estimate (GFE) C. Settlement Statement D. Truth In Lending Disclosure 3. A mortgage broker has determined that those applicants who have a monthly rat io of debt to gross income of 28% or below will be qualified for credit. Among the fol lowing, which applicant will qualify for credit? Description Applicant 1 Applicant 2 Applicant 3 Applicant 4 Monthly Payment $750 $1155 $1150 $3040 Gross Monthly Income $2500 $3300 $4600 $7600 A. Applicant 1 B. Applicant 2 C. Applicant 3 D. Applicant 4 4. According to the Mortgage Broker Practices Act (MBPA), a mortgage broker who intends to sell his or her mortgage business is NOT required to notify the: A. real estate broker B. borrowers C. third-party providers D. Department of Financial Institutions 5. Under the Fair Credit Reporting Act, which of the following organizations hav e assumed a vital role in assembling and evaluating consumer credit? A. Federal Trade Commission B. Consumer reporting agencies C. Committee on Financial Services D. Board of Governors of the Federal Reserve System 2 6. Under the Mortgage Broker Practices Act (MBPA), if a licensed mortgage broker violates two provisions of the Act on three consecutive days, how many distinct violations have occured? A. 1 B. 2 C. 3 D. 6 7. Under the USA Patriot Act, what is the minimum number of years that a mortgag e broker is required to keep customer information after the account is closed? A. 3 B. 4 C. 5 D. 6 8. A mortgage broker or loan originator may NOT tell an appraiser the: A. listed price of a property B. borrower's opinion of value

C. mortgage broker's opinion of value D. value required to close a mortgage loan 9. According to the Truth In Lending Act (TILA), how should an applicant inform the creditor about the decision to rescind? A. Writing to the creditor B. Writing to the loan originator C. Phone call to the loan originator D. By speaking in person to the creditor 10. A person has applied for a mortgage broker license. While the application is being processed, under the Mortgage Broker Practices Act (MBPA), the person is allowed to: A. finalize the location to conduct the business B. advertise the business the applicant plans to start C. originate one Washington residential mortgage loan D. negotiate terms for a Washington residential mortgage loan 11. If the borrower is unable to obtain a loan, what MUST the mortgage broker pr ovide the borrower upon written request? A. The documents paid for by the borrower B. The yield spread premium paid to the mortgage broker by the lender 3 C. Another Good Faith Estimate (GFE) if there are no changes from the initial GFE D. Another Truth in Lending (TIL) statement if there are no changes from the initial GFE 12. Under the Mortgage Broker Practices Act (MBPA), within how many days of receiving money from a borrower for payment of third-party provided services is a mortgage broker required to deposit it into a trust account? A. Within 24 hours B. Within 7 calendar days C. Before the end of the third business day D. Before the end of the fifth business day 13. Within how many days of receiving an application for a mortgage loan must th e mortgage broker provide a Good Faith Estimate (GFE) to the loan applicant? A. 1 B. 3 C. 5 D. 9 14. A mortgage broker provided a 30-year fixed rate loan with an interest rate o f 5.25% for an amount of $150,000. The charges include a mortgage broker fee of $6,500 a nd 4 discount points. What is the APR of the loan program? A. 5.25% B. 5.78% C. 6.04% D. 6.25% 15. According to the Mortgage Broker Practices Act (MBPA), when must a loan originator take an approved continuing education course on ethics? A. First year of licensure B. Second year of licensure C. Third year of licensure D. Fifth year of licensure 16. Under the Fair Housing Act (FHA), which of the following practices is illega l? A. Relegating particular protected classes to predominantly minority

neighborhoods B. Selling a home at a profit C. Giving preference of lodging to club members by a club D. Limiting the maximum number of occupants permitted to occupy a dwelling 4 17. According to the Mortgage Broker Practices Act (MBPA), the mortgage broker i s NOT responsible for paying fees for third-party services when: A. the lender cancels the loan prior to closing B. the mortgage broker did not collect funds from the borrower prior to closing C. there is a written agreement between the third-party provider and the borrowe r D. the loan closes and third-party providers are paid 18. Which of the following is regulated by the Truth In Lending Act (TILA), Regu lation Z? A. Real Estate Listing Services B. Disclosure of cost of credit C. Equal housing opportunities D. Credit for all sections of society 19. Which of the following building uses are residential? A. Bank B. Theater C. Hospital D. A co-op unit 20. Under the Mortgage Broker Practices Act (MBPA), when does a mortgage broker receive a fee from a borrower? A. At the time of signing a brokerage agreement B. Once the borrower obtains the loan from the lender C. Once the mortgage broker has negotiated and obtained a loan with a lender D. When the mortgage broker has obtained a written commitment from a lender for the loan 21. Which of the following statements regarding the Good Faith Estimate (GFE) is CORRECT? A. Discount points are shown on line 902. B. Mortgage broker fees are shown on line 901. C. Estimate can be given before a lender has been obtained. D. Estimate must be given before a property has been identified. 22. An applicant receives the following offers for a $100,000 loan at a fixed in terest rate. Which of the following loans offers the highest APR for the applicant? Loans Loan 1 Loan 2 Loan 3 Loan 4 5 Interest Rates 6.0% 6.25% 6.50% 6.75% Loan Term 30 years 15 years 20 years 25 years Discount Points 5% 4% 2% 1% A. Loan 1 B. Loan 2 C. Loan 3 D. Loan 4 23. A loan originator works for more than one mortgage broker. According to the Mortgage Broker Practices Act (MBPA), while taking a loan application, the loan originator MUST clearly disclose on the application: A. the names of all the mortgage brokers the loan originator represents B. the name of mortgage broker for whom the application will be taken C. the name of the designated mortgage broker of any of the mortgage brokers D. the name of the lender the mortgage broker represents 24. Which statement regarding Private Mortgage Insurance (PMI) disclosure is CORRECT? A. It is required for every type of loan.

B. It is applicable for loans on every type of property. C. It is the same for all loans closed by the same lender. D. It is different for each type of mortgage loan product. 25. According to the Mortgage Broker Practices Act (MBPA), the Director of Finan cial Institutions ensures that the applicant for a mortgage broker license has: A. appointed a designated broker B. provided a vehicle registration number C. provided proof of five years residency in Washington D. created an account to deposit the mortgage broker fees 26. Under the USA Patriot Act, which of the following actions is a mortgage brok er NOT required to take when a person applies for a loan? A. Inform the government about the details of the loan B. Verify the identity of any person seeking to open an loan C. Maintain records of the information used to verify the person's identity D. Determine whether the person appears on any lists of known terrorist organizations 27. Under the Mortgage Broker Practices Act (MBPA), to receive a license from th e department of financial institutions, a designated broker appointee is NOT requi red to: A. show evidence of professional experience 6 B. provide a surety bond to the broker C. undergo a good standing review D. pass a written examination 28. A lender understated the finance charges for a home mortgage. According to t he Truth in Lending Act (TILA), what is the maximum allowable limit for the underst ated amount for finance charges? A. 5 B. 10 C. 50 D. 100 29. Under the Mortgage Broker Practices Act (MBPA), the funds a mortgage broker accepts from a borrower in advance for third-party provider services MUST be dep osited in: A. a trust account B. the escrow account C. department's account D. designated broker's account 30. Although a lender and borrower have not entered into a rate-lock agreement, the lender MUST provide the borrower with: A. discount points B. adjustable rate C. fixed rate D. disclosures 31. According to the Mortgage Broker Practices Act (MBPA), how many years of applicable work experience are required to qualify for a Designated Broker licen se? A. 1 B. 2 C. 3 D. 4 32. The Washington Usury statute applies to: A. agricultural loans

B. commercial loans C. personal loans D. business loans 7 33. An applicant wants to compare 4 loans for $225,000 at a fixed rate for 30 ye ars with different interest rates and varying lender fees as given below. Loans Loan 1 Loan 2 Loan 3 Loan 4 Interest Rates 6% 6.25% 5.75% 6.375% Loan fees $1,200 $1,000 $2,000 $500 Loan points 1 2 4 1 Which loan offer provides the lowest APR for the applicant? A. Loan 1 B. Loan 2 C. Loan 3 D. Loan 4 34. According to the Mortgage Broker Practices Act (MBPA), an applicant is NOT eligible for a loan originator license if the applicant had had a license or sim ilar state statute previously suspended or revoked within how many years of filing the pres ent application? A. 5 B. 7 C. 9 D. 10 35. Under the Consumer Credit Protection Act (Fair Credit Reporting Act), which of the following systems are available to a consumer to notify lenders that the consume r does not wish to receive written offers of credit? A. Processes dictated by law B. State-approved refusal forms C. Recommendations for legislative action D. Toll free numbers to register complaints 36. According to the Mortgage Broker Practices Act (MBPA), when may the Departme nt of Financial Institutions conduct an investigation on a mortgage broker licensee 's business? A. As and when required B. Only after issuing a directive C. One time for each violation D. Before each annual license renewal 37. According to the Truth In Lending Act (TILA), which of the following in an advertisement triggers the need for additional disclosures? A. 5% APR 8 B. Easy payments C. 5% down payment D. Financing available 38. Under the Mortgage Broker Practices Act (MBPA), which of the following documents is NOT required for the renewal of a designated broker license? A. Endorsements from brokers and borrowers the designated broker has serviced B. Report on the total number of closed loans originated by the designated broke r C. Certificate of satisfactory completion of an approved continuing education course D. Report on the total dollar volume of closed loans originated by the designate d

broker 39. Under the Mortgage Broker Practices Act (MBPA), which of the following statements is CORRECT? A. A contract entered by loan originator is binding on the mortgage broker. B. The contract must contain the entire agreement between the mortgage broker, borrower, and lender. C. A lender and mortgage broker must sign a loan broker agreement once the loan documents are completed. D. A contract must be signed by borrower, broker, and lender once the loan is approved by the lender. 40. Under the Escrow Agent Registration Act (EARA), title insurance companies ha ving a valid certificate of authority and title insurance agents having a valid licen se are exempt from: A. serving as a member in the escrow commission B. having a escrow agent license C. paying the cost for investigation when being investigated for violations D. making any disclosures to their clients when carrying out escrow transactions 41. The Annual Percentage Rate (APR) provides a way to compare only the: A. interest rates of different loans B. closing costs of different loans C. lock-in periods of different loans D. percentage costs of different loans 42. According to the Mortgage Broker Practices Act (MBPA), which of the followin g best describes the role of a registered agent? A. Market the company B. Receive service of process 9 C. Defend the company in a law suit D. Represent the company before the Mortgage Broker Commission 43. What recourse does a borrower have if the loan balance has reached the thres hold for removal of private mortgage insurance (PMI)? A. Stop making payments towards PMI B. File a criminal case against the lender C. Call the servicer and request removal of the PMI D. Refinance with a lender who does not require PMI 44. According to the Mortgage Broker Practices Act (MBPA), which information is NOT required to be included in a lock-in agreement? A. Conditions of the agreement B. Down payment amount C. Cost of the agreement D. Rate of interest 45. [This question has been removed from the study guide.] 46. According to the Mortgage Broker Practices Act (MBPA), any advance payments a borrower makes in the form of a check to be deposited in a trust account MUST be made payable to the: A. loan originator B. licensed mortgage broker C. designated broker D. Department of Financial Institutions 47. For a HELOC adjustable rate mortgage, which of the following disclosures is NOT required under Truth in Lending Act (TILA)? A. The statement that the annual percentage rate does not include cost other tha

n interest B. The index used in rate adjustments and source of information about the index C. The frequency of changes in the annual percentage rate D. The projected interest rates for the next 12 months 48. Under the Mortgage Broker Practices Act (MBPA), the Department of Financial Institutions may conduct a good standing review of an applicant who wants to bec ome a: A. consumer loan information provider B. mortgage lender C. registered real estate broker D. exempt mortgage broker 10 49. Which statement is CORRECT regarding a loan application taken over the inter net by a loan originator? A. The loan originator need not be licensed in Washington. B. Disclosures are not required. C. The loan originator must sign and date the application upon receipt. D. Only mortgage brokers are permitted to take applications over the Internet. 50. A mortgage company offers a monthly contest for real estate brokers in which the winner is given an all expense paid holiday trip. Which of the following is in v iolation of the Real Estate Settlement Procedures Act (RESPA)? A. Only the mortgage company violated the Real Estate Settlement Procedures Act (RESPA) B. Only the real estate broker that benefited from the paid holiday violated the Real Estate Settlement Procedures Act (RESPA) C. Both the mortgage company and the real estate broker violated the Real Estate Settlement Procedures Act (RESPA) D. Neither the mortgage company nor the real estate broker violated the Real Estate Settlement Procedures Act (RESPA) 51. According to the Consumer Loan Act (CLA), under what circumstances may inter est be paid in advance when the simple interest method for interest calculation is u sed? A. When a loan is secured by real estate B. If the applicant has a poor credit history C. If the property bought is for commercial purposes D. When the debt to income ratio is not equal to 29/41 52. Which factor do lenders check to find out if the prospective borrower's earn ing power exceeds the demands of the payment schedule? A. Loan size B. Size of debt burden C. Social considerations D. Length of commitment 53. According to the Mortgage Broker Practices Act (MBPA), a mortgage broker lic ensee who is outside the state of Washington is NOT required to: A. have a registered agent in the state of Washington B. license all of their branch offices in Washington C. maintain books and records in Washington D. pay examination fees to the Department of Financial Institutions for examinations outside of Washington 11 54. According to Regulation P implementing the Gramm-Leach-Bliley Act (GLBA), which of the following individuals is entitled to receive privacy notices? A. Consumer

B. The consumer's employer C. A guarantor of a consumer loan D. A person who browses the website of the financial institution 55. According to the Mortgage Broker Practices Act (MBPA), when should a mortgag e broker licensee make a request to consider an independent certified professional 's report instead of the department's examination? A. On the day of the scheduled examination B. Upon receiving the mortgage broker license C. Upon filing the annual report with the department D. Upon receiving the department's notice for the scheduled examination 56. According to the Truth In Lending Act (TILA), how many copies of the right t o rescind notice must be provided to a consumer? A. 1 B. 2 C. 3 D. 4 57. Under the Mortgage Broker Practices Act (MBPA), what percent of the annual assessment fee MUST a mortgage broker pay in addition to the annual assessment f ee if the broker applies for renewing the license after the expiration of the license? A. 25% B. 50% C. 75% D. 100% 58. Within how many days of receiving a loan application MUST an applicant be gi ven disclosures? A. 1 B. 3 C. 5 D. 7 59. Which of the following is an acceptable practice for a mortgage broker? 12 A. Receive mortgage broker fees from the borrower that exceeds the fees disclosed without providing additional disclosures B. Accept fees from a lender based on the interest rate and points on the loan a nd provide disclosure to the borrower C. Require an applicant to take insurance for an amount that exceeds the replacement value of the real estate D. Failure to provide applicants reasonable opportunity to review the loan documents prior to closing 60. Under what circumstances may a lender offer credit exceeding the Washington usury rate? A. If the borrower accepts the interest rate B. If the lender holds a mortgage broker license C. If the lender holds a Consumer Loan license D. If the borrower has a low credit score 61. Which of the following offers by various lenders for a 30-year fixed mortgag e for $100,000 have the lowest APR? A. 7% interest, $0 prepaid finance charges, 4 points B. 7% interest, $3,500 prepaid finance charges, 0 points C. 7% interest, $2,000 prepaid finance charges, 1 point D. 7% interest, $1,500 third-party fees, $1,000 prepaid finance charges, 3 point s

62. According to the Mortgage Broker Practices Act (MBPA), which of the followin g information is required on a loan originator s web site? A. Only the loan originator's name B. The loan originator's name and business location C. The loan originator's name and license number and the names of real estate brokers with whom she or he works D. The loan originator's name, license number, and the license number and name of the mortgage broker represented by the loan originator 63. Under the Home Mortgage Disclosure Act, which of the following loans is secu red by a lien on a dwelling for the purpose of repairing that dwelling? A. Home improvement loan B. Manufactured home loan C. Home-equity line of credit D. Originated home purchase loan 64. If the Department of Financial Institutions hires a specialist to investigat e a mortgage broker, who pays the specialist's fees if a violation is found? 13 A. Mortgage broker licensee B. Designated broker C. Department of Financial Institutions D. Registered agent of the mortgage broker 65. A creditor has a loan ceiling of $500,000 for an applicant. If a married app licant and the spouse apply independently for credit with the same creditor, and both are independently eligible for credit, what should be the maximum loan ceiling on ea ch applic A. $250,000 B. $500,000 C. $750,000 D. $1,000,000 66. According to the Mortgage Broker Practices Act (MBPA), which of the followin g fees paid by a borrower prior to loan closing are NOT deposited in a trust fund? A. Appraisal fees B. Credit report fees C. Mortgage broker fees D. Third-party provider fees 67. A mortgage broker refers clients to a title company. The mortgage broker own s 10% of the title company. The title company performs services and pays the mortgage broker a commission. The title company pays the mortgage broker annual dividends based on the amount of business that was referred to the title company. Which of the followin g statements is CORRECT? A. Only the mortgage broker is in violation of the Real Estate Settlement Procedures Act (RESPA). B. Only the title company is in violation of the Real Estate Settlement Procedur es Act (RESPA). C. Both the mortgage broker and the title company are in violation of the Real Estate Settlement Procedures Act (RESPA). D. Neither the mortgage broker nor the title company are in violation of the Rea l Estate Settlement Procedures Act (RESPA).

68. Under the Mortgage Broker Practices Act (MBPA), which information in the cre dit report submitted for a mortgage refinance application helps in delivery of initi al disclosures? A. Date when credit information was gathered B. Value of property for which refinance is sought C. Name and address of the credit reporting agency D. Name and address of the mortgage broker 14 69. When is a lender NOT required to provide Special Information Booklet to a lo an applicant? A. When the lender is also the mortgage broker B. When the application is received by internet C. When the application is denied within three days D. When the price of the property is below $100,000 70. A mortgage company makes a presentation to the staff of a real estate compan y. Which company is in violation of the Real Estate Settlement Procedures Act (RESP A)? A. Only the mortgage company B. Only the real estate company C. Both are in violation D. Neither are in violation 71. A loan originator has obtained a loan for a borrower at the terms the borrow er requested, but the borrower is hesitant about completing the transaction. Which of the following acts by the loan originator will NOT violate the Mortgage Broker Pract ices Act? A. Inform the borrower that he or she will have to pay the mortgage broker s allowable fee if the loan does not close B. Inform the borrower that the loan originator is going to send the files to an other mortgage broker if the loan does not close C. Inform the borrower that he or she will be sued if the loan does not close on time D. Inform the borrower that he or she will be reported to the major credit burea us if the loan does not close 72. The purpose of obtaining a property appraisal is to: A. decide how much the down payment needs to be B. ensure that the mortgage installments are fair C. determine the market value of the property D. determine how much money can be borrowed 73. According to the Mortgage Broker Practices Act (MBPA), when the information regarding a registered agent changes, within how many days MUST a mortgage broke r file a statement of change with the Department of Financial Institutions? A. 5 B. 10 C. 15 D. 20 15 74. A customer of a mortgage broker would prefer not to have their nonpublic per sonal information made available to a third-party. Under the Gramm-Leach-Bliley Act (GLBA), which of the following choices can they make to ensure this?

A. Opt out B. Require disclosure C. Grant an exception D. Inform a credit reporting agency 75. A mortgage broker offers a mortgage loan which includes taxes and insurance. According to the Mortgage Broker Practices Act (MBPA), which of the following components of the loan is the mortgage broker required to disclose to the borrow er? A. The principal only B. The principal and interest only C. The principal, interest, and taxes only D. The principal, interest, taxes, and insurance 76. According to the Truth In Lending Act (TILA), which of the following fees is excluded from the calculation of the annual percentage rate? A. Notary Fees B. Wire Transfer Fees C. Prepaid Interest D. Mortgage Insurance Premiums 77. Under the Mortgage Broker Practices Act (MBPA), applicants filing for licens es are NOT required to provide information on the identity of: A. owners B. principals C. designated brokers D. independent contractors 78. If a borrower requests a rate-lock agreement, within how many days MUST the mortgage broker deliver the terms of the rate-lock agreement? A. 3 business days including Saturdays B. 3 business days not including Saturdays C. 5 business days including Saturdays D. 5 business days not including Saturdays 16 79. A title company hosts a monthly dinner and reception for mortgage brokers in the community. Which of the following violated the Real Estate Settlement Procedures Act (RESPA)? A. Only the title company violated the Real Estate Settlement Procedures Act (RESPA) B. Only the mortgage brokers violated the Real Estate Settlement Procedures Act (RESPA) C. Both the title company and the mortgage brokers violated the Real Estate Settlement Procedures Act (RESPA) D. Neither the title company nor the mortgage brokers violated the Real Estate Settlement Procedures Act (RESPA) 80. Under the Consumer Loan Act (CLA), which of the following methods computes a total of the interest payable on a loan, the principal balance and any other cha rges and is stated to be the loan amount? A. Add-on method B. Simple Interest method C. Credit calculation method D. Payment and amortization method 81. How can homeowners protect themselves from claims by others against their ne w home? A. By buying an owner's insurance policy B. By keeping the prior homeowner's insurance policy C. By depositing money in an escrow account D. By buying Private Mortgage Insurance (PMI)

82. According to the Mortgage Broker Practices Act (MBPA), a loan originator app licant must provide which of the following documents when applying for a license? A. Proof of surety bond B. Continuing education certificate C. Information to prove identity D. Recommendation letter from a licensed mortgage broker 83. Under the Fair Housing Act (FHA), which of the following options constitutes a form of discrimination? A. Selling a house to the highest bidder B. Refusing to sell a house to corporations C. Refusing to sell a condo to a family with children under 18 D. Refusing to sell a condo to a convicted felon 17 84. When a mortgage broker is found to be violating the Mortgage Broker Practice s Act (MBPA) in a manner that is likely to cause substantial injury to the public, the Department of Financial Institutions will: A. issue an order to stop conducting business B. order a change of designated broker C. refer the licensee to the mortgage broker commission D. cancel the licenses for the branch offices 85. Which of the following actions would NOT be a violation of the Equal Credit Opportunity Act (ECOA) while considering the income of a borrower? A. Discounting income based on marital status B. Not accepting public assistance income in the same manner as other income C. Refusing to consider income because it comes from part-time employment D. Refusing to consider income without seeing documented proof of income 86. Under the Mortgage Broker Practices Act (MBPA), which of the following actio ns by a mortgage broker licensee requires approval from the director of the Department of Financial Institutions? A. Changing the designated broker B. Sharing an office with a licensed real estate broker C. Hiring an accountant as an employee D. Advertising for mortgage broker services on the Internet 87. A mortgage broker pays for title services on behalf of a developer. In retur n, the developer agrees to refer prospective buyers to the mortgage broker. Which of th e following statements about this agreement is CORRECT? A. Only the mortgage broker is in violation of the Real Estate Settlement Procedures Act (RESPA). B. Only the developer is in violation of the Real Estate Settlement Procedures A ct (RESPA). C. Both the mortgage broker and the developer are in violation of the Real Estat e Settlement Procedures Act (RESPA). D. Neither the mortgage broker nor the developer are in violation of the Real Estate Settlement Procedures Act (RESPA). 88. Under the Mortgage Broker Practices Act (MBPA), any interest earned on the t rust account shall be credited to the: A. lender B. borrower C. mortgage broker D. third-party provider

18 89. In the HUD-1, which of the following IS included in section 800? A. Hazard insurance premium B. Appraisal fee C. County property taxes D. Title charges 90. A mortgage broker company shares advertisement space with a title company. T he mortgage broker company pays for the total advertisement space to offset a refer ral from the title company. Which company is in violation of the Real Estate Settlement P rocedur A. The mortgage broker company B. The title company C. Both companies are in violation D. Neither company is in violation 91. According to the Mortgage Broker Practices Act (MBPA), when the mortgage bro ker has a single deposit account to hold trust funds, the mortgage broker MUST maint ain a: A. separate loan originator for each borrower B. separate ledger for each loan application C. report for each loan application D. separate bank account for each borrower 92. The purpose of the Fair Credit Reporting Act (FCRA) is to: A. reduce home insurance costs B. ensure the accuracy of the information in consumer reports C. help consumers receive lower interest rates D. provide consumers with many finance options to choose from 93. According to the Mortgage Broker Practices Act (MBPA), within how many days MUST a licensed mortgage broker inform the Department of Financial Institutions (DFI) when the books and records are relocated? A. 1 day B. 5 days C. 10 days D. 30 days 94. Which of the following acts requires a financial institution to verify the i dentity of any person who intends to open an account with the institution? A. The USA Patriot Act B. Bank Holding Company Act C. The Fair Credit Protection Act 19 D. The Consumer Credit Protection Act 95. According to the Mortgage Broker Practices Act (MBPA), how many approved courses must a designated mortgage broker complete annually to fulfill the conti nuing education requirement? A. 1 B. 2 C. 3 D. 5 96. According to the Truth in Lending Act (TILA), when must the disclosures be generally provided to a credit applicant? A. Before the consummation of the transactions B. At the time of providing the application form C. When a customer requests the information D. Within one week of the consummation of the transactions 97. Under the Mortgage Broker Practices Act (MBPA), which of the following

disclosures is NOT required to be provided by a computer loan information (CLI) provider who charges a separate fee for CLI services? A. That use of the CLI system is not required to obtain a residential mortgage l oan B. That a fee will be charged by the CLI provider for accessing the CLI services C. That the full range of loans available may not be listed on the CLI system D. That lenders accessing the CLI system may charge for loan processing 98. A rate-lock agreement protects the applicant against an increase in: A. rate of interest B. price of property C. mortgage broker fee D. periodic payment amount 99. A title company advertises in a real estate company s publication by paying th e required fees. Which company is in violation of the Real Estate Settlement Proce dures Act (RESPA)? A. The real estate company B. The title company C. Both are in violation D. Neither are in violation 20 100. A licensed mortgage broker hires independent contractor loan originators. T he independent contractor loan originators MUST: A. work from a location with a designated broker B. work from a location with a branch manager C. work from a licensed real estate office D. work from a location with a branch office license 101. Which type of loan documentation ignores the rule that the borrower's debt ratio cannot exceed some specified percent of income? A. No ratio B. Full document C. Stated income stated assets D. Stated income documented assets 102. A mortgage broker licensee ceases to do business in the state of Washington . Under the Mortgage Broker Practices Act (MBPA), which of the following documents MUST a mortgage broker file with the Department of Financial Institutions? A. The annual report and the amendment application B. The resignation letter and the amendment application C. The mortgage broker closure form and the annual report D. The resignation letter and the mortgage broker closure form 103. According to Regulation P implementing the Gramm-Leach-Bliley Act (GLBA), nonpublic personal information can be disclosed by a financial institution to: A. the spouse B. another financial institution C. a consumer reporting agency D. a business partner of the individual taking a loan 104. According to the Mortgage Broker Practices Act (MBPA), which statement abou t the Department of Financial Institutions regarding its examination of a licensee 's business is CORRECT? A. It never will give advance notice to the mortgage broker about the examination. B. It is not required to send a report about the examination to the mortgage broker.

C. It cannot expand the scope of the examination to the branches of the business . D. It will not charge an examination fee when the mortgage broker business is in the state of Washington. 21 105. Which of the following rates must be conspicuously disclosed in an advertis ement for a mortgage loan? A. Period rate B. Contract rate C. Simple interest rate D. Annual Percentage Rate 106. Which of the following properties is considered a multifamily property? A. Hotel B. Farmhouse C. Duplex D. Residential college 107. According to the Real Estate Settlement Procedures Act (RESPA), who bears t he final responsibility for providing a Good Faith Estimate (GFE) if an applicant i s obtaining a loan through a mortgage broker from a lender? A. Lender B. Real estate broker C. Mortgage broker D. Title company 108. According to the Mortgage Broker Practices Act (MBPA), what is the minimum number of months that a mortgage broker must maintain the books and records from the period to which the records relate? A. 20 B. 22 C. 25 D. 28 109. Which statement regarding a HUD-1 settlement statement is CORRECT? A. Separate statements may be prepared for each third-party provider B. Separate statements may be prepared for the borrower and the seller C. Copies of the statement must be provided to each third-party provider D. Copies of the same statement must be issued to the borrower and the seller 110. A creditor has approved a 30-year mortgage for $300,000 at a fixed interest rate of 6%. The creditor also charges the following fees. Fees Amount Loan origination fees $2000 Loan processing fees $350 22 Underwriting fees $450 What is the amount financed for this mortgage? A. $297,200 B. $298,000 C. $302,000 D. $302,800 111. According to the Mortgage Broker Practices Act (MBPA), a subaccount within a trust account is identified by the name of the: A. lender s loan product B. borrower s loan application C. third-party provider s company name D. branch office s location 112. The cost of PMI:

A. decreases as the down payment decreases B. increases as the down payment decreases C. is the same for any type of loan program D. is determined using a pre-selected index 113. According to the Mortgage Broker Practices Act (MBPA), which of the followi ng actions by a mortgage broker does NOT constitute a violation? A. Obtaining property by misrepresentation B. Failing to reconvey title to collateral within 30 days of the loan pay off C. Advertising a rate of interest disclosing the annual percentage rate implied D. Entering into a contract with a borrower to earn commission when no loan is obtained 114. Which of the following tests is the primary criterion for a Credit Scoring System in order to comply with the Equal Credit Opportunity Act (ECOA)? A. Credit test B. Validity test C. System performance test D. System compliance test 115. A mortgage broker licensee fails to renew the license before the date of ex piration. Under the Mortgage Broker Practices Act (MBPA), within how many days must the licensee meet the renewal requirements? A. 15 B. 30 C. 45 23 D. 60 116. What is the primary purpose of the Truth in Lending Act (TILA)? A. To ensure that creditors do not charge high interest rates on credit B. To ensure that the third-party service providers do not charge high fees C. To ensure that applicants have equal opportunity to credit from lenders D. To ensure that creditors provide consumers clear disclosure of the terms of credit 117. A mortgage broker licensee makes a request to the Department of Financial Institutions (DFI) for a new branch office license. Under the Mortgage Broker Pr actices Act (MBPA), which of the following inquiries will the DFI conduct? A. A good standing review of the licensee B. A brief adjudicative proceeding for the request C. An investigation of the request through a third-party D. An interview with the clients of the mortgage broker licensee 118. Which of the following forms is known as form 1003? A. Truth In Lending Disclosure B. Operating Income Statement C. HUD-1 Settlement Statement D. Uniform Residential Loan Application 119. A home owner has taken a $100,000 loan with a 30-year mortgage at 8% fixed interest rate. The annual taxes and insurance for the home is $3000 which will b e paid in equal monthly installment by the home owner. What is the total monthly payment including taxes and insurance (PITI) for the home owner? A. $733.76 B. $916.67 C. $983.76 D. $1233.76 120. According to the Mortgage Broker Practices Act (MBPA), how often MUST the trust account ledger be reconciled? A. Semi-monthly B. Monthly

C. Quarterly D. Annually 24 121. Under the Fair Credit Reporting Act (FCRA), which of the following informat ion is contained in a consumer report? A. An approval of a specific extension of credit by the issuer of a credit card B. A list to be used by its client for direct marketing of goods not involving a n offer of credit C. A report containing information only experiences between the consumer and the person making the report D. A written report by a consumer reporting agency containing information on a consumer's mode of living 122. A mortgage broker licensee surrenders the license to the Department of Fina ncial Institutions informing of his or her intent to sell the broker business. Under t he Mortgage Broker Practices Act (MBPA), what should the licensee submit while surrendering the license? A. Completed annual report B. Pending loan applications C. Most recent credit report D. License amendment application form 123. [This question has been removed from the study guide.] 124. A mortgage broker licensee charges a fee that exceeds the fee initially dis closed to the borrower. According to the Mortgage Broker Practices Act (MBPA), what MUST t he mortgage broker provide the borrower three days prior to the signing of the clos ing documents? A. A copy of the borrower's rights under the Consumer Loan Act B. A redisclosure of the fee including a clear written explanation for the incre ase C. The details of the mortgage broker's trust account including subaccounts D. The details of the mortgage broker's surety bond company and the amount of the bond 125. The creditor has initiated foreclosure on the principal dwelling of a consu mer that was used as a guarantee for a credit. According to the Truth In Lending Act (TIL A), what is the maximum amount of understated finance charge that will be considered as a ccurate disclosure by the creditor? A. 35 B. 50 C. 75 D. 100 126. A licensed mortgage broker has an annual average of seven loan originators representing the mortgage broker. Under the Mortgage Broker Practices Act (MBPA) , 25 what is the minimum dollar amount of the surety bond the mortgage broker must maintain with the director of financial institutions? A. $60,000 B. $50,000 C. $40,000 D. $30,000

127. Under which of the following conditions is a loan for a vacant property cov ered under the Real Estate Settlement Procedures Act (RESPA)? A. A structure will be built within 2 years using the loan proceeds. B. The vacant property must be used for agricultural purposes. C. The loan proceeds must be used to purchase only the vacant property. D. The size of the vacant property must be less than 1 acre. 128. Under the Mortgage Broker Practices Act (MBPA), a licensed mortgage broker may establish branch offices under names that are different from the main office pro vided the names are approved by the director of the Department of Financial Institutions a nd: A. each name is registered to a different mortgage broker B. the designated broker's name is mentioned at each branch C. the branches are located in the same state as the main office D. each branch is clearly identified as a branch of the main office 129. The Truth in Lending Disclosure Statement (TIL) provides the applicant with the: A. time period for repaying the loan amount B. future rates of an adjustable mortgage loan C. credit score in the applicant's consumer report D. future price of the property intended for purchase 130. An applicant compares offers for $225,000 with different interest rates and fees as given below. Description Lender 1 Lender 2 Lender 3 Lender 4 Interest Rates 7% 6.5% 5.75% 6.25% Appraisal Fees $500 $450 $400 $800 Discount Points 1% 2% 4% 3% Term 30 years 30 years 15 years 15 years Which lender offers the least APR for the mortgage? A. Lender 1 B. Lender 2 C. Lender 3 D. Lender 4 26 131. According to the Mortgage Practices Act (MBPA), a loan originator licensee is required to display their license number in the: A. loan applications taken by the loan originator B. mortgage broker's office C. loan originator's office D. mortgage broker's license 132. According to the Private Mortgage Insurance (PMI) disclosure, PMI serves th e purpose of covering the risk of the: A. lender B. borrower C. insurance agent D. third-party provider 133. According to the Mortgage Broker Practices Act (MBPA), which of the followi ng actions by a mortgage broker is a violation of the act? A. Instructing the title company to make correct disclosures B. Providing only an estimate of the fee when actual costs are not available C. Disclosing fees on lines other than 808 through 811 on the HUD-1/1A D. Increasing and redisclosing the initial fees due to reasons unforeseen at the time of initial disclosure 134. According to the Equal Credit Opportunity Act (ECOA), what reason must be g

iven to applicants when they ask why ethnicity information is requested in the loan application? A. To monitor compliance with federal statutes that prohibit creditors from discrimination based on ethnicity B. To ensure distribution of credit based on the proportion of each ethnic group in the country C. To track census data D. To ensure that any one ethnic group does not obtain disproportionate credit from the lenders 135. According to the Mortgage Broker Practices Act (MBPA), a licensed mortgage broker must have a trust account when: A. the loan is closed and funds are disbursed B. an attorney represented the borrower at closing C. escrow provides a final settlement statement to the borrower D. escrow disburses funds to the licensee for the payment of third-party service s 27 136. Which of the following constitutes a thing of value that would violate the Real Estate Settlement Procedures Act (RESPA)? A. A mortgage broker pays a title company for title search service B. A mortgage broker pays an insurance company for mortgage insurance C. A mortgage broker gives a paid vacation to an attorney for title research services D. A mortgage broker gives an airline travel voucher to an attorney for introducing a customer 137. Under the Mortgage Broker Practices Act (MBPA), a person running separate business contracts to perform mortgage brokering services for a licensed mortgag e broker without being treated as an employee is called a(n): A. lender B. licensee C. designated broker D. independent contractor 138. In the HUD-1, which of the following deposits are included under the escrow account deposits? A. Assumption fee B. Flood insurance cost C. Loan origination fee D. Recording cost 139. A lender has determined that those applicants who have a ratio of monthly d ebt to income of 36% or below will be qualified for credit. Among the following, which applicant will qualify for credit? Description Applicant 1 Applicant 2 Applicant 3 Applicant 4 Monthly debt $1280 $2090 $1890 $1440 Gross Monthly Income $3200 $3800 $4200 $4500 A. Applicant 1 B. Applicant 2 C. Applicant 3 D. Applicant 4 140. According to the Mortgage Broker Practices Act (MBPA), who is NOT permitted to deposit fees from the borrower to pay for third-party providers? A. Lender B. Mortgage broker C. Loan originator 28

D. Real estate broker 141. Under the Fair Credit Reporting Act, who is responsible for ensuring that t he reporting of consumers' credit standing and reputation protects the consumer's r ight to privacy? A. Mortgage broker B. Consumer credit counseling agencies C. Credit reporting agencies D. Board of Governors of the Federal Reserve System 142. According to the Mortgage Broker Practices Act (MBPA), the Department of Financial Institutions can deny an application for renewal of a mortgage broker' s license if the mortgage broker: A. contracted with a third-party provider for property appraisals B. changed the designated broker C. did not make a residential mortgage loan under the Consumer Loan Act D. did not provide the Department of Financial Institutions with an annual repor t 143. Which of the following actions constitutes an obligation on the part of the mortgage broker to its customer under the Gramm-Leach-Bliley Act (GLBA)? A. To ensure the customer's personal data is backed up B. To permit customer employers access to the information C. To keep customer's nonpublic personal information confidential D. To protect customer's information from fire and other natural hazards 144. Which of the following actions by a mortgage broker licensee is a violation of the Mortgage Broker Practices Act (MBPA)? A. Using trust funds to pay third-party fees B. Requesting an appraiser to reach a specified value C. Charging discount points on behalf of the lender to reduce the interest rate of a loan D. Not withholding income tax from the independent contractor's fee 145. According to the Truth In Lending Act (TILA), which of the following notice s by the creditor informs the customers about their rights to cancel a loan? A. Good Faith Estimate (GFE) B. Notice of right to rescind C. Servicing disclosure statement D. Affiliated business arrangement disclosure 29 146. Under the Mortgage Broker Practices Act (MBPA), what MUST a mortgage broker do in order to change the information on his or her mortgage broker license? A. By filing an application for a new mortgage broker license B. By filing a license amendment application with the department C. By waiting for the next renewal date and file a request for changes D. By obtaining an interim mortgage broker license till the next renewal date 147. A mortgage broker receives cash from a borrower for third-party provider se rvices. It is a violation of the Mortgage Broker Practices Act (MBPA) if the mortgage br oker does not have which type of account? A. Trust B. Escrow C. Personal D. Business 148. According to the Mortgage Broker Practices Act (MBPA), within how many days of

obtaining a written request from the borrower must a mortgage broker transmit th e appraisal, title report, etc.? A. 2 B. 3 C. 5 D. 6 149. A mortgage broker obtains a loan from a lender for an applicant. According to the Mortgage Brokers Practices Act (MBPA), who is responsible for providing the appl icant with the Good Faith Estimate (GFE)? A. Lender B. Mortgage broker C. Real estate broker D. Registered agent 150. A mortgage broker offers a 30-year fixed rate mortgage for a loan amount of $200,000 at 6% fixed interest. The following fees apply. What is the APR on this loan? Fees Amount Mortgage Broker Fees 1% Appraisal Fee $400 Pest Inspection $300 Recording Fee $50 Underwriting Fees $450 Discount Points 3% Title Insurance $500 30 A. 6.30% B. 6.37% C. 6.41% D. 6.66% 151. A mortgage broker terminates the services of a loan originator. According t o the Mortgage Broker Practices Act (MBPA), who must notify the Department of Financia l Institutions about the termination? A. Loan originator B. Mortgage broker C. Designated mortgage broker D. Registered agent 152. A borrower obtains a fixed rate mortgage that requires Private Mortgage Ins urance (PMI). Under the Private Mortgage Insurance Disclosure, how is the borrower requ ired to pay for the PMI? A. The lender includes PMI in the loan payments. B. The borrower makes the payments directly to the insurance company. C. The insurance company insures the house and mortgage and charges this to the borrower. D. The borrower makes a one-time payment to the insurance company and the remaining payments to the lender. 153. According to the Mortgage Broker Practices Act (MBPA), which of the followi ng documents is proof of the availability of an interest rate offered by a mortgage broker in an advertisement? A. Copy of the lender's rate sheet B. Any lock-in agreement in which the rate was offered C. Copy of any other advertisement that has published the same rate

D. Any closing documents which states a loan was closed at that rate 154. According to the Equal Credit Opportunity Act (ECOA), within how many days of receiving a complete credit application MUST the applicant be informed about the action taken on the credit application? A. 3 B. 7 C. 14 D. 30 155. According to the Mortgage Broker Practices Act (MBPA), which task does a lo an processor perform? 31 A. Obtain information from a borrower B. Negotiate loan terms and rates with a borrower C. Offer advice on various mortgage loans to the borrower D. Take a residential mortgage loan application 156. Which of the following actions will satisfy a lender s obligations with regar d to the Good Faith Estimate (GFE) under the Real Estate Settlement Procedures Act (RESPA )? A. Informing the applicant about the estimate during a meeting at the lender s office B. Instructing the applicant's real estate broker to inform the applicant about the estimate details C. Providing the Good Faith Estimate to the applicant s address on the loan application within three business days D. Informing the applicant by phone about the charges in the Good Faith Estimate 157. Under the Mortgage Broker Practices Act (MBPA), from whom can an applicant applying for a mortgage broker license obtain a surety bond to submit with the application? A. Legal attorney B. Credit union bank C. Insurance company D. Department of Financial Services 158. Which document discloses all moneys paid into escrow? A. Trust account statement B. Good Faith Estimate (GFE) C. Truth in Lending disclosure D. HUD-1 Settlement Statement 159. An applicant receives the following offers for a $100,000 loan at a fixed i nterest rate. Which of the following loans offers the highest APR for the applicant? Loans Loan 1 Loan 2 Loan 3 Loan 4 Interest Rates 6.0% 6.25% 6.50% 6.75% Loan Term 30 years 15 years 20 years 25 years Discount Points 5% 4% 2% 1% Mortgage Broker Fees $2,000 $3,000 $2,000 $3,000 A. Loan 1 B. Loan 2 C. Loan 3 D. Loan 4 32 160. According to the Mortgage Broker Practices Act (MBPA), while taking a loan application, the loan originator must clearly disclose on the application all of the following EXCEPT:

A. the location at which the application is taken B. the real estate broker's license number C. the loan originator license number D. the date the application is taken 161. A lender provides a borrower with an initial amortization schedule for Priv ate Mortgage Insurance (PMI) disclosure at loan closing for a fixed-rate mortgage. T he lender must also provide a written notice stating the: A. loan closing date B. automatic termination date C. loan application date D. rate-lock agreement date 162. Under the Mortgage Broker Practices Act (MBPA), the Director of Financial Institutions can deny an application for a mortgage broker license if the applic ant: A. has had only 4 years residency in Washington B. has only 3 years experience in the loan originator business C. was convicted of a felony 10 years prior to filing the present application D. had a license issued in another state which was suspended within 5 years of filing the present application 163. Under the USA Patriot Act, a mortgage broker is required to verify a custom er's identity in all of the following situations EXCEPT when the customer: A. prepays for third-party services B. makes a wire transfer C. deposits earnest money with a money order D. receives closing costs from the seller 164. Which statement regarding designated mortgage broker licensees is CORRECT according to the Mortgage Broker Practices Act (MBPA)? A. They cannot be a principal in the business of the mortgage broker licensee. B. They can work as designated broker for more than one mortgage broker licensee. C. They cannot contract with third-party providers for real estate appraisal purposes. D. They can hire employees apart from the employees of the mortgage broker licensee. 33 165. A lender has disclosed the annual interest rate for a residential mortgage to an applicant. According to the Truth In Lending Act (TILA), at the time of consumma tion, the lender has to redisclose to the applicant if the annual interest rate is cha nged by: A. 1/16 B. 1/8 C. 1/4 D. 1/2 166. Under the Mortgage Broker Practices Act (MBPA), a Good Faith Estimate (GFE) is generally signed by: A. the lender B. the borrower C. the seller D. the loan originator 167. A rate-lock agreement MUST contain which of the following? A. The time period for which the interest rate is available B. A statement that the lock-in fee paid by the borrower will be refunded if the loan does not close C. A notice that the interest rate offered is lower than rates offered by other

lenders D. The escrow agent's signature 168. Under the Mortgage Broker Practices Act (MBPA), the earliest that a mortgag e broker can claim any compensation from the borrower is when the: A. borrower obtains the loan from the lender on the terms and conditions agreed upon B. mortgage broker has negotiated the terms and conditions of the loan with the lender C. agreement of terms and conditions has been signed D. mortgage broker prepares all the paperwork to be given to the lender 169. The loan fees increase from the initial Good Faith Estimate (GFE). The mort gage broker MUST provide the borrower with: A. redisclosures B. a discount on the fee C. refund of the GFE fee D. additional discount points 34 170. Which of the following is NOT a finance charge? A. Title fee B. Appraisal fee C. Credit report costs D. Origination fee 171. Under the Mortgage Broker Practices Act (MBPA), when must a mortgage broker licensee provide the Director of Financial Institutions with a report of his or her mortgage broker activity? A. Every 6 months B. Every year C. Every 2 years D. Every 5 years 172. Under the Fair Housing Act (FHA), a prospective lender CANNOT ask an applic ant which of the following? A. The nature or severity of a handicap B. The applicant's ability to meet the requirements of ownership C. Whether an applicant is intending to reside in dwelling after it is purchased D. Whether an applicant is intending to rent out the dwelling 173. When a violation of the Mortgage Broker Practices Act (MBPA) has occured, w hich of the following factors is NOT considered when the Department of Financial Inst itutions is assessing liability for the violation? A. Policies and procedures in the business B. Professional training provided to the staff C. System of review for compliance with policies D. Annual loan amount generated by the company 174. The primary purpose of the Equal Credit Opportunity Act (ECOA) is to ensure that: A. every borrower obtains the required credit from lenders B. all borrowers are given equal chance to obtain credit C. low income borrowers are given opportunities to obtain credit D. all lenders have equal opportunities to lend to those seeking credit 175. Under the Mortgage Broker Practices Act (MBPA), a licensed mortgage broker must have one designated broker appointed for: A. each borrower B. the entire company C. every ten loan originators

D. each branch of the company 35 176. Two applicants jointly apply for a loan with a mortgage broker. Which of th e following statements is CORRECT with respect to the Real Estate Settlement Procedures Act (RESPA)? A. The special information booklet must be sent to both applicants. B. The special information booklet must be sent to any one of the two applicants . C. The credit report must be sent to both applicants within one week. D. The credit report must be sent to any one of the two applicants. 177. Under the Mortgage Broker Practices Act (MBPA), when can a person who does not have a license independently contract with a licensed mortgage broker to provide mortgage broker services? A. When the independent contractor has signed a contract with the licensed mortgage broker B. When the licensed mortgage broker and the independent contractor have proof of five years of stay in the state C. When the independent contractor has provided proof of obtaining a surety bond to the licensed mortgage broker D. Under no circumstances 178. When are additional disclosures required to supplement the Truth in Lending Disclosure (TIL) statement? A. When the mortgage broker must pay third-party providers B. When the applicant requests an adjustable mortgage rate loan program C. When the lender charges pre-payment penalties on the loan D. When the loan term is not disclosed 179. A borrower accepted a loan offer of a 20-year fixed mortgage for $250,000 a t 5.75 percent interest with 239 payments of $1755.21 and a final payment of $1746.84. A fee of $500 and 4 points was also charged on the loan. What is the APR for this loan ? A. 6.15% B. 6.28% C. 6.52% D. 6.54% 180. According to the Mortgage Broker Practices Act (MBPA), who can be called a third-party provider? A. Seller B. Borrower C. Escrow agent D. Mortgage broker 36 181. Which of the following actions is the first that a borrower needs to take w hen a mortgage loan servicer is cooperative when the borrower asks for a Private Mortg age Insurance (PMI) cancellation? A. Stop paying the PMI premiums B. Appraise the home's current value C. Ask for a reduction in the PMI premiums D. Ask for a reduction in the interest rate on the mortgage 182. According to the Mortgage Broker Practices Act (MBPA), when a lock-in agreement has NOT been entered into, the mortgage broker must provide the borrow er with a: A. disclosure that the rate and terms are subject to change B. disclosure of the rates offered by other mortgage brokers

C. copy of the contract between the mortgage broker and the loan originator D. copy of the written commitment from the lender on the agreed terms and conditions 183. Following a violation of the Equal Credit Opportunity Act (ECOA), what is t he maximum number of years within which civil action can be taken against a credito r by an applicant? A. 1 B. 2 C. 5 D. 10 184. A third-party receives payment from a mortgage broker for services. Under t he Mortgage Broker Practices Act (MBPA), the payment MUST be from: A. financial services regulation funds B. mutual funds C. real estate trust funds D. trust funds 185. In compliance with the Truth in Lending Act (TILA), which of the following changes can a creditor make to the Annual Percentage Rate in the contract of a r esidential mortgage loan? A. Changes based on a publicly available index that is not in creditor s control B. Changes made only after a written notification to the borrower C. Changes can be made only after obtaining permission from the borrower D. Changes can be made if the borrower defaults any of the payments 37 186. According to the Mortgage Broker Practices Act (MBPA), who is required to h ave a license to engage in residential mortgage broker activities in the state of Wash ington? A. A mortgage broker whose business is subject to audit by Fannie Mae B. An employee of a mortgage broker whose business is subject to audit by Freddie Mac C. A mortgage broker who makes a residential mortgage loan available to a borrower using funds acquired from a lender D. An employee of a mortgage broker conducting business under the Consumer Loan Act 187. When a person submits an application for mortgage loan to a mortgage broker , it is a violation if the mortgage broker: A. obtains a credit report on the applicant B. receives an appraisal report on the property C. verifies the employment details in the form D. receives trust funds without identifying their use 188. Under the Mortgage Broker Practices Act (MBPA), within how many days of receiving a loan application must a mortgage broker provide to the applicant a f ull written disclosure of all costs involved in obtaining a residential mortgage loan? A. 3 business days B. 5 business days C. 5 calendar days D. 7 calendar days 189. Which of the following is exempt from the Washington Usury statute? A. Retail installment contract B. Loan between two individuals C. Secured personal loan D. Unsecured personal loan 190. An applicant wants to compare 4 loans for $225,000 at a fixed rate for 30 y

ears with different interest rates and varying lender fees as given below. Loans Loan 1 Loan 2 Loan 3 Loan 4 Interest Rates 6% 6.25% 5.75% 6.375% Loan fees $1,200 $1,000 $2,000 $500 Loan points 1 2 4 1 Which loan offers the lowest monthly payment? A. Loan 1 38 B. Loan 2 C. Loan 3 D. Loan 4 191. According to the Mortgage Broker Practices Act (MBPA), an applicant is NOT eligible for a loan originator license if he or she has been convicted of any fe lony within how many years of the filing of the present application? A. 5 B. 7 C. 9 D. 10 192. One of the purposes of the Consumer Credit Protection Act (CCPA) is to ensu re that: A. consumers do not take unnecessary loans B. disclosures are provided to consumers C. lenders charge the same interest rate to all consumers D. it prevents consumers from taking multiple loans at the same time 193. According to the Mortgage Broker Practices Act (MBPA), the charges for an investigation payable by a mortgage broker licensee whose business is being inve stigated is determined as a: A. flat fee plus a percent of the annual profit B. percent of the annual profit of the business C. the number of hours multiplied by an hourly rate D. flat fee and the number of hours multiplied by the hourly rate 194. If a down payment is stated in an advertisement for mortgage, which of the following disclosures must be made in order to comply with the Truth In Lending Act (TILA)? A. Terms of repayment of credit B. Mortgage rates of competitors C. All credit options offered by the creditor D. Projected interest rates for the next 12 months 195. According to the Mortgage Broker Practices Act (MBPA), a loan originator's license can be: A. surrendered to the department B. assigned to the loan processor C. franchised by contract to a third-party D. transferred to a licensed mortgage broker 39 196. Which of the following entities would be classified as a third-party servic e provider to a mortgage broker? A. Lender B. Title company C. Loan originator D. Realtor 197. Under the Mortgage Broker Practices Act (MBPA), the director of the Departm ent

of Financial Institutions may review loan files to determine the mortgage broker 's compliance with: A. payment of business and operating taxes B. employee hiring and licensing rules C. federal regulations covering the business of mortgage brokering D. the purpose of understanding business and solicitation practices 198. The Truth in Lending Act (TILA) states the following requirements, EXCEPT: A. decide the interest rate the banks may charge B. provide consumers with rescission rights C. impose limits on home equity lines of credit D. protect consumers against unfair credit billing 199. An applicant accepts an offer of a 25-year fixed rate loan from a lender at an interest rate of 6.5% for an amount of $150,000. The lender charges include a loan origin ation fee of $4500 and 2 discount points. What is the APR of the offer? A. 6.55% B. 6.98% C. 7.06% D. 7.30% 200. According to the Mortgage Broker Practices Act (MBPA), what is a loan origi nator's annual continuing education requirement? A. 2 approved courses B. 3 approved courses C. 6 clock hours D. attend 2 mortgage broker commission meetings 201. Which of the following residences is NOT a "dwelling" for the purposes of H ome Mortgage Disclosure Act? A. A duplex 40 B. Travel trailer C. Apartment building D. A vacation home 202. According to the Mortgage Broker Practices Act (MBPA), continuing education courses may be offered on which of the following topics? A. Banks and trust companies B. Commerical lending practices C. Regulation of money services providers D. Internal audit standards 203. A creditor can retain files that are prohibited by the Equal Credit Opportu nity Act (ECOA) when the information: A. about an applicant was obtained from a legal firm B. about an applicant was obtained from another creditor C. was requested and obtained from a source after 1997 D. was obtained from a consumer reporting agency without creditor requesting it 204. According to the Mortgage Broker Practices Act (MBPA), the fee paid as cash by a borrower for the lock-in agreement is deposited in the: A. Trust account B. Escrow account C. Financial Services Regulation Fund D. Mortgage broker general account 205. A real estate broker has 50% ownership of a mortgage broker. The real estat e broker refers business to the mortgage broker who provides written disclosures to the b orrower

of the business relationship. The written disclosure also makes it clear that th e borrower is not required to use the services of the mortgage broker. Which of the followi ng statements is CORRECT? A. Only the real estate broker is in violation of the Real Estate Settlement Procedures Act (RESPA). B. Only the mortgage broker is in violation of the Real Estate Settlement Procedures Act (RESPA). C. Both the real estate broker and the mortgage broker are in violation of the R eal Estate Settlement Procedures Act (RESPA). D. Neither the real estate broker nor the mortgage broker are in violation of th e Real Estate Settlement Procedures Act (RESPA). 206. Under the Mortgage Broker Practices Act (MBPA), a mortgage broker may ask a n appriaser to provide any of the following EXCEPT: 41 A. Range of value B. Certified Market Analysis (CMA) C. Guaranteed minimum value D. Automated valuation models (AVM) 207. Which of the following statements regarding the Special Information Booklet is CORRECT? A. It can be reproduced in any form. B. It can be part of other larger documents. C. It cannot be translated to other languages. D. It cannot be stamped with the mortgage broker company name. 208. A real estate company accepted flyers from a mortgage company and distribut ed them to prospective buyers during an open house. Which of the following companie s are in violation of the Real Estate Settlement Procedures Act (RESPA)? A. Only the real estate company is in violation B. Only the mortgage company is in violation C. Both the real estate company and the mortgage company are in violation D. Neither the real estate company nor the mortgage company are in violation 209. According to the Consumer Loan Act (CLA), using the simple interest method for interest calculation, what is the maximum amount of days of prepaid interest tha t a licensee may collect at the time of the loan closing? A. 30 B. 45 C. 60 D. 90 210. How do lenders ensure borrowers are capable of repaying loans? A. By giving small, short-term loans B. By ensuring a safe ratio of debt to income C. By giving loans only to first time borrowers D. By charging a higher rate of interest than the market rate 211. According to the Mortgage Broker Practices Act (MBPA), a licensed mortgage broker must transmit a borrower s information to another mortgage broker licensee within how many business days after receiving the borrower's written request? A. 5 B. 10 C. 15 D. 20

42 212. According to Regulation P implementing the Gramm-Leach-Bliley Act (GLBA), t he treatment of which of the following information collected by a financial institu tion is governed by the privacy rule? A. Business information about companies B. Information that is not nonpublic personal data C. Nonpublic personal information about consumers D. Public information about individuals who conduct business transactions 213. According to the Mortgage Broker Practices Act (MBPA), when an independent certified professional examines a mortgage broker business instead of a departme nt examination, the report must be sent to the: A. mortgage broker's bonding company B. Mortgage Broker Commission C. Department of Financial Institutions D. registered real estate agent of the mortgage broker 214. The consumer s right to rescission applies to all of the following EXCEPT: A. residential mortgage transactions B. a transaction involving refinancing of the principal mortgage balance C. a transaction in which an agency of the state is the creditor D. credit that uses the primary dwelling as a guarantee for repayment 215. Under the Mortgage Broker Practices Act (MBPA), when a mortgage broker noti fies the department that the broker wants to close the mortgage broker business, the mortgage broker: A. can assign the mortgage broker license to the owner of the business B. can transfer the mortgage broker license to the designated broker C. can be held liable for any violations of the MBPA D. can claim the unused funds in the trust account 216. The Adjustable Rate Mortgage (ARM) disclosure MUST be provided to a mortgag e loan applicant for compliance with: A. Real Estate Settlement Procedures Act (RESPA) B. Truth In Lending Act (TILA) C. Consumer Protection Act (CPA) D. Equal Credit Opportunity Act (ECOA) 217. Under the Mortgage Broker Practices Act (MBPA), which of the following opti ons is CORRECT regarding third-party services? 43 A. Fees may not be charged in advance B. Fees not used must be returned to the borrower C. A fee of $300 may be charged if the loan is not sanctioned D. An administrative fee of 10% over the third-party fees may be charged 218. Which of the following actions by a mortgage broker is a violation of Real Estate Settlement Procedures Act (RESPA)? A. Providing more than one Good Faith Estimate (GFE) B. Not providing a copy of the GFE to a loan originator C. Disclosing charges in a GFE D. Not disclosing the yield spread premium in a GFE 219. Which of the following amounts found on a settlement statement, paid by a borrower, represents monies to be applied against the purchase price of the prop erty? A. Existing loans B. Earnest money C. Principal amount of the new loan

D. Adjustments for items unpaid by seller 220. According to the Mortgage Broker Practices Act (MBPA), who may bring a laws uit against a borrower for the collection of compensation? A. Loan originator B. Branch manager C. Registered agent D. Mortgage broker 221. Which of the following options constitutes a purpose of the Fair Housing Ac t (FHA)? A. To normalize rents payable by tenants B. To provide housing for all senior citizens C. To prevent discrimination based on disability D. To provide housing for all families with children under 18 222. A mortgage broker licensee is dissatisfied with the quality of service prov ided by a third-party provider. If the mortgage broker wants to dispute the service, withi n how many days of the loan closing must he or she provide the third-party service pro vider with a written report describing the dispute? A. 10 B. 15 C. 30 D. 45 44 223. Which of the following inquiries will NOT violate the Equal Credit Opportun ity Act (ECOA) during the application process for a residential loan? A. The race of the applicant B. The color of the applicant C. The age of the applicant D. The national origin of the applicant 224. The primary purpose of Mortgage Broker Practices Act (MBPA) is to: A. ensure fair practices in the residential rental business B. preserve public confidence in the lending and real estate community C. establish rules of practice and conduct for real estate appraisers D. promote honesty and fair dealing in the sale of commercial real estate 225. A real estate agent receives a $50 restaurant gift certificate from a mortg age broker as a token of appreciation for referring a home buyer to the mortgage broker. Wh ich of the following laws was violated as a result of this transaction? A. Equal Credit Opportunity Act (ECOA) B. Real Estate Settlement Procedures Act (RESPA) C. Fair Credit Reporting Act D. Fair Housing Act 226. Under the Mortgage Broker Practices Act (MBPA), when the lender provides lo ckin arrangement to a mortgage broker, the lender is considered: A. the third-party B. an escrow agent C. the mortgage broker D. an independent contractor 227. How many days prior to closing MUST the settlement services provider make t he HUD-1 available to the borrower? A. 1 B. 5

C. 7 D. 10 228. When an escrow company and a mortgage broker have common ownership and there is a referral from one to the other, what information about the affiliated business arrangement (AfBA) disclosure is required under Real Estate Settlement Procedure s Act (RESPA)? 45 A. The cost of similar services offered by competitors B. A statement that the use of the affiliated service is required C. Names of all escrow providers in the same locality D. A statement that the use of the affiliated service is not required 229. A mortgage broker receives a Directive from the Director of the Department of Financial Institutions to provide a specific loan file. Under the Mortgage Broke r Practices Act (MBPA), which of the following responses is permitted? A. Provide only the documents that do not contain confidential information B. Provide only the loan documents signed by the borrowers C. Provide all documents in the loan file D. Provide no documents from the loan file 230. Which loan documentation type generally allows borrowers to receive the bes t possible rates and programs? A. Full document B. No documentation C. Stated income stated assets D. Stated income documented assets 231. Under the Mortgage Broker Practices Act (MBPA), when there is a change in a mortgage broker licensee s standing with the Washington Secretary of State, within how many business days should the broker notify the Department of Financial Institut ions? A. 5 B. 10 C. 15 D. 20 232. Under the Gramm-Leach-Bliley Act (GLBA), with which of the following organizations may a mortgage broker share a consumer's account information? A. A bank B. A credit card company C. A telemarketing company D. A consumer reporting agency 233. According to the Mortgage Broker Practices Act (MBPA), which of the followi ng actions by a mortgage broker licensee is NOT a violation of the act? A. Adding undisclosed terms to the loan payment B. Refusing to reduce the interest rate after the loan has closed C. Increasing the mortgage broker fee on the day of closing D. Paying the real estate broker a referral fee at loan closing 46 234. According to the Truth In Lending Act (TILA), which of the following fees i s included in the calculation of the annual percentage rate? A. Title insurance B. Recording fees C. Closing agent charges D. Appraisal fee 235. Under the Mortgage Broker Practices Act (MBPA), the amount for the surety b

ond an applicant must provide while applying for a mortgage broker license depends o n the average number of: A. loan originators representing the applicant B. years of experience the applicant has as a loan originator C. principals of the mortgage broker business of the applicant D. employees the applicant will appoint for the mortgage broker business 236. If the final closing costs do not exceed the closing costs in the most rece nt good faith estimate, which of the following is NOT required? A. Prepaid escrowed cost of ownership B. Third-party providers C. Private Mortgage Insurance (PMI) D. Other disclosures 237. According to the Mortgage Broker Practices Act (MBPA), which information in the annual report is exempt from disclosure requirements of the Public Records Act? A. A trade secret as defined in the Uniform Trade Secrets Act B. The total number of closed loans originated in Washington by the mortgage broker C. The total dollar volume of closed loans in Washington originated by the mortgage broker D. A trade secret aggregated with other information to make it not identifiable 238. The Good Faith Estimate (GFE) provides the estimate of the: A. charges likely to be paid at closing B. amount of mortgage broker fees to be paid C. charges likely to be paid for servicing D. amount of credit provided to the borrower 239. Which loan program includes only an appraisal and the borrower's credit sco re? A. No ratio 47 B. No documentation C. Stated income stated assets D. Stated income documented assets 240. A mortgage broker licensee changes his or her registered agent. According t o the Mortgage Broker Practices Act (MBPA), who sends a request to the new agent to ob tain the written consent to the appointment? A. Mortgage broker B. Loan originator C. Mortgage Broker Commission D. Director of Financial Institutions 241. Under the Gramm-Leach-Bliley Act (GLBA), a person is considered a consumer of a financial institution when: A. the person has designated the financial institution as a trustee for a trust B. the person obtains credit from the financial institution for household purpos es C. the person is a beneficiary of an employee benefit plan for which the financi al institution acts as a fiduciary D. the financial institution provides services to another financial institution of which the person is a consumer 242. According to the Mortgage Broker Practices Act (MBPA), the Department of Financial Institutions does NOT charge an investigation fee when: A. the investigation exceeds a period of 45 days

B. the investigation finds that no violation has occurred C. a loan originator works for a mortgage broker licensee D. a mortgage broker works in an office location within the state 243. A mortgage broker offers an adjustable rate mortgage loan. Which of the fol lowing information MUST be disclosed in the same advertisement? A. The expected interest rate for the next 12 months B. The annual percentage rate is subject to change C. The fixed rate interest rate for various time periods D. The actual interest rate for the last 12 months 244. Which of the following properties is considered as a single family property ? A. Hotel B. Mobile home park C. Apartment building D. Residential dwelling of four units 48 245. According to the Real Estate Settlement Procedures Act (RESPA), a Good Fait h Estimate (GFE) MUST contain: A. Annual Percentage Rate B. estimated closing costs C. estimated closing date D. date of application 246. According to the Mortgage Broker Practices Act (MBPA), when a licensed mortgage broker is located out of state, where MUST the business records be kept ? A. At any readily available location B. At the Department of Financial Institutions C. At the office where the loan was originated D. At a bonded storage facility 247. When is a HUD-1A settlement statement provided to a borrower? A. When there is no seller involved B. When the property is outside the state C. When the mortgage broker is not a real estate broker D. When there are no independent contractors involved 248. Which of the following payments is a violation of the Real Estate Settlemen t Procedures Act (RESPA)? A. A mortgage broker pays a fee to determine if a property is located in flood zone B. Two mortgage brokers decide to split the mortgage broker fee from a residential loan transaction C. A title company charges a market fee for examination and evaluation of title evidence D. A mortgage broker accepts a fee for sending its customers to a title company 249. According to the Mortgage Broker Practices Act (MBPA), who MUST authorize t he transfer of funds between a borrower's subaccounts? A. Lender B. Borrower C. Third-party provider D. Designated broker 250. Under the Fair Credit Reporting Act (FCRA), what course of action CANNOT be taken by a victim of identity theft who has submitted a valid police report to a consumer reporting agency? 49 A. Apply for a security freeze B. Request a change of information on the credit report

C. Make a written request to delete the challenged items on the record D. Require the consumer reporting agency to attempt to find the offender 251. According to the Mortgage Broker Practices Act (MBPA), when a registered ag ent resigns, to whom should the agent send the resignation letter? A. Only the Department of Financial Institutions B. Only the designated broker C. The Department of Financial Institutions and the mortgage broker D. The designated broker and the mortgage broker 252. According to the USA Patriot Act, who can decide if an account in a bank is to be closed when the identity of the customer cannot be verified? A. The bank B. Department of Financial Institutions C. Federal Deposit Insurance Corporation D. Office of the Comptroller of the Currency 253. According to the Mortgage Broker Practices Act (MBPA), by which of the following methods can a designated mortgage broker earn credits for continuing education courses? A. Taking the same approved course twice in the same year B. Carrying over excess credits to the next year C. Teaching a continuing education course D. Working as licensed loan originator 254. According to the Truth In Lending Act (TILA), which of the following disclo sures must be the most conspicuous in the Good Faith Estimate (GFE) provided to credit applicants? A. Legal fees B. Title search fees C. Terms of credit and annual percentage rates D. Creditor s relationship with settlement service providers 255. If an employee of a licensed mortgage broker violates any provision of the Mortgage Broker Practices Act (MBPA) in a mortgage loan transaction, who will NOT be held responsible for the violation? A. The lender B. The employee C. The loan originator 50 D. The licensed mortgage broker 256. A rate-lock agreement becomes INVALID if: A. the borrower shops for loans with other lenders B. the borrower does not purchase discount points C. the settlement takes place after the specified time D. the property the borrower wants to buy has no insurance 257. Within how many business days after receipt of a residential mortgage loan application MUST a mortgage broker provide the federal Truth In Lending Act (TIL A) to an applicant? A. 1 B. 3 C. 5 D. 7 258. The purpose of the Washington State Usury Act is to prevent: A. mortgage brokers from imposing high fees B. lenders from issuing loans without full disclosure C. lenders from charging burdensome interest rates D. third-party service providers from charging high fees 259. Which of the following is CORRECT about Freddie Mac? A. Freddie Mac is a government agency.

B. Freddie Mac makes loans directly to homebuyers. C. Freddie Mac buys mortgages from homebuyers approved lenders. D. Freddie Mac is a primary market conduit between mortgage lenders and investors. 260. Under the Mortgage Broker Practices Act (MBPA), a mortgage broker licensee must file a mortgage broker closure form with the Department of Financial Institution s when he or she intends to: A. sell the business B. close a mortgage loan C. renew the mortgage broker license D. terminate the services of the designated broker 261. Which of the following organizations is responsible for enforcing the regul ations specified within the Gramm-Leach-Bliley Act (GLBA)? A. The borrower 51 B. The lender C. State authorities D. Gramm-Leach-Bliley Safeguard Team 262. According to the Mortgage Broker Practices Act (MBPA), the department may c arry out more than one examination during the first 5 years of a mortgage broker's bu siness if: A. violations were found during the first examination B. there is a claim on the mortgage broker's surety bond C. there is more than 10 mortgage loans pending for closing D. the designated broker has filed for personal bankruptcy 263. A creditor is advertising the annual percentage rate for a 30-year mortgage . According to the Truth In Lending Act (TILA), what is the maximum allowable chan ge on the advertised rate from the actual rate offered to customers? A. 0% B. 0.25% C. 0.50% D. 0.75% 264. Under the Mortgage Broker Practices Act (MBPA), a mortgage broker must prov ide proof of financial security to obtain a mortgage broker license in the form of: A. a surety bond B. a fidelity bond C. a certificate of deposit D. an irrevocable letter of credit 265. Which of the following mortgage transactions is covered under the Real Esta te Settlement Procedures Act (RESPA)? A. Residential B. Business C. Commercial D. Agricultural 266. Under the Mortgage Broker Practices Act (MBPA), after a licensed mortgage b roker has applied to the director for authority to establish branch offices, when does the Director of the Department of Financial Institutions issue a duplicate license f or each branch office? A. When the applicant has paid all fines due by the applicant

B. When the applicant is in good standing with the department C. When the original license has been misplaced by the applicant 52 D. When each duplicate license is to be displayed in the office for which it is issued 267. The Truth in Lending Disclosure Statement (TIL) provided applicants does NO T provide the: A. annual percentage rate of the loan B. amount of appraisal fee C. monthly payments to be made D. amount financed 268. An applicant accepts a fixed-rate mortgage from a lender for an amount of $ 265,000 at an interest rate of 7.25% for a term of 30 years. What is the monthly payment to be made by the applicant? A. $1,763.05 B. $1,807.77 C. $1,898.49 D. $2,094.50 269. According to the Mortgage Broker Practices Act (MBPA), which of the followi ng documents is NOT part of the books and records keeping requirements in connectio n with trust accounts? A. Deposit register B. Copies of deposit receipts C. Copies of third-party provider licenses D. Record of payments to third-party providers 270. The premium paid by the borrower for Private Mortgage Insurance (PMI) is: A. regained by the lender as part of the processing fee B. added to the borrower's monthly mortgage payment C. split between the lender and the mortgage broker D. returned to the insurance company at the cancellation of the PMI 271. If courses for the continuing education requirement for designated brokers are available outside the state of Washington, who has the power to approve the cour ses? A. Code Reviser B. Department of Licensing C. Mortgage Broker Commission D. Director of Financial Institutions 53 272. According to the Equal Credit Opportunity Act (ECOA), when a creditor evalu ates the creditworthiness of a loan applicant, it is a violation to inquire about the applicant's: A. marital status if the applicant's spouse's income is used to determine creditworthiness B. race to ensure that people of all races are given credit in proportion to the ir numbers in the total population C. income from public assistance program to determine the amount and probable continuance of income levels D. immigration status to determine the creditor's rights and remedies regarding repayment 273. A mortgage broker licensee applies for a license renewal ten days after exp iration. Under the Mortgage Broker Practices Act (MBPA), what percent of the annual

assessment fee must the licensee pay in addition to the annual assessment fee fo r the renewal? A. 25% B. 50% C. 75% D. 100% 274. For which of the following types of loan does the Truth in Lending Act (TIL A) apply? A. Agricultural B. Commercial C. Residential D. Business 275. Under the Mortgage Broker Practices Act (MBPA), within how many days of receiving an application that requires a determination of good standing will the department notify an applicant if the applicant failed to meet the department's good standing requirement? A. 5 B. 10 C. 15 D. 30 276. Which statement regarding a loan application submitted by a loan applicant to a mortgage broker is NOT CORRECT? A. It can be used to obtain a prequalification for a loan. B. It can be used to change a loan program from fixed rate to variable rate. C. It can be used to provide an estimate of fees and costs for a loan. D. It can be used instead of other disclosures. 54 277. A title company makes a lump sum payment for a dinner hosted by the mortgag e broker but does not provide any advertisement material for the event. The mortga ge broker refers business to the title company. Which of the following violated the Real Estate Settlement Procedures Act (RESPA)? A. Only the title company B. Only the mortgage broker C. Both the title company and the mortgage broker D. Neither the title company nor the mortgage broker 278. Under the Consumer Loan Act (CLA), using the add-on method, which of the following components are precomputed and stated as the loan amount? A. Interest payable, other allowable charges only B. Interest payable, loan principal balance only C. Interest payable, loan principal balance, and any other allowable charges D. Interest payable on loan, principal balance, and interest on principal balanc e 279. [This question has been removed from the study guide.] 280. Under the Mortgage Broker Practices Act (MBPA), when is a loan originator required to file a license amendment application form with the Department of Fin ancial Institutions? A. Renewing the loan originator license B. Surrendering the loan originator license C. Changing information on the loan originator license D. Changing the loan originator license to a mortgage broker license 281. Under the Gramm-Leach-Bliley Act (GLBA), establishing administrative, techn ical,

and physical safeguards helps a mortgage broker maintain client records and info rmation by: A. keeping the customer data regularly updated B. ensuring the customers have access to their records C. protecting against unauthorized access to such records D. permitting the financial institution to retrieve the records instantly 282. According to the Mortgage Broker Practices Act (MBPA), discount points may be payable only to the: A. lender B. appraiser C. borrower D. loan originator 55 283. Which of the following activities can the creditor initiate until the custo mer s right to rescind expires? A. Transfer funds from the customer's account B. Charge service fees for a settlement services C. Charge interest on the loan amount D. Change the amount disbursed in an escrow account 284. Under the Mortgage Broker Practices Act (MBPA), for how many months is a mortgage broker license valid? A. 6 B. 12 C. 18 D. 24 285. Which of the following records is NOT in a trust account register? A. Deposits to and disbursements from the trust account B. Interest rates offered to various borrowers C. Names and address of the third-party providers D. Names and address of all the borrowers with trust funds 286. Under the Mortgage Broker Practices Act (MBPA), if an applicant is unable t o obtain a loan, how is the applicant required to make a request for copies of the appraisal, title report, credit report, etc. if he or she has paid for them? A. In writing B. Verbally in person C. Through an attorney D. Verbally over the telephone 287. A mortgage broker discloses third-party charges in a Good Faith Estimate (G FE) using the typical charges of the third-party provider. Which of the following mu st the mortgage broker provide in the GFE? A. Relationship between the provider and the broker B. Name and address of the provider C. License number of the provider D. Estimated charges of the provider 288. The amount financed for a 30-year fixed rate loan is $178,000. If the amoun t paid in discount points is 1 and the loan origination fee is $1000, what is the principa l of the loan? 56 A. $177,972 B. $179,100 C. $180,780

D. $181,100 289. A loan originator's license has expired. According to the Mortgage Broker P ractices Act (MBPA), who is allowed to complete the loan originator's loans? A. The loan originator B. The Department of Financial Institutions C. The licensed mortgage broker D. Any licensed loan originator 290. Which information is NOT provided in a Private Mortgage Insurance (PMI) disclosure? A. Person responsible for paying the costs of the mortgage insurance B. Purpose for which insurance is required for the mortgage C. Method of disclosing the costs of the mortgage insurance D. Penalties for failing to obtain mortgage insurance 291. According to the Mortgage Broker Practices Act (MBPA), when MUST a mortgage broker refund any trust funds paid by the borrower, even if the funds have alrea dy been used to pay the third-party providers? A. When there is an increase in the mortgage broker fee B. When the borrower did not receive the required disclosures C. When the mortgage broker is not able to complete a loan for a borrower D. When a break down of loan fees is not provided in the Good Faith Estimate (GFE) 292. If an applicant chooses not to disclose his or her race in a residential lo an application, what action must the broker or loan originator take? A. Inform the applicant that the race information is mandatory in order to complete the application process B. Inform the applicant that the loan application is rejected on the grounds of incomplete information in the application C. Note that the applicant does not wish to disclose race and write down race based on visual observation D. Give the applicant 30 days to review the decision not to disclose race, and d o not make an adverse action decision during this period 293. According to the Mortgage Broker Practices Act (MBPA), what are NOT considered trust funds? 57 A. Funds belonging to the licensee to establish the account B. Funds from borrowers deposited into the account C. Funds received from the borrower for a lock-in agreement D. Funds received from escrow for the payment of third-party services 294. A lender instructs the borrowers of residential loans to employ an attorney to perform title searches related to the settlement services. The attorney has an a greement with the lender to provide legal services to the lender free of cost. Which of t he following statements is CORRECT? A. The lender is in violation of the Real Estate Settlement Procedures Act (RESPA). B. The attorney is in violation of the Real Estate Settlement Procedures Act (RESPA). C. Both are in violation of the Real Estate Settlement Procedures Act (RESPA). D. Both are not in violation of the Real Estate Settlement Procedures Act (RESPA). 295. Under the Mortgage Broker Practices Act (MBPA), in whose name is a loan clo sed that is 'table-funded'? A. Loan originator

B. Independent contractor C. Mortgage broker licensee D. Designated mortgage broker 296. Which of the following is NOT included in the HUD-1 settlement statement? A. Title charges B. Property price C. Down payment D. Housing Expense Ratio 297. A mortgage company advertises on a real estate agent s website by paying the required fees. Which company is in violation of the Real Estate Settlement Proce dures Act (RESPA)? A. The mortgage broker B. The real estate agent C. Both are in violation D. Neither are in violation 298. A mortgage broker hired loan originators who work from their homes. The loa n originators' home offices must comply with all of the following EXCEPT: A. be located in the same city as the mortgage broker's main office 58 B. maintain compliance with bookkeeping requirements C. be licensed as the mortgage broker's branch office D. provide the loan originator's license number 299. A lender provides a borrower with an initial amortization schedule for Priv ate Mortgage Insurance (PMI) disclosure at loan closing for an adjustable-rate mortg age. The lender MUST also provide a written notice stating the: A. borrower's right to refuse a PMI B. borrower's right to cancel PMI C. lender's right to extend the time for monthly payments for a PMI D. lender's right to increase the monthly payment amount for a PMI 300. According to the Mortgage Broker Practices Act (MBPA), the Director of Fina ncial Institutions can deny an application for a mortgage broker license if the applic ant was involved in a case of financial dishonesty prior to how many years of filing the application? A. 7 B. 9 C. 10 D. 15 301. Which of the following provisions of the USA Patriot Act eliminates the con sumer reporting agency's liability under the law, on the condition that the agency pro vided the information in good faith? A. Safe harbor B. Confidentiality C. Rule of construction D. Form of certification 302. A mortgage broker applies for a new branch office license. According to the Mortgage Broker Practices Act (MBPA), the licensee may be required to increase: A. the funds in the trust account B. the amount of the surety bond C. the charges for third-party services D. the charges for mortgage broker services 303. Under the Truth In Lending Act (TILA), which of the following computational tools

can be used to accurately determine the annual percentage rate? A. Lender s proprietary annual percentage rate table B. Regulation Z annual percentage table C. Interest rate computational tools certified by the lenders association 59 D. Interest rate calculators offered by lenders that are available on the intern et 304. Under the Mortgage Broker Practices Act (MBPA), to activate a loan originat or license a mortgage broker must provide to the department of financial institutio ns: A. an agreement signed with the loan originator specifying the loan originator services B. proof of having obtained a surety bond for the amount of the mortgage loan C. the identity of the loan originator the mortgage broker will be working with D. the identity of the lenders the loan originator will be working with 305. When a loan applicant is offered a float-down rate lock agreement, the appl icant can: A. receive a longer locked-in period for a rate B. receive a lower rate than the locked-in rate C. reduce the down payment amount for the loan D. change the loan program from fixed to variable rate 306. Under the Mortgage Broker Practices Act (MBPA), what action is a mortgage broker allowed to take if he or she has received a written agreement from a lend er for a loan, but the borrower fails to close the loan through no fault of the mortgage broker? A. File a lien against the borrower's property B. Charge the borrower a fee not exceeding three hundred dollars C. Charge the borrower actual costs incurred by the mortgage broker D. Charge both borrower and lender an equal amount totaling three hundred dollars 307. The Good Faith Estimate (GFE) states that the charges provided in the estim ate: A. are subject to change B. will not change until the closing date C. are not subject to Mortgage Brokers Practices Act (MBPA) D. will be invalid if the borrower files loan application with other lenders 308. A mortgage broker has disclosed the following fees to an applicant for a 30 year fixed rate loan for $200,000 with an interest rate of 6%. What is the APR on thi s loan? Fees Amount Mortgage Broker Fees 2% Appraisal Fees $300 Credit Report Fees $20 Processing Fees $400 Underwriting Fees $500 60 Recording Fees $30 Escrow Fees $250 A. 6.16% B. 6.25% C. 6.26% D. 6.62% 309. A borrower chooses to not close a loan. According to the Mortgage Broker Pr actices Act (MBPA), the mortgage broker may charge the borrower a fee for services rende red

when the: A. mortgage broker and a third-party service provider are in dispute B. mortgage broker has obtained a written commitment from a lender containing the terms and conditions agreed to by the borrower C. mortgage broker changed the adjustable rate mortgage to fixed rate D. borrower did not use the third-party providers suggested by the mortgage broker 310. Assuming that a borrower has a good payment record on a 20-year home mortga ge, under the Private Mortgage Insurance Disclosure, when is the earliest that the p rivate mortgage insurance will automatically terminate? A. At the end of 10 years B. When the loan is fully repaid C. When the principal balance of loan is first due to reach 78% of the original value of the property D. When the principal balance of loan is first due to reach 24% of the original value of the property 311. According to the Mortgage Broker Practices Act (MBPA), which of the followi ng information is NOT required to be disclosed to a borrower by the mortgage broker licensee? A. Finance charge B. Prepaid interest C. Surety bond amount D. Annual percentage rate 312. All of the following reasons for denial of credit would be permitted under the Equal Credit Opportunity Act (ECOA) EXCEPT: A. the applicant s failure to respond to a notification of incomplete application B. the applicant s income is below what is required for the credit requested C. the applicant failed to meet the minimum requirements based on the creditor s standards 61 D. the applicant's credit report indicates defaulted payments to several other creditors 313. Under the Mortgage Broker Practices Act (MBPA), if a mortgage broker licens ee allows the mortgage broker business to deteriorate, the Department of Financial Institutions may: A. take over the business and operate it B. take criminal action against the mortgage broker C. seize the mortgage broker's fees for six months D. deny the mortgage broker a new application for a license 314. For a loan to purchase a manufactured home deeded as real estate, which of the following fees on the Good Faith Estimate (GFE) would violate the Real Estate Settlement Procedures Act (RESPA)? A. Appraisal Fee B. Credit Report Fee C. Loan Origination Fee D. HUD-1 Statement Fee 315. According to the Mortgage Broker Practices Act (MBPA), when a borrower give s money to the mortgage broker for payment of third-party services, the money will be considered to be held in trust immediately upon the mortgage broker: A. receiving the money from the borrower B. creating an account for depositing the payment made C. issuing a receipt by the mortgage broker for the payment made

D. depositing the payment received from a borrower in a trust account 316. Which statement regarding the yield spread premium paid to the mortgage bro ker stated in the HUD-1 is CORRECT? A. It must be marked as POC. B. It must be used to compute the total finance charge. C. It must not be included in the HUD-1 statement. D. It must be used to compute the interest. 317. A borrower has purchased a house for $200,000 and paid a 10% down payment. The mortgage on the balance is for a period of 30 years at a fixed interest rate of 6%. What is the monthly payment on this mortgage? A. $1079.19 B. $1199.10 C. $1319.01 D. $1755.14 62 318. According to the Mortgage Broker Practices Act (MBPA), if a mortgage broker advances his or her own funds into a trust account the funds: A. must be held in the same manner as funds paid by the borrower B. can be used for general business purposes at any time C. must not be used to pay third-party providers D. are not subject to examination or enforcement under the MBPA 319. Which action under the Home Owner's Protection Act is valid on the part of the borrower if the lender refuses to cancel the private mortgage insurance (PMI) ev en after it is no longer required? A. Appraise the home's current value B. Stop paying the monthly premiums C. Sue the loan servicer in a civil court D. Take a home equity loan to offset the PMI premiums 320. According to the Mortgage Broker Practices Act (MBPA), after a lock-in agre ement has been entered into, within how many days (including Saturdays) must the mortg age broker disclose the terms of the lock-in agreement to the borrower? A. 1 B. 3 C. 5 D. 7 321. Which of the following is regulated by the Equal Credit Opportunity Act (EC OA) and Regulation B? A. Fee transaction for referrals B. Disclosure of settlement fees C. Prohibition of credit discrimination D. Misleading advertisements for mortgage rates 322. According to the Mortgage Broker Practices Act (MBPA), when a licensed mortgage broker wants to change the surety bond company he or she MUST: A. notify the public about the change in the surety bond company B. file a replacement surety bond with the department prior to the cancellation C. submit the most recent un-audited financial statement to the new surety bond company D. send the current surety bond company's cancellation letter to the mortgage broker commission 63 323. A borrower has approached a lender for refinancing a residential property. According to the Truth In Lending Act (TILA), which of the following information

does the lender have to provide the borrower? A. A new disclosure for the refinancing credit B. The disclosure for the initial credit will have to reissued C. A new disclosure for the refinancing credit only if the borrower requests for it D. No new disclosures are required if a disclosure was provided for the initial credit 324. Under the Mortgage Broker Practices Act (MBPA), a licensed real estate brok er is exempt from having a mortgage broker or loan originator license for assisting a purchaser in obtaining financing for a residential mortgage loan if the broker receives: A. a Mortgage Broker Commission only B. a customary real estate commission only C. a commission for referring an escrow agent D. a commission for negotiating with a lender 325. A co-borrower's information is required to be recorded in a loan applicatio n form when the: A. co-borrower is a senior citizen B. co-borrower is the spouse of the borrower C. credit score of the co-borrower is below average D. income of the co-borrower is used for loan qualification 326. A mortgage broker enters into a written agreement with an applicant and est ablishes the interest rate for the mortgage loan and is closed within the time period spe cified. Which of the following did they enter into? A. Lock-in agreement B. Good Faith Estimate (GFE) C. Loan brokerage agreement D. Accepted mortgage application 327. [This question has been removed from the study guide.] 328. Which of the following should be the same in two separate loan programs for a comparison of Annual Percentage Rates? A. Loan fees B. Time period C. Interest rate D. Loan amount 64 329. According to the Mortgage Broker Practices Act (MBPA), a professional opini on of value on a property is called: A. title B. appraisal C. area report D. Good Faith Estimate (GFE) 330. Under the Fair Housing Act (FHA), which of the following persons can claim to be an "aggrieved person"? A. An applicant who is unable to qualify for a loan to buy a house B. A person who is injured because the house was in a state of disrepair C. A person who is unable to find employment close to the place of residence D. A person who claims to have been injured by a discriminatory housing practice 331. A designated broker not affiliated with a professional organization wants t o offer continuing education courses on the mortgage broker industry. According to the Mortgage Broker Practices Act (MBPA), the designated broker must have the course

approved by the: A. mortgage broker licensee B. mortgage broker commission C. Department of Licensing D. Department of Financial Institutions 332. The Equal Credit Opportunity Act (ECOA) protects those who: A. seek loans from a bank B. apply for government jobs C. seek employment in a company D. apply for admission to an educational institution 333. Under the Mortgage Broker Practices Act (MBPA), within how many business da ys must the mortgage broker notify the department when terminating the services of the designated mortgage broker? A. Three B. Five C. Fifteen D. Thirty 334. An applicant submitted a home loan application and the loan was approved on the same day. According to the Real Estate Settlement Procedures Act (RESPA), within how many business days of the application must the Good Faith Estimate (GFE) documen t be sent 65 A. 3 B. 10 C. 30 D. 45 335. According to the Mortgage Broker Practices Act (MBPA), who is NOT responsib le for the violation of any provision of the act by the person independently contra cting with a licensed mortgage broker? A. Loan originator B. Mortgage broker C. Third-party provider D. Independent contractor 336. According to the Truth in Lending Act, which of the following information M UST a mortgage broker disclose? A. Credit score of the applicant B. Interest offered by other lenders C. Interest offered to other borrowers D. Discount points to be paid to the lender 337. An applicant is interested in a 30-year home mortgage with 2 points at a fi xed interest rate of 6%. The price of the house is $250,000 and the down payment wil l be 20%. What is the loan amount? A. $196,000 B. $200,000 C. $204,000 D. $250,000 338. According to the Mortgage Broker Practices Act (MBPA), electronic transmiss ion of trust funds: A. can be done only by the borrower

B. require identification by a name or number C. need not be done directly into the trust account D. are exempt from monthly trust account reconciliation 339. Under the Home Mortgage Disclosure Act, which of the following information constitutes optional data that a financial institution may collect regarding app lications for home purchase loans, home improvement loans, and refinancings for each calendar year? A. The type of loan B. The location of the property C. The owner-occupancy status 66 D. The reason a loan application was denied 340. According to the Mortgage Broker Practices Act (MBPA), which of the followi ng documents is NOT part of the books and records a mortgage broker must retain and make available for examination? A. Advertisements B. Trust accounting record C. Mortgage transaction documents D. Continuing education course contents 341. In order to comply with the Equal Credit Opportunity Act (ECOA), a credit application form must be retained by a creditor for a maximum of how many months ? A. 10 B. 15 C. 25 D. 30 342. A borrower pays the fee for a lock-in agreement in the form of a check paya ble to the lender. There is no agreement with the lender as to how the check should be handled. According to the Mortgage Broker Practices Act (MBPA), within how many business days of receiving the check should the check be delivered to the lender? A. 3 B. 5 C. 10 D. 35 343. A mortgage lender is affiliated with a title company and offers its custome rs a discount price for the title company s services, which is lower than if the servic e was sourced directly from the title company. The mortgage lender does not require th e customers to utilize the services of the title company and they are provided wit h an affiliated business disclosure form. Which of the following statements is CORREC T? A. The mortgage lender is in violation of the Real Estate Settlement Procedures Act (RESPA). B. The title company is in violation of the Real Estate Settlement Procedures Ac t (RESPA). C. Both are not in violation of the Real Estate Settlement Procedures Act (RESPA). D. Both are in violation of the Real Estate Settlement Procedures Act (RESPA). 67 344. Under the Mortgage Broker Practices Act (MBPA), a document in which a mortgage broker or loan originator agrees to make a loan available at a specific

rate of interest for a specific period of time to a borrower is called a: A. lock-in agreement B. pre-approval agreement C. pre-screening agreement D. loan-originator agreement 345. The Special Information Booklet must be provided by a lender to a borrower, as required by the: A. Truth-in-Lending Act (TILA) B. Uniform Settlement Statement C. Consumer Protection Act D. Real Estate Settlement Procedures Act (RESPA) 346. A mortgage company collected $200 as an appraisal fee from an applicant and paid the appraiser $160. The mortgage company kept the $40 as profit. Which of the fo llowing companies is in violation of the Real Estate Settlement Procedures Act (RESPA)? A. Only the mortgage company is in violation B. Only the appraiser is in violation C. Both the mortgage company and the appraiser are in violation D. Neither the mortgage company nor the appraiser are in violation 347. According to the Consumer Loan Act (CLA), using the simple interest method of calculation to which of the following payments is each payment applied first? A. Unpaid penalties B. Accumulated interest C. Unpaid balance of the principal amount D. Remainder of the payment applied to the unpaid balance of the principal 348. An applicant wants to compare 4 loans for $225,000 at a fixed rate for 30 y ears with different interest rates and varying lender fees as given below. Loans Loan 1 Loan 2 Loan 3 Loan 4 Interest Rates 6% 6.25% 5.75% 6.375% Loan fees $1,200 $1,000 $2,000 $500 Loan points 1 2 4 1 Which scenario offers the lowest prepaid finance charges? A. Loan 1 B. Loan 2 C. Loan 3 68 D. Loan 4 349. Under the Mortgage Broker Practices Act (MBPA), when a change occurrs to a loan originator s license, within how many days must he or she file a license amendment application form with the Department of Financial Institutions? A. 25 B. 30 C. 31 D. 40 350. Under the Fair Housing Act, which of the following denials would constitute discrimination? A. Refusal to loan to a disabled veteran with insufficient income B. Refusal to fund a loan for a non-owner occupied property C. Refusal due to the borrower's unwillingness to sign the mortgage papers D. Refusal due to marital status 351. The daily fine for violating any provision of the Mortgage Broker Practices Act (MBPA) is a maximum of: A. 50

B. 100 C. 500 D. 1000 352. A mortgage broker has advertised $1200 down for a house in a local newspaper. According to the Truth In Lending Act (TILA), which of the following information must be disclosed in the same advertisement? A. The location of the house B. The total area of the house C. The annual percentage rate D. The annual property taxes 353. Under the Mortgage Broker Practices Act (MBPA), the authority granted by a loan originator s license can be used by: A. loan originator only B. loan originator and the lender only C. loan originator and the designated mortgage broker only D. loan originator, the lender and the designated mortgage broker 69 354. According to the Mortgage Broker Practices Act (MBPA), the owner of the loa n file of a borrower is the: A. title company B. loan originator C. real estate broker D. mortgage broker 355. According to the Mortgage Broker Practices Act (MBPA), if the licensed mort gage broker who receives an order to produce all books for investigation does not pro duce the books, the director of the Department of Financial Institutions may: A. cancel the license without further notice B. sue the mortgage broker C. issue a subpoena compelling production of the books D. visit the mortgage broker's office until the books are produced 356. A mortgage broker receives a complete application from a borrower. Within h ow many days MUST the mortgage broker provide the borrower with an itemization and explanation of all fees and costs? A. 1 B. 3 C. 5 D. 7 357. An applicant was offered a fixed interest loan for a principal amount of $1 00,000 by 4 different lenders with various loan origination fees and payment periods. Whic h of the following lenders offers the lowest APR for the applicant? Loans Lender 1 Lender 2 Lender 3 Lender 4 Interest Rates 6.0% 6.125% 6.250% 6.375% Loan Period 15 years 30 years 15 years 30 years Mortgage Broker Fees $3500 $3000 $2500 $2000 Discount points 4% 3% 2% 1% A. Lender 1 B. Lender 2 C. Lender 3 D. Lender 4 358. According to the Mortgage Broker Practices Act (MBPA), a loan originator is

required to disclose to the borrower if the loan originator: A. also is the real estate broker in the transaction B. also has a website to originate loans 70 C. also works for an exempt broker D. also works as an affiliate of a bank 359. Under the Fair Housing Act (FHA), with whom should an individual file a complaint if the individual believes that he or she has been a victim of illegal discrimination in housing? A. Department of Justice B. Federal Trade Commission C. Housing Finance Commission D. Department of Housing and Urban Development 360. According to the Mortgage Broker Practices Act (MBPA), the dispute between a mortgage broker licensee and a third-party provider regarding the quality of ser vice provided by the third-party provider becomes a bona fide dispute when the mortga ge broker licensee: A. notifies the Department of Financial Institutions B. files a legal suit against the third-party provider C. files a public notice in a local newspaper D. gives a written report to the third-party provider 361. Under the Equal Credit Opportunity Act (ECOA), information related to an applicant s former spouse can be requested when the applicant: A. is the sole applicant B. is willing to discuss the former spouse s income C. has stated child support from former spouse as part of income D. has not included the former spouse s income in the application 362. Which of the following transactions is NOT covered in the Mortgage Broker Practices Act (MBPA)? A. Making a residential mortgage loan B. Obtaining a residential mortgage loan C. Advertising a residential mortgage loan D. Assisting in obtaining a residential mortgage loan 363. A mortgage broker charges its customers a fee which is shared between the r eal estate broker and the mortgage broker for a customer referral. Which of the foll owing statements about the mortgage broker and the real estate broker is CORRECT? A. Only the real estate agent is in violation of the Real Estate Settlement Procedures Act (RESPA). B. Only the mortgage broker is in violation of the Real Estate Settlement Procedures Act (RESPA). 71 C. Both the mortgage broker and the real estate broker are in violation of the R eal Estate Settlement Procedures Act (RESPA). D. Neither the mortgage broker nor the real estate broker are in violation of th e Real Estate Settlement Procedures Act (RESPA). 364. A borrower submits an application for prequalification for a mortgage loan. Under the Mortgage Broker Practices Act (MBPA), this application converts to an applic ation for a residential mortgage loan when the: A. property the borrower intends to buy has been identified B. credit reporting agency submits a consumer report to the lender C. lock-in agreement for a particular rate of interest has been signed

D. employment history of the borrower has been verified by the employer 365. Which act requires the disclosure of a HUD-1 settlement statement in a mort gage loan transaction? A. Truth-in-Lending Act (TILA) B. Uniform Settlement Statement C. Mortgage Brokers Practices Act (MBPA) D. Real Estate Settlement Procedures Act (RESPA) 366. A mortgage broker conducts a free educational seminar at the premises of a real estate broker to educate the agents about a new mortgage promotion. Which compan y is in violation of the Real Estate Settlement Procedures Act (RESPA)? A. Only the mortgage broker is in violation B. Only the real estate broker is in violation C. The mortgage broker and the real estate broker are in violation D. Neither the mortgage broker nor the real estate broker are in violation 367. Under the Mortgage Broker Practices Act (MBPA), which of the following is N OT a violation? A. Offering loan rates that are currently unavailable B. Disclosing some but not all fees related to a residential mortgage loan C. Filing a lien against a borrower s property without a legal basis D. Paying for a borrower s third party services 368. Which of the following fees are paid to third parties for services required by the lender? A. Escrow reserve B. Private mortgage insurance C. Government charges D. Title insurance 72 369. According to the Mortgage Broker Practices Act (MBPA), a borrower's informa tion can be transmitted from a licensed mortgage broker to another mortgage broker up on the written request of the: A. lender B. borrower C. loan originator D. new mortgage broker 370. According to Regulation P implementing the Gramm-Leach-Bliley Act (GLBA), which of the following information about a customer constitutes nonpublic person al information? A. Telephone number B. Street address of the subject property C. Assessed property values D. Current loan balances 371. The examination report on a mortgage broker licensee's business submitted b y an independent certified professional is missing information. According to the Mort gage Broker Practices Act (MBPA), who will NOT be required to provide the information ? A. Mortgage broker licensee B. Designated mortgage broker C. The independent certified professional D. Registered agent of the mortgage broker 372. According to the Truth In Lending Act (TILA), under what circumstance can a

consumer waive the right to rescind? A. Credit is needed for a family vacation B. Funds are required for home improvement C. Credit is required for the purchase of a new car D. Funds are required to meet a personal financial emergency 373. Under the Mortgage Broker Practices Act (MBPA), what is the range of the am ount for which a mortgage broker must provide a surety bond to the director to mainta in the mortgage broker license? A. Between $10,000 and $20,000 B. Between $20,000 and $60,000 C. Between $61,000 and $75,000 D. Between $76,000 and $101,000 73 374. Which of the following information is NOT included in an Adjustable Rate Mortgage (ARM) disclosure? A. Initial rate of interest B. Frequency in rate change C. Period of the initial rate D. Rate after the initial rate 375. According to the Mortgage Broker Practices Act (MBPA), what may a mortgage broker charge a borrower for third-party services? A. Actual costs B. A percent of brokerage costs C. A fixed rate decided by the mortgage broker D. A fee not exceeding $300 376. When providing a borrower with a Good Faith Estimate (GFE), which of the following actions is a violation of Real Estate Settlement Procedures Act (RESPA )? A. Not disclosing the trust account bank location B. Not verifying the borrower's identity C. Not obtaining the bank account details of the borrower D. Not disclosing the name of a frequently used settlement service provider 377. A mortgage broker offers a 30-year fixed rate mortgage for $100,000 at 6.50 % interest. The mortgage broker charges a 2% mortgage broker fee on the loan. What is the APR on this loan? A. 6.09% B. 6.50% C. 6.59% D. 6.69% 378. According to the Mortgage Broker Practices Act (MBPA), which of the followi ng requests by a mortgage broker to the Department of Financial Institutions will N OT require a good standing review? A. Appointing a different designated broker B. Becoming an exempt mortgage broker C. Becoming an independent contractor D. License for a new branch office 379. Under the Consumer Credit Protection Act, a meaningful disclosure of credit terms to the consumer is required to: A. protect the consumer against unfair credit billing B. inform the customer of all available interest rates 74 C. encourage consumers to take loans to buy property only D. discourage consumers from talking to more than one credit facility

380. According to the Mortgage Broker Practices Act (MBPA), who among the follow ing people involved in a residential mortgage broker transaction may NOT be investig ated by the department of financial institutions? A. Lender B. Borrower C. Loan Originator D. Mortgage Broker 381. According to the Truth In Lending Act (TILA), if an applicant makes an oral inquiry about the cost of credit, which of the following information MUST be provided? A. Simple Interest Rate B. Annual Percentage Rate C. Compound Interest Rate D. Discounted Interest Rate 382. Which of the following units is a housing unit built in a factory, and then taken to the place where it will be occupied? A. Motor homes B. Travel trailers C. Manufactured homes D. Recreational vehicles 383. Under the Real Estate Settlement Procedures Act (RESPA), a mortgage broker is NOT required to provide a Good Faith Estimate (GFE) if: A. a Good Faith Estimate is orally discussed by the mortgage broker within the 3 business day period B. interest rates are expected to come down C. application for credit is denied before the end of the 3 business day period D. the exact fee for the settlement service providers are not known 384. According to the Mortgage Broker Practices Act (MBPA), which of the followi ng records must be maintained by a mortgage broker if the mortgage broker is NOT th e lender? A. The income proof of the lender B. Educational certificates of the borrower C. Any advertisements relating to the mortgage transaction D. Correspondence a borrower has had with various other real estate brokers 75 385. The charges in a final HUD-1 statement must be entered as: A. actuals in dollar amount B. estimates in dollar amount C. actuals as percent of loan financed D. estimates as percent of loan financed 386. A mortgage broker enters into a rental agreement with a real estate agent w here the rent for the office space is at the prevailing market price. Which company is in violation of the Real Estate Settlement Procedures Act (RESPA)? A. Only the mortgage broker company B. Only the real estate agent C. Both are in violation of RESPA D. Neither company is in violation of RESPA 387. A mortgage broker deposits his or her own funds into a trust account. Accor ding to the Mortgage Broker Practices Act (MBPA), if the loan does not close, the funds are the property of the:

A. mortgage broker B. borrower C. lender D. third-party service provider 388. Full documented loans are obtained by people who: A. only provide their name and credit score B. are unable to verify their income and their assets C. have sufficient and documented income and assets D. do not wish to disclose their income and their assets 389. According to the Mortgage Broker Practices Act (MBPA), who must notify the Department of Financial Institutions if a licensed mortgage broker is convicted of a crime? A. The lender B. The borrower C. The mortgage broker D. The third-party provider 390. A customer has taken a 15-year mortgage through a mortgage broker. Under th e Gramm-Leach-Bliley Act (GLBA), how often is the mortgage broker required to disc lose to the customer its policies towards maintaining privacy of customer information ? A. Every 2 years 76 B. At least annually C. Halfway through the 15 year period only D. At the time of granting the mortgage only 391. According to the Mortgage Broker Practices Act (MBPA), a mortgage broker do es NOT disclose his or her compensation in the: A. lock-in agreement B. settlement statement C. Good Faith Estimate D. trust account deposit register 392. According to the Truth In Lending Act (TILA), a loan applicant has the righ t to rescind if: A. the co-signer is a family member B. the principal dwelling is used to guarantee repayment C. the spouse s signature is provided to guarantee repayment D. the applicant has used any of his personal property to guarantee repayment 393. The department receives an incomplete application for a mortgage broker's l icense. Under the Mortgage Broker Practices Act (MBPA), within how many days of receivin g the department's second request for the complete information must the applicant send the information to the department to avoid the application being considered as aband oned? A. 5 B. 10 C. 15 D. 20 394. According to the Equal Credit Opportunity Act (ECOA), when a loan applicati on is denied, the lender MUST: A. provide a written explanation for the denial B. refund the loan application fee C. refer the applicant to a different broker

D. provide closing documents to the applicant 395. Under the Mortgage Broker Practices Act (MBPA), who is responsible for maki ng the rules to direct how mortgage brokers are expected to handle checks received by the broker when operating a trust fund? A. Lender B. Mortgage broker C. Washington State Auditor D. Department of Financial Institutions 77 396. Good Faith Estimate (GFE) must be provided by a mortgage broker to a custom er as required by the: A. Truth in Lending Act (TILA) B. Uniform Settlement Statement C. Equal Credit Opportunity Act (ECOA) D. Real Estate Settlement Procedures Act (RESPA) 397. A borrower took a fixed rate loan for 30 years for $100,000 at an interest rate of 5.75%. The lender charged a loan origination fee of $6,500 and 3 discount points . What is the total amount of lender charges? A. $6,503 B. $6,530 C. $6,800 D. $9,500 398. According to the Mortgage Broker Practices Act (MBPA), a loan originator ma y attend how many mortgage broker commission meetings to earn credit for 1 continu ing education course? A. 1 B. 3 C. 5 D. 6 399. Regulation P implementing the Gramm-Leach-Bliley Act (GLBA) summarizes what obligations of a financial institution? A. To make a public offer of securities B. To provide notice to its customers about its privacy policies C. To provide privacy notices to a business D. To send annual notices to consumers even if they are not customers 400. According to the Mortgage Broker Practices Act (MBPA), the department is NO T required to give advance notice to the mortgage broker before an examination whe n the: A. examination is 'for cause' B. examination is routine in nature C. mortgage broker has an Internet company D. mortgage broker has completed five years in business 78 401. A creditor advertises the lending rate for a 30-year mortgage in a newspape r. Which of the following rates can be advertised as the primary lending rate by the cred itor without violating the Truth In Lending Act (TILA)? A. Daily Percentage Rate B. Monthly Percentage Rate C. Bi-Annual Rate D. Annual Percentage Rate

402. Who can be members of the Mortgage Broker Commission? A. Mortgage brokers and consumers B. Mortgage brokers and lenders C. Mortgage brokers and real estate brokers D. Mortgage brokers and loan originators 403. Which of the following loans is exempt from the Real Estate Settlement Proc edures Act (RESPA)? A. A mortgage for the construction of a residential property B. A temporary loan for construction of a residential property C. A loan to purchase a single family home D. A loan to purchase a 3-unit residential building 404. According to the Mortgage Broker Practices Act (MBPA), which of the followi ng actions does NOT require the payment of a fee? A. Renewing a mortgage broker license B. Applying for a new mortgage broker license C. Requesting a brief adjudicative proceeding on the denial of an application D. Requesting permission to open a new branch office for mortgage business 405. Truth in Lending Disclosure Statement (TIL) fees and costs are determined b y the: A. closing agent B. mortgage broker C. state government D. federal government 406. What is the monthly payment for the mortgage offer given below? Amount Financed Mortgage Term Interest Rate Prepaid Charges $167,500 30 years 6.5% $2,500 A. 1027.11 B. 1042.91 C. 1058.71 79 D. 1074.52 407. According to the Mortgage Broker Practices Act (MBPA), closed trust account ledger sheets MUST be identified by the: A. time period, and borrower name or loan number B. date of loan application C. loan originator's name D. mortgage broker license number 408. Under the Fair Credit Reporting Act (FCRA), which of the following informat ion may be withheld by a consumer reporting agency at the time of disclosing informa tion to the consumer? A. Credit information B. Medical information C. Employment information D. Financial information 409. According to the Mortgage Broker Practices Act (MBPA), which of the followi ng responsibilities should a mortgage broker licensee complete before selling the m ortgage broker business? A. Close all mortgage loans currently in process B. Claim the remaining funds in the trust account C. Transfer the mortgage broker license to the designated broker D. Send written notice to borrowers about the change in ownership 410. According to the USA Patriot Act, what is the advantage of two financial in stitutions sharing customer identification and verification obligations if the two share a

customer? A. Contact customers easily B. Keep a check on funds transfer C. Identify activities that may involve money laundering D. Ensure that all information about a customer is the same 411. According to the Mortgage Broker Practices Act (MBPA), what action will the Department of Financial Institutions take against a designated mortgage broker w ho fails to fulfill the continuing education requirement? A. Claim damages from the mortgage broker's surety bond B. Deny the application for renewal of license C. Impose a penalty of $300 D. File a case of financial misconduct 80 412. According to the Truth In Lending Act (TILA), what must be taken into consideration in making calculations and disclosures? A. The occurrence of leap year for calculating terms of repayment B. The base salary and commissions as part of total family income C. That different months have different number of days D. That the scheduled payment date may not be a business day 413. Under the Mortgage Broker Practices Act (MBPA), which of the following conditions must be fulfilled in order for a mortgage broker to charge an applica nt a fee for services rendered when a loan is not closed on the terms and conditions agre ed upon by the applicant and the mortgage broker? A. The mortgage broker received the loan application from an applicant through a loan originator. B. The applicant failed to close a loan through no fault of the mortgage broker. C. The applicant has not made any deposit as advance for the services. D. The mortgage broker has a separate loan originator license. 414. A rate-lock agreement is between the applicant and a: A. lender B. loan originator C. designated mortgage broker D. insurance agent 415. Which license must an independent contractor loan processor for a mortgage broker company have in order to process loans in Washington? A. Bank Officer License B. Loan Originator License C. Real Estate Broker License D. Limited Practice Officer License 416. Under the Washington State Usury Act, what is the default annual interest r ate for a $10,000 personal loan if there is no different rate agreed upon in writing betwe en the parties? A. 6% B. 8% C. 10% D. 12% 417. Which of the following payments is made to a broker at settlement as part o f the compensation? A. Mortgage broker fee 81 B. Appraisal fee C. Inspection fee D. Credit report fee

418. Under the Mortgage Broker Practices Act (MBPA), within how many days of the expiration date may a loan originator renew his or her license? A. 25 B. 30 C. 31 D. 45 419. Under the Gramm-Leach-Bliley Act (GLBA), a mortgage broker may reveal to a non-affiliated third-party any nonpublic personal information of a customer when : A. the third-party asks for the customer information B. a notice to that effect has been provided to the customer C. a legal notice is sent by the third-party for the information D. the time period for keeping information confidential is passed 420. Two borrowers have chosen the same residential loan program with the same underwriting characteristics. According to the Mortgage Broker Practices Act (MB PA), a change in which of the following MUST be the same for the two borrowers when bot h have paid for discount points? A. Reduction of interest rate B. Increase in the periodic payment C. Reduction in third-party provider charges D. Increase in the lock-in agreement charges 421. If the creditor fails to send the required disclosures related to Truth In Lending Act (TILA), within how many years does the customer have the right to rescind from t he date of consummation of transaction? A. 1 B. 2 C. 3 D. 4 422. Under the Mortgage Broker Practices Act (MBPA), for a mortgage broker licen se to be renewed, the mortgage broker must show evidence that the following has comple ted required continuing education: A. mortgage broker B. loan originator C. designated broker 82 D. loan processor 423. When is a mortgage broker NOT required to have a trust account? A. When no funds are received from or on behalf of the borrower B. When the mortgage broker has obtained a written agreement from the lender C. When the mortgage broker is exempt from license requirements D. When the mortgage broker has obtained a written agreement from the borrower 424. According to the Mortgage Broker Practices Act (MBPA), under what circumstances is the mortgage broker required to provide a borrower with a copy of the appraisal? A. If the borrower has paid for the appraisal B. If the appraisal has been done by a third-party C. If the borrower has paid the brokerage fees to the mortgage broker D. If the borrower makes the request within five days of the appraisal completio n 425. Truth in Lending Act (TILA) requires disclosure of: A. estimated closing costs B. credit history of the borrower

C. key details of the property on which loan are taken D. key terms of the credit transaction 426. The amount financed for a mortgage is the total amount of the: A. finance charges B. interest to be paid to the lender C. principal and cost of credit D. payments to be made by the borrower during the loan term 427. According to the Mortgage Broker Practices Act (MBPA), which of the followi ng requirements MUST a loan originator fulfill to renew his or her license? A. Originate a minimum of 50 mortgage loans in one year B. Represent a minimum of five mortgage brokers C. Complete the approved annual continuing education D. Maintain a Computer Loan Information system (CLI) 428. The Private Mortgage Insurance (PMI) disclosure states that a PMI is requir ed to be bought for a mortgage loan when the: A. down payment is less than 20% of the original value of the property B. down payment is more than 20% of the original value of the property 83 C. property is more than 20 years old D. borrower has chosen an adjustable mortgage rate 429. A mortgage broker's license is suspended after the Department of Social and Health Services certifies that the person is not in compliance with a support order. Ac cording to the Mortgage Broker Practices Act (MBPA), the license can be reissued after the: A. Department of Financial Institutions receives a release issued by the Department of Social and Health Services B. Department of Financial Institutions sends a notice to the Department of Soci al and Health Services about the mortgage broker's good standing C. mortgage broker pays a penalty to the Department of Social and Health Services and applies for a new mortgage broker license D. mortgage broker submits an assurance of discontinuance to the Department of Financial Institutions 430. Under the USA Patriot Act, what has Congress found to be one of the main ef fects of money laundering and the defects in financial transparency on which money launderers rely? A. Increase in lending rates B. Making counterfeit currency C. Financing of global terrorism D. Reduction in interest rates on fixed deposits 431. Under the Mortgage Broker Practices Act (MBPA), who appoints the designated mortgage broker? A. Mortgage broker licensee B. Mortgage broker commission C. Director of Financial Institutions D. Branch manager of the mortgage broker 432. In order to comply with the Truth in Lending Act (TILA), which of the follo wing are NOT included as finance charges? A. Settlement/closing fees B. Mortgage broker fees C. PMI insurance D. Appraisal fees 433. Under the Mortgage Broker Practices Act (MBPA), which of the following conditions is NOT a factor that is determined when the department conducts a goo d

standing review of a mortgage broker license application? A. If the licensee has filed and maintained the required surety bond 84 B. If the designated mortgage broker has been convicted of a felony within the prior seven years C. If the licensee has engaged in business transactions outside the state of Washington D. If the licensee has taken care to prevent his/her mortgage broker business fr om deteriorating 434. Which of the following information is NOT found on a loan application? A. Finance charges for the loan B. Applicant's income C. Rate of interest for the loan D. Mortgage broker fees 435. A hazard insurance company hosts a dinner for the employees of a mortgage b roker. The designated broker encourages the employees to send clients to the insurance company. Which of the following violated the Real Estate Settlement Procedures A ct (RESPA)? A. Only the hazard insurance company B. Only the mortgage broker C. Both the hazard insurance company and the mortgage broker D. Neither the hazard insurance company nor the mortgage broker 436. Under the Consumer Loan Act (CLA), using the add-on method, in addition to the stated loan amount, which of the following components may be added? A. Principal balance B. Any other charges C. Interest payable on loan D. Interest payable for failure to pay according to loan terms 437. Which of the following statements is TRUE about a full document loan? A. Only income is disclosed and verified B. Only assets are disclosed and verified C. Both income and assets are disclosed and verified D. Both income and assets are disclosed but not verified 438. According the Mortgage Broker Practices Act (MBPA), which of the following requirements must a mortgage broker licensee comply with if the licensee does no t have a physical location in Washington? A. Maintain a registered agent in Washington B. Open a branch office in Washington apart from the office outside the state. 85 C. Operate a trust account in a federally insured financial institution in Washington D. Send a copy of books and records weekly to the Department of Financial Institutions 439. According to the USA Patriot Act, all mortgage brokers are required to desi gn and implement a: A. loan programs that will benefit customers B. customer identification program C. minimum limit on trust fund deposits D. policy to protect funds being transferred from abroad 440. A mortgage broker licensee applies for a new branch office license. Accordi ng to the Mortgage Broker Practices Act (MBPA), the department does NOT determine if the: A. mortgage broker is in good standing with the department B. surety bond is sufficient to cover the loan originators who will work from th

e branch C. physical address listed in the application can be verified as a branch office location D. number of independent contractors with the broker is sufficient to service th e broker's business 441. According to the Truth In Lending Act (TILA), which of the following descri bes a refinance? A. A change in the payment schedule B. A reduction in the annual percentage rate C. An existing obligation is satisfied and replaced by a new obligation D. Renewal of a single payment obligation with no change in the original terms 442. Under the Mortgage Broker Practices Act (MBPA), when a mortgage broker terminates a relationship with a loan originator, the mortgage broker MUST: A. notify the public about the termination through a newspaper advertisement B. notify the department of financial institutions about the termination C. pay a termination fee to the department of financial institutions D. activate a loan originator license 443. How is the rate-lock agreement disclosed to an applicant? A. By a verbal disclosure B. In the loan application C. In the good faith estimate D. In a written disclosure 86 444. Under the Mortgage Broker Practices Act (MBPA), which of the following pers ons may accept a fee from a borrower once a borrower obtains a loan from a lender? A. Lender B. Loan originator C. Mortgage broker D. Realtor 445. Which of the following amounts is NOT required to be mentioned in a Good Fa ith Estimate (GFE)? A. Amounts required to be paid in advance B. Mortgage broker's surety bond amount C. Reserves deposited with the lender D. The borrower's credit score 446. An applicant obtains offers for a 30 year fixed interest loan for a princip al amount of $100,000 from 4 different lenders. Which of the following lenders offers the low est APR for the applicant? Loans Lender 1 Lender 2 Lender 3 Lender 4 Interest rates 6.0% 6.25% 6.50% 6.75% Discount points 4% 3% 2% 1% A. Lender 1 B. Lender 2 C. Lender 3 D. Lender 4 447. According to the Mortgage Broker Practices Act (MBPA), before a mortgage br oker can offer lenders' loan products, the mortgage broker MUST have written agreemen ts with: A. separate loan officers for the transaction B. mortgage brokers to co-broker the transaction C. third-party service providers

D. lenders for the loan products offered 448. The Private Mortgage Insurance (PMI) disclosure informs the borrower that a Private Mortgage Insurance (PMI) is required to protect against: A. damages to property B. increases to interest rates C. monthly loan payment defaults D. denial of a mortgage loan application 87 449. According to the Mortgage Broker Practices Act (MBPA), a change in which of the following terms and conditions will NOT require a redisclosure to the borrower? A. Lien position of the loan B. Required balloon payments C. Projected closing date D. Initial fixed period of the loan 450. An applicant has applied for credit that is being secured by a lien on a dw elling. In order to comply with the Equal Credit Opportunity Act (ECOA), which of the follo wing documents MUST the creditor provide to the applicant? A. Appraisal report B. Self-test report C. Equal Credit Opportunity Act report D. Real Estate Settlement Procedures Act report 451. Under the Mortgage Broker Practices Act (MBPA), which of the following transactions CANNOT be conducted by a loan originator in relation to trust funds ? A. Solicit funds from a borrower B. Transfer funds to a third-party provider C. Hold a check received from a borrower for transmittal to a mortgage broker D. Deposit check from a borrower into a loan originator's own account 452. A mortgage broker who represents a buyer is also licensed to perform the fu nctions of a title insurance agent. The mortgage broker refers the buyer to a title comp any and also performs a significant portion of the work related to issuing the title ins urance. The title company pays the mortgage broker a percentage of the title insurance premi um that was paid by the home buyer. Which of the following statements is CORRECT? A. The mortgage broker is in violation of the Real Estate Settlement Procedures Act (RESPA). B. The title company is in violation of the Real Estate Settlement Procedures Ac t (RESPA). C. Both the mortgage broker and the title insurance company are in violation of the Real Estate Settlement Procedures Act (RESPA). D. Neither the mortgage broker nor the title insurance company are in violation of the Real Estate Settlement Procedures Act (RESPA). 453. Under the Mortgage Broker Practices Act (MBPA), which of the following properties is NOT considered a residential real estate? A. Ten unit apartment B. Single family home C. Fourplex 88 D. Duplex 454. Under which section of the HUD-1 statement do the charges for survey fees a ppear? A. Title charges

B. Settlement charges C. Additional settlement charges D. Government recording and transfer charges 455. A mortgage company displays its sign at a realtor s office. Which of the foll owing statements is CORRECT? A. Only the mortgage company is in violation of the Real Estate Settlement Procedures Act (RESPA) B. Only the realtor is in violation of the Real Estate Settlement Procedures Act (RESPA) C. Both the mortgage company and the realtor are in violation of the Real Estate Settlement Procedures Act (RESPA) D. Neither the mortgage company nor the realtor are in violation of the Real Estate Settlement Procedures Act (RESPA) 456. If a loan originator advertises his or her services, the advertisement MUST include: A. the name of the lender B. the name of the mortgage broker C. the name of the designated broker D. the names of other loan originators working for the mortgage broker 457. How does Freddie Mac benefit the consumer? A. Consumers can take more than one mortgage. B. By making mortgage products available to consumers. C. Freddie Mac does not ask for a private mortgage insurance (PMI). D. If a consumer is unable to pay the installments, they can approach Freddie Ma c for time. 458. Under the Mortgage Broker Practices Act (MBPA), when the location of a trus t account changes within how many days must the mortgage broker notify the Departm ent of Financial Institutions? A. 5 B. 10 C. 15 D. 20 89 459. Which of the following would be considered an adverse action by a lender on a loan? A. Taking action on an account due to default in payment B. Changing terms of an account that was agreed in writing by the customer C. Refusing an extension of credit because the creditor does not offer such cred it plans D. Refusing an increase in credit amount to an applicant who has requested an increase 460. Under the Mortgage Broker Practice Act (MBPA), which of the following statements is CORRECT? A. Each branch office requires a separate branch manager. B. A main office can be shared with a licensed real estate broker. C. Each branch office requires a separate designated broker. D. The mortgage broker's branch offices do not require separate licenses. 461. According to the Truth In Lending Act (TILA), what change from the annual percentage rate is generally considered as accurate during disclosures? A. 1/8 percent B. 1/4 percent C. 1/2 percent D. 3/4 percent 462. Which of the following is exempt from the Mortgage Broker Practices Act

(MBPA)? A. A lender who makes the loan to a borrower under the Consumer Loan Act B. A licensed insurance agent who also has a license to act as a loan originator C. A mortgage broker who makes the loan from his or her own funds intending to resell the loan D. A loan originator who takes a loan application from a mortgage broker outside Washington 463. Which of the following information is NOT required to be recorded in a loan application form? A. Borrower's date of birth B. Borrower's assets C. Borrower's income D. Borrower's credit score 464. Under the Mortgage Broker Practices Act (MBPA), if an applicant is unable t o get a loan for any reason, within how many days of receiving a request from the applic ant is a 90 mortgage broker required to provide to the applicant copies of any appraisal tha t is paid for by the applicant? A. 3 B. 5 C. 7 D. 10 465. A violation of the Mortgage Broker Practices Act (MBPA) is also a violation of which act? A. Consumer Protection Act B. Retail Installment Contract Act C. Usury Act D. Legislative Agent Act 466. A lender charges the borrower 3 discount points on the loan amount of $100, 000 and no other charges for a fixed rate loan. How much money does the borrower have to pay? A. $30 B. $300 C. $3,000 D. $30,000 467. According to the Mortgage Broker Practices Act (MBPA), an internet-based sy stem that provides information about residential mortgage interest rates and other te rms is called: A. lender information facility B. a real estate information provider C. an internet loan originator business D. a computer loan information system 468. What advantage could a consumer get if he or she wants to buy property by m aking a 5% down payment, taking a mortgage loan for 80% of the home's value, and takin g a home equity loan for up to 15% of the home's value? A. The consumer could avoid paying Private Mortgage Insurance (PMI). B. The consumer can take a second loan as soon as the 15% home equity loan is paid off. C. The interest rates for the mortgage loan could be brought down below the prevailing market rate. D. The interest rates for the home equity loan could be brought down below the

prevailing market rate. 91 469. A mortgage broker licensee makes a mortgage loan with a variable rate of in terest to a borrower. According to the Mortgage Broker Practices Act (MBPA), which informa tion is NOT required to be disclosed to the borrower by the mortgage broker licensee? A. Limitation on an interest rate increase B. Effect of an interest rate increase on the periodic payment C. Circumstances under which the rate may increase D. Total amount to be paid towards interest in the first 5 years 470. If a consumer reporting agency makes an inquiry related to a joint credit a ccount of a borrower and the spouse, which of the following information can be provided un der the Equal Credit Opportunity Act (ECOA)? A. Information about the borrower only B. Information about the spouse only C. Information about the borrower and the spouse D. Information cannot be provided about borrower or spouse 471. According to the Mortgage Broker Practices Act (MBPA), a person must either have a mortgage broker license or be exempt from licensure to conduct which of the fo llowing business transactions? A. Buying residential real estate B. Making a residential mortgage loan C. Processing residential mortgage loans as an employee D. Examining the books and records of a mortgage business 472. Which of the following fees related to a settlement service involving a fed erally related mortgage loan would violate the Real Estate Settlement Procedures Act (RESPA)? A. Attorney Fee B. Referral Fee C. Credit Report Fee D. Loan Origination Fee 473. According to the Mortgage Broker Practices Act (MBPA), a trust account maintained in a federally insured financial institution located in Washington St ate is designated for the benefit of the: A. borrower B. department C. mortgage broker D. third-party provider 92 474. A borrower has paid the fees for the credit report before closing. How is t his fee noted in a HUD-1 statement? A. Paid to seller B. Paid to lender C. Paid before closing D. Paid outside of closing 475. When a mortgage broker requests an opinion of value from an appraiser on a residential property, the mortgage broker MUST NOT: A. include the predetermined opinion of the mortgage broker in the request B. provide the appraiser with a list of recent sales in the area C. request a certain value from the appraiser D. include the predetermined opinion of the borrower in the request 476. According to the Mortgage Broker Practices Act (MBPA), which of the followi

ng documents MUST be maintained as part of the trust account record? A. A summary of the changes in the annual report B. A third party deposit register C. A quaterly trial balance D. A ledger for each subaccount 477. Under the Fair Credit Reporting Act (FCRA), when does a consumer have acces s to the consumer's credit report? A. As soon as it is prepared by the credit reporting agency B. Every 25 months C. When the consumer makes a written request for it D. When the consumer's credit has been repaired 478. Under the Mortgage Broker Practices Act (MBPA), when must a designated brok er or loan originator notify the Department of Financial Insitutions when there is a change in his or her residential address? A. Verbally within 24 hours B. In a form prescribed by the department within 30 days C. In a form prescribed by the department within 45 days D. When renewing a license 479. Which of the following documents must be retained by a creditor for 25 mont hs to comply with the Equal Credit Opportunity Act (ECOA)? A. Customer inquiries in paper or electronic form regarding the interest rates offered by the creditor 93 B. Customer inquiries in paper or electronic form regarding the various savings products offered by the creditor C. Written statements from applicants alleging violation of the Equal Credit Opportunity Act D. Written complaints from applicants regarding the customer support offered by the creditor 480. According to the Mortgage Broker Practices Act (MBPA), a trust account is o pened in the name of the: A. bank B. mortgage broker licensee C. third-party provider D. borrower 481. A mortgage broker provides origination services and brokers the loan to a l ender. The mortgage broker charges the borrower a uniform fee for the origination servi ces as well as reimbursement of credit reporting and appraisal charges. All charges are disclosed to the customers. Which of the following statements is CORRECT? A. The mortgage lender is in violation of the Real Estate Settlement Procedures Act (RESPA). B. The lender is in violation of the Real Estate Settlement Procedures Act (RESPA). C. Both are not in violation of the Real Estate Settlement Procedures Act (RESPA). D. Both are in violation of the Real Estate Settlement Procedures Act (RESPA). 482. Under the Mortgage Broker Practices Act (MBPA), which of the following task s does a loan originator NOT perform? A. Negotiates terms and rate of interest of a mortgage loan with a lender B. Performs administrative tasks for a broker regarding mortgage loans

C. Examines documents of the residential property borrower intends to buy D. Inspects the residential property a borrower intends to buy for structural defects 483. The Special Information Booklet contains information regarding: A. real estate settlement services B. final settlement costs C. the adjustable and fixed interest rates D. credit score required to obtain a loan 94 484. A real estate company encouraged its employees to establish a shell company with no assets or business operation and use it to purchase a title company that is p artly owned by the real estate company. The shell company distributed profits from the title company to the employees of the real estate company based on the number of transactions that they referred to the title company. How did the real estate company violate the Real Estate Settlement Procedures Act (RESPA)? A. Distribution of profits based on the referrals is a violation of the Real Est ate Settlement Procedures Act (RESPA) B. Distribution of profits by a title company to employees of real estate companies is a violation of the Real Estate Settlement Procedures Act (RESPA) C. The employees of the real estate company are not allowed to have ownership in a company where the real estate company has part or full ownership D. Employees of any settlement services company are not allowed to have ownership in other settlement service companies 485. According to the Consumer Loan Act (CLA), which of the following is NOT a requirement of an open-end loan? A. A borrower may obtain additional advances of money from time to time. B. A borrower may pay off the loan without prepayment penalties. C. The interest must not exceed 25% per annum. D. The borrower must use the money for residential loan purposes. 486. An applicant wants to borrow $175,000. The mortgage broker offers an intere st rate of 6.75% and pre-paid finance charges (closing costs) of $1,500. What would be t he APR on this offer for a 25-year fixed rate mortgage? A. 6.65% B. 6.75% C. 6.835% D. 6.845% 487. According to the Mortgage Broker Practices Act (MBPA), what must immediatel y follow the loan originator's name on solicitations, business cards, advertisemen ts, and loan applications? A. License number B. Business address C. Director s signature D. Mortgage broker's name 488. Under the Fair Housing Act (FHA), which of the following actions constitute s discrimination? A. Refusal by a lender to grant a loan because of poor employment history. 95 B. Refusal by a lender to grant a loan because the applicant is unable to pay th e

installments. C. Informing a prospective buyer of the drawbacks of the house. D. Communicating to a prospective buyer that they would not be comfortable in the neighborhood because of their familial status. 489. A loan originator wants to offer continuing education courses on the mortga ge broker industry. According to the Mortgage Broker Practices Act (MBPA), which of the following is NOT a factor in determining the approval for the courses? A. The qualification of the loan originator to offer the courses B. The location at which the courses will be offered C. The status of the courses in the past D. The content of the courses 490. When an applicant applies for a real estate loan, which of the following in formation if asked is a violation of the Equal Credit Opportunity Act (ECOA)? A. The religion of the borrower B. The income of the borrower C. The residence of the borrower D. The assets of the borrower 491. Under the Mortgage Broker Practices Act (MBPA), if the services of a design ated broker are terminated, within how many business days must the mortgage broker ap point a new designated broker? A. 3 B. 5 C. 15 D. 30 492. A mortgage broker entered into a lock-in agreement with an applicant to pro vide a residential loan at an interest rate of 5.0% per annum for 30 years. During the lock-in period, the interest rates offered by the lender increased by 0.5%. What should be the interest rate for the loan? A. 0.5% B. 4.5% C. 5.0% D. 5.5% 493. According to the Mortgage Broker Practices Act (MBPA), which of the followi ng documents MUST be displayed in the mortgage broker's place of business? A. Current listing of third-party providers 96 B. License of the mortgage broker C. Copy of continuing education certificates D. Copy of the mortgage broker rate sheets 494. Which of the following disclosures itemizes all closing costs and must be a vailable to the borrower at least one day before closing and/or must be given to the borr ower at closing? A. Title document B. Truth In Lending C. Good Faith Estimate D. HUD-1 Settlement Statement 495. A lender has approved a 30-year mortgage for $300,000 at a fixed interest r ate of 6%. The pre-paid finance charge for the mortgage is $2500. What is the amount fi

nanced for this mortgage? A. $282,000 B. $297,500 C. $300,000 D. $302,500 496. According to the Mortgage Broker Practices Act (MBPA), trust funds held by a mortgage broker MUST be: A. received by the mortgage broker as cash B. provided to the mortgage broker only by the borrower C. disbursed by the closing agent to the mortgage broker D. received by or on behalf of a borrower 497. If the Private Mortgage Insurance (PMI) is paid by the lender, the lender M UST provide a written notice to the borrower stating the: A. differences between lender-paid and borrower-paid PMI B. ways in which a yield spread premium affects the PMI C. advantages of lender-paid PMI D. cancellation date of the PMI 498. Under the Mortgage Broker Practices Act (MBPA), how many years of experienc e lending or originating residential mortgage loans MUST a person have to become a designated broker? A. 2 B. 3 C. 4 D. 5 97 499. In order to comply with the Equal Credit Opportunity Act (ECOA), which of t he following information CANNOT be obtained from an applicant for the purpose of extending credit? A. Applicant's country of origin B. Sex of the applicant C. Number of dependents D. Intention to have children 500. Whose location must be in the state of Washington for a mortgage broker transaction to be affected by the Washington Mortgage Broker Practices Act (MBPA )? A. Mortgage broker B. Borrower C. Third-party provider D. Independent contractor 501. A real estate broker has rented an office space from a lender. The lender h as agreed to let the real estate broker rent the office at no cost as long as the broker r efers a fixed number of clients to the lender. Which of the following statements about thi A. Only the real estate agent is in violation of the Real Estate Settlement Procedures Act (RESPA). B. Only the lender is in violation of the Real Estate Settlement Procedures Act (RESPA). C. Both the lender and the real estate agent are in violation of the Real Estate Settlement Procedures Act (RESPA). D. Both the lender and the real estate agent are not in violation of the Real Es tate Settlement Procedures Act (RESPA). 502. Under the Mortgage Broker Practices Act (MBPA), which of the following documents is enough to make an application for refinance?

A. Lock-in agreement B. Bank statement C. Income proof D. Credit report 503. The HUD-1 settlement statement is also known as the: A. credit statement B. closing statement C. operating income statement D. real estate settlement statement 98 504. A title company enters into agreements with mortgage brokers to offer reduc ed title fees to borrowers. Which company is in violation of the Real Estate Settlement Procedures Act (RESPA)? A. Only the title search company B. Only the mortgage broker C. Both title company and the mortgage broker are in violation D. Neither the title company nor the mortgage brokers are in violation 505. Which or the following acts will NOT violate the Mortgage Broker Practices Act (MBPA)? A. Signing the borrower's name to loan documents for the borrower B. Disposing of original loan documents 26 months after closing C. Charging an undisclosed fee to attend closing D. Providing false information to a lender 506. Which of the following fees paid to the mortgage broker do NOT constitute borrowers' pre-paids? A. Escrow reserve B. Per diem interest C. Hazard insurance D. Mortgage broker fees 507. According to the Mortgage Broker Practices Act (MBPA), who is responsible f or maintaining the original loan files and documents of a borrower? A. Loan originator B. Branch manager C. Mortgage broker D. Designated broker 508. Which of the following actions are unlawful under the Fair Housing Act? A. Asking a sales price higher than market prices B. Making structural changes to a dwelling before sale C. Advertising the sale of a dwelling only in the local newspaper D. Refusing to sell a dwelling after a bona fide offer has been made 509. According to the Mortgage Broker Practices Act (MBPA), a cease and desist o rder issued by the Department of Financial Institutions is an order to: A. stop conducting business or a specific practice B. close the trust account and refund all monies to borrowers C. file for bankruptcy and surrender the business to the department 99 D. pay out claims or increase surety bonds 510. A home builder advertises that it will finance the homes it builds. Which o f the following information will need to be provided in the same advertisement to sati sfy the Truth in Lending Act (TILA)? A. The annual percentage rate B. The repayment period C. The down payment amount D. No additional information is required

511. According to the Mortgage Broker Practices Act (MBPA), on behalf of how man y mortgage brokers can a loan originator take an application for a single applican t at a time? A. 1 B. 3 C. 5 D. 10 512. According to the Mortgage Broker Practices Act (MBPA), the Mortgage Broker must keep the original mortgage files for a minimum of how many months? A. 6 B. 10 C. 18 D. 25 513. According to the Mortgage Broker Practices Act (MBPA), when is a licensed mortgage broker liable for any conduct violating chapter 19.146 RCW by the desig nated broker or loan originator? A. When they share the same license B. When they are engaged by the same borrower C. When the designated broker or loan originator are employed or engaged by the licensed mortgage broker D. When the surety bond is taken out only by the mortgage broker 514. The Truth in Lending Disclosure Statement (TIL) is: A. a commitment from the lender to the borrower to lend B. a contract for credit between the borrower and the lender C. an agreement between the mortgage broker and the lender D. an estimate of the total costs of borrowing a particular amount 100 515. An applicant was offered four mortgage plans for a 30-year fixed interest l oan for a principal amount of $200,000. Which of the following options offers the lowest A PR for the applicant? Loans Option 1 Option 2 Option 3 Option 4 Interest rates 6.0% 6.25% 6.50% 6.75% Discount points 4% 3% 2% 1% A. Option 1 B. Option 2 C. Option 3 D. Option 4 516. According to the Mortgage Practices Act (MBPA), which statement regarding a loan originator holding an inactive license is NOT CORRECT? A. The loan originator must complete the annual continuing education requirement. B. The loan originator may be subject to the Department of Financial Institution 's (DFI) enforcement authority C. The loan originator must pay the annual renewal fee. D. The loan originator may originate loans for a licensed mortgage broker. 517. Which of the following options is an alternative for piggyback second mortg age? A. Buying a second home B. Taking a home equity loan C. Applying for a tax deduction D. Acquiring mortgage insurance 518. According to the Mortgage Broker Practices Act (MBPA), which statement regarding a Good Faith Estimate (GFE) is CORRECT?

A. It is not required to contain itemized costs. B. It is provided when the actual costs are not available. C. It guarantees the interest rate and the terms of the loan. D. If it is provided, a settlement statement is not required. 519. When offering an adjustable rate loan product, a mortgage broker is require d to disclose to a borrower all of the following EXCEPT: A. the annual percentage rate B. the annual percentage rate may increase during the plan C. the maximum possible interest rate for the credit obligation D. the maximum possible interest rate for the next 12 months 101 520. Which of the following dwellings is an example of a multi-family dwelling? A. Motel B. House C. Mobile Home D. Condominium 521. According to the Real Estate Settlement Procedures Act (RESPA), which of th e following information has to be the most prominent in the Good Faith Estimate (G FE) document? A. Name of loan originator B. Name of lender C. Identification of property D. Estimated closing costs 522. According to the Mortgage Broker Practices Act (MBPA), what information regarding advertisements must the mortgage broker retain? A. Name of the editor of the publication B. Word count of the script used for advertising C. The number of times an advertisement was published D. Name of the publication and the date on which the advertisement was published 523. Which of the following documents must contain the same itemized fees as in the HUD-1 settlement statement? A. Rate lock agreement B. Model disclosure form C. Good Faith Estimate (GFE) D. Adjustable Rate Mortgage Disclosure (ARM) 524. A title company gives tickets to professional sporting events to certain mo rtgage companies. Which company is in violation of the Real Estate Settlement Procedure s Act (RESPA)? A. The title company only B. The mortgage company only C. Both companies are in violation D. Neither company is in violation 525. According to the Mortgage Broker Practices Act (MBPA), which statement regarding an advertisement by a mortgage broker is CORRECT? A. It may use the words 'best' and 'lowest' for advertised rates. B. It must include the Truth in Lending disclosure. 102 C. It must state the annual percentage rate. D. It may use an official-looking emblem. 526. Which of the following statements is true about a stated income stated asse ts loan? A. Assets are disclosed and only income is verified B. Income is disclosed and only assets are verified

C. Both income and assets are disclosed and verified D. Both income and assets are disclosed but not verified 527. Under the Mortgage Broker Practices Act (MBPA), a loan originator's license may be revoked if the loan originator: A. changes the business location B. files for personal bankruptcy C. provides services as an independent contractor D. engages in business outside the state of Washington 528. According to Regulation P implementing the Gramm-Leach-Bliley Act (GLBA), which of the following information about a consumer constitutes publicly availab le information? A. Income B. Payment history C. Credit card purchases D. Assessed property values 529. The examination report on a mortgage broker licensee's business submitted b y an independent certified professional is found to be insufficient. According to the Mortgage Broker Practices Act (MBPA), the Department of Financial Institutions may: A. revoke the license of the mortgage broker B. schedule an examination of the mortgage broker business C. request the most recent annual report from the mortgage broker D. require the independent certified professional to do a reexamination 530. According to the Truth In Lending Act (TILA), what is the maximum tolerance if the finance charges are understated for refinancing a residential mortgage trans action? A. 5 B. 50 C. 100 D. 150 103 531. A person applies for a mortgage broker license in the state of Washington. Under the Mortgage Broker Practices Act (MBPA), the number of loan originators the applica nt intends to appoint in the first year of business will determine: A. the minimum number of offices the applicant can open for mortgage business in the first year of business B. the minimum number of designated mortgage brokers who have to be appointed for the business C. the minimum dollar amount for the surety bond the applicant has to submit to the director along with the application D. the minimum dollar amount the owner of the applicant's mortgage business should invest in the business 532. Under an adjustable rate mortgage loan, the monthly payment is subject to c hange when there is a change in the loan: A. discount points B. interest rates C. origination fee D. application fee 533. According to the Mortgage Broker Practices Act (MBPA), the written commitme nt given by a lender for a loan must: A. describe all third-party services required and their costs B. state the brokerage fees to be charged by the mortgage broker

C. be on the terms and conditions agreed by the borrower and mortgage broker D. be signed by the borrower in not less than 3 business days from the date of receipt 534. The closing costs for a mortgage loan are provided in a Good Faith Estimate (GFE) as: A. itemized charges as percentages of loan amount B. total costs as a consolidated dollar amount C. total costs as a percentage of loan amount D. itemized charges as dollar amounts 535. A mortgage broker offers a 15 year fixed rate mortgage on a purchase price of $200,000. The interest rate is 6.50%, the applicant will pay 20% down, and the t otal prepaid finance charges are $3500. What is the APR on this loan? A. 6.50% B. 6.72% C. 6.78% D. 6.86% 104 536. It is a violation of the Mortgage Broker Practices Act (MBPA) for an unlice nsed Computer Loan Information (CLI) provider to provide information about: A. rates of other lenders to a particular lender B. a borrower's contact details to the lenders C. contact details of lenders to the borrower D. a borrower's financial details to the lenders 537. The purpose of the Home Mortgage Disclosure Act (HMDA) is to: A. ensure that prices of homes are fairly quoted B. help lenders decide on mortgage interest rates C. provide borrowers with property listing and their prices D. identify possible discriminatory lending patterns 538. According to the Mortgage Broker Practices Act (MBPA), books and records maintained electronically should be in a format that is: A. Unable to be encrypted B. Changeable C. Non-erasable D. Internet accessible 539. A creditor has advertised an offer for a 30-year mortgage with a 10% down payment. According to the Truth In Lending Act (TILA), which of the following information must be provided in the same advertisement? A. The annual percentage rate B. The lending rate for other loans C. The estimate of settlement service charges D. The down payment requirements for other loans 540. According to the Mortgage Broker Practices Act (MBPA), which of the followi ng details must an annual report submitted by a mortgage broker licensee contain? A. Information about the total number of persons employed in all the branches of the licensee's business B. Information about the total number of closed loans originated by the mortgage broker C. A copy of a consumer report on the mortgage broker D. A copy the mortgage broker's license 541. An individual has applied for a loan at a mortgage company. According to th e Real Estate Settlement Procedures Act (RESPA), which of the following does NOT have t o be provided to the loan applicant within three working days? 105

A. Good Faith Estimate (GFE) B. Special information booklet C. Loan approval document D. Annual Percentage Rate 542. Under the Mortgage Broker Practices Act (MBPA), the cancellation of the sur ety bond of a mortgage broker will be effective for how many days from the date of r eceiving the cancellation notice from the surety? A. 20 B. 30 C. 40 D. 50 543. Which of the following documents provides the borrower with information abo ut pre-payment penalties? A. 1003 Loan Application Form B. HUD-1 Settlement Statement C. Good Faith Estimate Statement (GFE) D. Truth in Lending Disclosure Statement (TIL) 544. Each payment cycle during the amortization of a loan includes the payment o f: A. interest of the loan only B. a portion of the outstanding principal balance only C. interest of the loan and a portion of the outstanding principal balance D. interest of the loan, a portion of the outstanding principal balance and loan fees 545. According to the Mortgage Broker Practices Act (MBPA), offsetting entries t o each trust account ledger sheet MUST show the: A. interest rate B. loan amount C. property value D. name of payee 546. Under the Fair Credit Reporting Act (FCRA), a person may NOT obtain an investigative consumer report on a consumer unless the consumer has: A. defaulted on a loan B. moved to a new city C. applied for employment D. been informed in writing 106 547. According to the Mortgage Broker Practices Act (MBPA), if a licensed mortga ge broker wants to sell the mortgage business the mortgage broker must notify the Department of Financial Institutions: A. within 30 days from the date of the sale B. within 15 days from the date of the sale C. at least 30 days prior to the effective date of the sale D. at least 15 days prior to the effective date of the sale 548. Under the Gramm-Leach-Bliley Act (GLBA), how does the difference in classification of a person as a consumer or a customer affect the financial inst itution's privacy requirements? A. The consumer has to make a request to receive the privacy notice annually. B. Only the customer has the right to opt out of information sharing with third parties. C. The consumer is not entitled to receive any privacy notice from the financial institution. D. Only a customer is entitled to receive the financial institution's privacy no tice

automatically. 549. According to the Mortgage Broker Practices Act (MBPA), lines 808 through 81 1 of a Good Faith Estimate (GFE) have information regarding the: A. principal loan amount B. mortgage broker's compensation C. charges for structural modifications for the property D. advance paid by the borrower for third-party services 550. Under the Truth In Lending Act (TILA), how many business days are given to an applicant to rescind a credit transaction? A. 2 B. 3 C. 4 D. 5 551. [This question has been removed from the study guide.] 552. If a loan application is denied and third-party services have been provided , what MUST the mortgage broker provide to the borrower if the borrower requests it? A. The loan application form B. The money paid for appraisal report C. The money paid for credit report D. The documents paid for by the borrower 107 553. As specified in the Mortgage Broker Practices Act (MBPA), which of the foll owing actions CANNOT be taken against monies that are held in mortgage broker trust accounts? A. Withdrawals B. Garnishment C. Payment of third-party fees D. Disbursement 554. Under the Mortgage Broker Practices Act (MBPA), disclosure of the Good Fait h Estimate (GFE) is required of: A. real estate brokers B. mortgage attorneys C. residential mortgage brokers D. residential mortgage borrowers 555. An applicant compares the 4 mortgage programs given below for $150,000 at f ixed rate for 30 years. Loans Loan 1 Loan 2 Loan 3 Loan 4 Interest rates 7.75% 8% 7.65% 8.25% Loan fees $3,000 $1,000 $4,500 $0 Discount points 3% 2% 4% 0% Which loan offer provides the lowest APR? A. Loan 1 B. Loan 2 C. Loan 3 D. Loan 4 556. A loan originator licensee teaches continuing education courses. According to the Mortgage Broker Practices Act (MBPA), how many courses must the licensee teach t o receive credit for 2 continuing education courses? A. 1 B. 2 C. 4 D. 6

557. According to the Fair Housing Act (FHA), under what circumstances can a lan dlord refuse to rent a dwelling to a family with children under 18? A. If the other tenants object to it 108 B. If there is no school in that neighborhood C. If there is no facility for a play area in the neighborhood D. If the dwelling community qualifies as housing for older persons 558. According to the Mortgage Broker Practices Act (MBPA), when can a mortgage broker licensee withhold payments to a third-party provider? A. When there is a dispute between the lender and the borrower B. When the third-party provider has filed for personal bankruptcy C. When the borrower has delayed payments for third-party services D. When the licensee has a bona fide dispute with the third-party provider 559. According to the Truth In Lending Act (TILA), if a consumer exercises the r ight to rescind, within how many days must all the fees be returned to the consumer? A. 7 B. 10 C. 20 D. 30 560. Under the Mortgage Broker Practices Act (MBPA), if a mortgage broker licens e expires, within how many days MUST the license be renewed from the date of the license's expiration? A. 10 B. 15 C. 30 D. 45 561. The practice of disclosing an adjustable-rate mortgage as a fixed-rate mort gage is a violation that is termed: A. flipping B. refinancing C. underwriting D. bait and switch 562. A violation of the Mortgage Broker Practices Act (MBPA) (chapter 19.146 RCW ) is also a violation of which other act? A. Consumer Protection Act B. Fair Credit Reporting Act C. Administrative Procedure Act D. Alternative Mortgage Transaction Parity Act 109 563. Truth in Lending Act (TILA) is designed to protect consumers in: A. property offers B. credit transactions C. real estate practices D. property evaluation 564. A loan offer made by a lender for a 30-year fixed rate mortgage is given be low. Loan Amount Discount Points Loan Fee $165,000 2% $1,600 What is the amount financed for this loan? A. $160,100 B. $161,400 C. $161,668 D. $168,600 565. According to the Mortgage Broker Practices Act (MBPA), what action will the Department of Financial Institutions take against a loan originator who fails to

fulfill the continuing education requirement? A. Impose a penalty on the mortgage broker of the loan originator B. Deny the application for renewal of the loan originator's license C. Increase the number of continuing education courses to be completed D. Reject the loan originator's loans 566. In a fixed-rate mortgage loan, what percent of the original value of the pr operty must the homeowner's equity position reach for the Private Mortgage Insurance (P MI) to be cancelled automatically? A. 20% B. 22% C. 24% D. 26% 567. Who enforces the Mortgage Broker Practices Act (MBPA)? A. Department of Financial Institutions B. Code Reviser C. Thurston County District Court D. Department of Licensing 568. Under the USA Patriot Act, which of the following is NOT obtained by a mort gage broker from a borrower for customer identification purposes? 110 A. Passport number B. Credit card number C. Taxpayer identification number D. Alien identification card number 569. Under the Mortgage Broker Practices Act (MBPA), which of the following continuing education courses is required for designated brokers in their first y ear of receiving a license? A. Mortgage Math B. Washington State Laws C. Ethics in Mortgage Business D. Credit Reporting and Scoring 570. A borrower was offered an extended credit to purchase a $120,000 home. The borrower paid a down payment of $20,000 and the remaining amount was financed by the creditor. The lender also financed an additional amount of $5,000 which does not form part of the finance charges. According to the Truth In Lending Act (TILA), what amount should be shown under the category of Amount Financed in the disclosure statement? A. $95,000 B. $100,000 C. $105,000 D. $120,000 571. Under the Mortgage Broker Practices Act (MBPA), when a mortgage broker acce pts funds from the borrower for the payment of third-party services, the mortgage br oker MUST: A. close the loan for the borrower within thirty days of receiving the funds B. give the borrower a discount on the fee for the mortgage broker services C. give the borrower a written notice specifying the services the funds will be used for D. pay for the services of the third-party provider within five days of receivin g the funds

572. Under the Mortgage Broker Practices Act (MBPA), a rate-lock agreement provi ded to a loan applicant is NOT required to include the: A. lock-in fee B. mortgage broker fee C. discount point charges D. annual percentage rate 111 573. According to the Mortgage Broker Practices Act (MBPA), in order to originat e loans a loan originator MUST work from a: A. licensed law office B. licensed mortgage broker office C. real estate office D. loan originator's home 574. Under the Washington Usury Act, what is the maximum annual interest rate fo r a residential loan? A. 6% B. 10% C. 12% D. 16% 575. A mortgage broker offers a 30-year fixed mortgage for $150,000 at 5.5% inte rest. A loan discount fee of $1,500 and 3 points to the mortgage broker is also charged on the loan. What is the APR for this loan? A. 5.13% B. 5.35% C. 5.50% D. 5.87% 576. According to the Mortgage Broker Practices Act (MBPA), who can have independent contractors assist in the mortgage broker's business? A. Loan originator B. Mortgage broker C. Registered agent D. Designated broker 577. According to the Consumer Credit Protection Act, Congress has found that th e awareness of the costs of credit by consumers results in: A. taking only car loans B. the informed use of credit C. the disinclination to take loans D. taking credit only for home purchase 578. According to the Mortgage Broker Practices Act (MBPA), which statement regarding the authority of Department of Financial Institutions in an investigat ion is CORRECT? A. It cannot charge a fee when no violation has occurred B. It cannot issue a directive to present documents 112 C. It has to give advance notice when required D. It can hire attorneys whenever required 579. According to the Truth In Lending Act (TILA), which of the following charge s should be included in the calculation of the annual percentage rate for a closeend credit? A. Title fees B. Appraisal fees C. Credit report fees

D. Loan origination fees 580. Under the Mortgage Broker Practices Act (MBPA), to apply for a residential mortgage broker license, a person has to appoint a: A. loan processor B. loan originator C. real estate broker D. designated broker 581. A rate-lock agreement is a written commitment to a borrower from: A. a lender to fund a loan B. a mortgage broker to fund a loan C. a mortgage broker to provide an interest rate for a time period D. a mortgage broker to obtain a lender 582. According to the Mortgage Broker Practices Act (MBPA), a mortgage broker is permitted to charge a fee of up to a maximum of three hundred dollars even thoug h a borrower fails to close on the loan from the lender through no fault of the mort gage broker when the: A. preparation of document costs does not exceed that amount B. borrower and mortgage broker sign a brokerage agreement C. borrower is required to pay the amount to third-party providers D. lender has committed for a loan on terms agreed by the borrower 583. Which of the following statements regarding the Good Faith Estimate (GFE) i s CORRECT? A. Not every item in the form must have a fee. B. Fees paid outside closing must not be disclosed. C. Fees that are subject to change must not be included in the GFE. D. Total estimated monthly payments must not change on the closing day. 113 584. An applicant obtains offers for a 30 year fixed interest loan for a princip al amount of $100,000 from 4 different lenders. Which of the following lenders offers the hig hest APR for the applicant? Loans Lender 1 Lender 2 Lender 3 Lender 4 Interest rates 6.0% 6.25% 6.50% 6.75% Discount points 4% 3% 2% 1% A. Lender 1 B. Lender 2 C. Lender 3 D. Lender 4 585. According to the Mortgage Broker Practices Act (MBPA), what is a written commitment from a lender on the same terms and conditions agreed to by the borro wer and mortgage broker? A. A written agreement between a loan originator and third-party service provide r containing mutually acceptable fees for third-party services B. A written agreement between a loan originator and borrower containing mutually acceptable loan terms and conditions as found in the signed Good Faith Estimate (GFE) C. A written agreement between a loan originator and mortgage broker containing mutually acceptable loan terms and conditions as found in the signed Good Faith Estimate (GFE) D. A written agreement between a mortgage broker and lender containing mutually acceptable loan terms and conditions as found in the signed Good Faith Estimate (GFE) 586. When is a Private Mortgage Insurance (PMI) disclosure provided to a borrowe r?

A. At the time of closing a loan B. While accepting a loan application C. After the first month payment for PMI is received D. When the loan amount reaches 80% of the property sale price 587. According to the Mortgage Broker Practices Act (MBPA), disclosures do NOT n eed to be provided to the borrower when which of the following occurs within three d ays of the loan application? A. Only a credit report on a consumer was obtained for refinancing a loan B. Using a borrower's current loan information for soliciting business C. A loan application is cancelled and trust funds were not received D. A loan is table funded by a mortgage broker 114 588. Under the USA Patriot Act, which account is established to receive deposits from a foreign financial institution? A. Savings B. Current C. Correspondent D. Payable-through 589. Under the Mortgage Broker Practices Act (MBPA), what is the minimum number of years of experience in lending or originating mortgage loans must a person have to qualify to become a designated broker? A. 1 B. 2 C. 3 D. 5 590. According to the Truth in Lending Act (TILA), which of the following disclo sure information is related to a Fixed Interest Rate credit plan? A. The frequency of changes in the annual percentage rate B. The possibility of changes in the payment amount over time C. The index used in determining the rate adjustments and source of information on the index D. The interest rate that will be offered for the duration of the credit 591. A licensed mortgage broker files an application for the appointment of a di fferent designated broker. The licensed mortgage broker fails to meet the requirement of the good standing review. Under the Mortgage Broker Practices Act (MBPA), what recou rse does the licensed mortgage broker have to request the department to reconsider t he application? A. Request a brief adjudicative proceeding B. File an application for the appointment of another designated broker C. Request the Mortgage Broker Commission to endorse the application D. Submit the evidence having obtained a surety bond to prove financial responsibility 592. A mortgage broker has taken a residential mortgage loan application when: A. a mortgage broker has discussed terms and conditions with an applicant B. moneys are received from an applicant for third-party provider services C. a mortgage broker has interviewed an applicant by telephone and pulled the applicant's credit report D. applicant a mortgage broker has provided a Good Faith Estimate (GFE) to an applicant 115

593. A mortgage company charged customers $15 more than the actual cost of title fees. The mortgage company paid the title company. The mortgage broker refunded $15 to the borrower. Which of the two companies violated the Real Estate Settlement Procedu res Act A. Only the title company is in violation B. Only the mortgage company is in violation C. Both the title company and the mortgage company are in violation D. Neither the title company nor the mortgage company are in violation 594. Under the Consumer Loan Act (CLA), which of the following methods is used t o compute interest payable on a loan by applying the annual percentage interest ra te to the unpaid balances of the principal of the loan outstanding for the time outstandin g with each payment? A. Add-on method B. Simple interest method C. Compound interest method D. Payment and amortization method 595. Which of the following statements is TRUE about a no-ratio loan? A. Assets are not disclosed B. Employment is not disclosed C. Income is not used in qualifying the borrower D. Calculates how much debt the borrower can handle 596. According the Mortgage Broker Practices Act (MBPA), a licensed mortgage bro ker may apply for branch office licenses for: A. only one branch in Washington B. only multiple branches in Washington C. multiple branches in Washington or other states D. one branch in Washington and only one branch in other states 597. According to Regulation P implementing the Gramm-Leach-Bliley Act (GLBA), which of the following entities are required to comply with the Privacy Rule? A. A trustee of trusts whose beneficiaries are individuals B. A trustee who is required to transfer money to a beneficiary C. A sponsor of an employee benefit plan of which a customer is a participant D. A financial institution that provides financial products or services to consu mers 116 598. According to the Mortgage Broker Practices Act (MBPA), an examination of a mortgage broker's business by the Department of Financial Institutions at the bu siness location does NOT include: A. counseling B. exit meeting C. on-site review D. preexamination 599. According to the Truth In Lending Act (TILA), what form of disclosure to th e applicant is NOT acceptable? A. By telephone B. By fax C. In writing, delivered by regular mail D. In writing, hand delivered 600. Under the Mortgage Broker Practices Act (MBPA), a non-exempt computer loan information (CLI) provider who submits a loan application to a mortgage broker o r

assists an applicant in the completion of a loan application MUST: A. possess a separate loan originator or mortgage broker license B. possess a mortgage lender license C. notify the department of financial institutions about the identity of the len der D. notify the department of financial institutions about the identity of the borrower 601. Uniform Residential Loan Application Form submitted by a loan applicant is a legal document that has to be maintained as part of the record-keeping requirement by the: A. third-party provider B. loan originator C. mortgage broker D. property seller 602. Under the Mortgage Broker Practices Act (MBPA), which of the following documents is a prerequisite before a mortgage broker can solicit or contract wit h the public? A. A loan application from the lender B. A lock-in agreement with the lender C. A loan brokerage agreement with a lender D. A disclosure from the lender containing annual percentage rate 603. According to the Escrow Agent Registration Act, an escrow transaction is de fined as a 'split escrow' when: 117 A. two or more titles of property are held in an escrow account B. escrow agent works with more than one mortgage broker C. two or more escrow agents close the escrow transaction D. an escrow account represents more than one borrower 604. A lender charges the borrower 3 discount points on the loan amount of $100, 000 and no other charges for a fixed rate loan. Additionally, the broker charges a 1 poi nt mortgage broker fee. How much money does the borrower have to pay to close the loan? A. $0 B. $1,000 C. $3,000 D. $4,000 605. According to the Mortgage Broker Practices Act (MBPA), which of the followi ng fees is termed as prepaid escrowed costs of ownership? A. Lock-in fees B. Appraisal fees C. Insurance fees D. Loan originator fees 606. What is the minimum amount of a home's appraised value required to be paid to avoid taking Private Mortgage Insurance (PMI)? A. 10% B. 20% C. 25% D. 30% 607. According to the Mortgage Broker Practices Act (MBPA), which information do es NOT need to be provided in a lock-in agreement? A. The rates of other lenders B. The fee for discount points C. Duration of the loan repayment period

D. Duration for which the rate is available 608. Which of the following methods of disclosure does NOT meet the requirements of the Equal Credit Opportunity Act (ECOA)? A. E-mail B. Telephone C. Mailed letter D. Faxed letter 118 609. A loan originator receives funds from a borrower to be deposited in a trust account. Under the Mortgage Broker Practices Act (MBPA), within how many business days should the funds be transferred to the licensed mortgage broker? A. 1 B. 3 C. 5 D. 7 610. A title insurance company provides a computer to a mortgage broker. The com puter is used to transmit electronic documents from the mortgage broker's office to th e title insurance company. Which of the following statements about this situation is CORRECT? A. The title insurance company is in violation of the Real Estate Settlement Procedures Act (RESPA). B. The mortgage lender is in violation of the Real Estate Settlement Procedures Act (RESPA). C. Both are in violation of the Real Estate Settlement Procedures Act (RESPA). D. Neither is in violation of the Real Estate Settlement Procedures Act (RESPA). 611. If a mortgage broker uses the services of an independent contractor, under the Mortgage Broker Practices Act (MBPA), which of the following tasks is a responsi bility of the mortgage broker? A. To provide employment benefits to the contractor B. To supervise the services provided by the contractor C. To withhold federal income taxes from the contractor's pay D. To pay third-party fees incurred by the contractor 612. Within how many days of receiving a mortgage loan application should a mort gage broker provide the applicant with the Special Information Booklet? A. 1 B. 3 C. 5 D. 6 613. For a fee, a realtor offers a mortgage company the names and telephone numb ers of all the people who attended an open house. Which of the following statements is CORRECT? A. Only the realtor is in violation of the Real Estate Settlement Procedures Act (RESPA) B. Only the mortgage company is in violation of the Real Estate Settlement Procedures Act (RESPA) 119 C. Both the mortgage company and the realtor are in violation of the Real Estate Settlement Procedures Act (RESPA) D. Neither the mortgage company nor the realtor are in violation of the Real Estate Settlement Procedures Act (RESPA) 614. A borrower s loan has been declined by the lender because of insufficient bor rower

income. Which of the following acts by the mortgage broker will NOT violate the Mortgage Broker Practices Act (MBPA)? A. Increase the borrower s income and submit the loan to the same or another lender B. Increase the borrower s income to the level required by the lender and resubmit the loan to the lender C. Include income from the borrower s children without adding them to the loan and resubmit the loan D. Include the spouse's income, add the spouse as a co-borrower, and refer the loan package to a different lender 615. What does a loan originator use to find out the estimated value of a proper ty, based on an analytical comparison of similar saleable property? A. An appraisal B. A market survey C. An area survey D. A cost-benefit analysis 616. Under the Mortgage Broker Practices Act (MBPA), when a mortgage broker licensee files for bankruptcy, within how many days MUST the mortgage broker not ify the Department of Financial Institutions? A. 10 B. 15 C. 20 D. 25 617. According to the Gramm-Leach-Bliley Act (GLBA), under what circumstances is a mortgage broker permitted to provide nonpublic personal information to a third-p arty provided the third-party signs a contractual agreement to maintain the confident iality of the information? A. For use in marketing strategy B. When there is a time limit on use C. If the customer has defaulted on payment D. When the financial institution needs to refinance the mortgage 120 618. A borrower provides funds to a loan originator. According to the Mortgage B roker Practices Act (MBPA), the loan originator MUST transfer the funds to the license d mortgage broker within: A. 1 business day B. 3 business days C. 10 business days D. 30 business days 619. Which of the following is regulated by the Real Estate Settlement Procedure s Act (RESPA) and Regulation X? A. Real estate broker practices B. Trust accounts in Washington C. Prohibition against unearned fees D. Lending practices of state-chartered banks 620. The Department of Financial Institutions determines that a mortgage broker licensee has not maintained good standing. Under the Mortgage Broker Practices Act (MBPA) , which of the following reasons could be a cause for the determination? A. The mortgage broker's designated broker is not a principal B. The mortgage broker did not contract with third-party providers

C. The mortgage broker did not contract with an independent contractor D. The mortgage broker did not fulfill the required continuing education requirement 621. Which of the following forms does a mortgage broker use to record relevant financial information about an applicant who applies for a conventional one-to-f ourfamily mortgage? A. FNMA 216 B. FNMA 103A C. FNMA 1003 D. FNMA 8828 622. Which of the following practices by mortgage brokers is a prohibited practi ce? A. Offering credit from only one lender B. Referring a real estate agent to a customer for a fee C. Acting as a lender in the same transaction D. Charging higher interest rate than other brokers in the neighborhood 623. According to the Consumer Loan Act (CLA), what is the maximum interest rate that can be charged per annum? A. 15% 121 B. 20% C. 25% D. 30% 624. The offers made by two lenders for a 30-year fixed mortgage for $250,000 ar e shown below. What is the APR of the lower offer? Lender Lender 1 Lender 2 Interest rates 7% 6.75% Mortgage Broker fees $4,000 $5,500 Discount points 4% 6% A. 7.58% B. 7.61% C. 7.71% D. 7.72% 625. According to the Mortgage Broker Practices Act (MBPA), if a loan originator fails to comply with license renewal requirements, the loan originator MUST: A. apply for an interim loan originator license B. surrender the existing license and apply for a new license C. work as an independent contractor for a licensed mortgage broker D. apply for renewal of the license after 6 months from the expiration date 626. Under the Home Mortgage Disclosure Act, what document is provided by a financial institution after a complete analysis of the creditworthiness of the a pplicant? A. Credit request B. Loan application C. A request for pre-approval D. Home mortgage application 627. According to the Mortgage Broker Practices Act (MBPA), how is a mortgage broker's license application fee calculated? A. As an hourly rate B. As a flat rate per license C. 1% of the annual volume of business D. Hourly rate and 1% of the annual volume of business 628. If state laws prohibit any of the regulations in the Equal Credit Opportuni ty Act (ECOA), which of the following statements is CORRECT? A. The state law will preempt the Equal Credit Opportunity Act

B. The Equal Credit Opportunity Act will preempt the state law 122 C. The creditor can choose between the two laws D. The creditor can ignore both laws 629. According to the Mortgage Broker Practices Act (MBPA), a loan originator wo rking as an employee of an exempt mortgage broker is exempt from: A. having a loan originator license B. paying federal taxes on income C. being supervised by a designated mortgage broker D. being subject to the non-licensing provisions of the Mortgage Broker Practice s Act (MBPA) 630. Which of the following actions would be a violation of the Real Estate Sett lement Procedures Act (RESPA)? A. A lender charging a borrower a wire transfer fee B. A lender charging a borrower an attorney fee for legal services C. A lender paying its employee a bonus for generating new business D. A lender paying a fee to a real estate agent or developer for referring a borrower 631. According to the Mortgage Broker Practices Act (MBPA), withdrawal from a tr ust account can be made only to pay: A. the mortgage broker's compensation B. the down payment of a loan by a borrower C. claims for the mortgage broker's violations D. the charges for services of a third-party provider 632. Who is responsible for preparing the HUD-1? A. Loan originator B. Settlement agent C. Title insurance company D. Registered agent 633. Which of the following methods of paying an appraiser is a prohibited pract ice? A. Paying the appraiser fee only if the loan closes B. Paying a percentage of the approved loan amount C. Paying the appraiser before receiving the appraisal report D. Paying for the appraisal from trust funds 634. According to the Mortgage Broker Practices Act (MBPA), funds may be transfe rred between a borrower's subaccounts when: 123 A. the borrower has a split escrow account B. the borrower has chosen an adjustable rate mortgage C. a borrower has more than one third-party provider D. a borrower has more than one loan application pending 635. Under the Fair Credit Reporting Act (FCRA), which of the following statemen ts regarding information furnished to consumer reporting agencies is CORRECT? A. The information for the report should be provided by the consumer B. The duty to investigate consumer disputed information falls on the informatio n furnisher. C. The duty to investigate consumer disputed information falls on the consumer. D. Information furnishers may not provide negative information about consumers to a consumer reporting agency. 636. Under the Mortgage Broker Practices Act (MBPA), if the designated broker le aves a mortgage broker, within how many business days must the mortgage broker notify t

he Department of Financial Institutions? A. 5 B. 10 C. 15 D. 20 637. According to the USA Patriot Act, the procedures in place must enable a mor tgage broker to form a reasonable belief that it: A. knows the true identity of each customer B. ensures that the lender is protected against fraud C. makes a profit from foreign currency exchange D. does not have account holders who are not US citizens 638. According to the Mortgage Broker Practices Act (MBPA), a designated mortgag e broker can receive credit for one continuing education course by: A. successfully completing the written exam twice B. attending three mortgage broker commission meetings C. maintaining good standing with the Department of Financial Institutions D. being the designated broker for a minimum of three mortgage broker licensees 639. An attorney and a lender entered into an agreement in which the attorney s ca r loan payments are paid by the lender in return for the names of potential loan applic ants. Which of the following statements about this agreement is CORRECT? A. Only the attorney is in violation of the Real Estate Settlement Procedures Ac t (RESPA). 124 B. Only the lender is in violation of the Real Estate Settlement Procedures Act (RESPA). C. Both the lender and the attorney are in violation of the Real Estate Settleme nt Procedures Act (RESPA). D. Both the lender and the attorney are not in violation of the Real Estate Settlement Procedures Act (RESPA). 640. Under the Mortgage Broker Practices Act (MBPA), the fee paid by a borrower to a lender to reduce the interest rate of a residential mortgage loan is called: A. reimbursement B. discount points C. compensation D. table funding 641. In a mortgage loan transaction, the HUD-1 settlement statement is provided to the: A. buyer only B. lender only C. buyer and seller D. lender and third-party provider 642. A realtor sends clients to a mortgage broker. The mortgage broker pays the realtor for each client. Who is in violation of the Real Estate Settlement Procedures Ac t (RESPA)? A. Only the realtor is in violation B. Only the mortgage broker is in violation C. Both the realtor and the mortgage broker are in violation D. Neither the realtor nor the mortgage broker are in violation 643. A loan originator has been unable to secure a refinance loan for a borrower . Which

of the following will NOT violate the Mortgage Broker Practices Act (MBPA)? A. Provide the loan file to the borrower so he or she may apply for a loan elsewhere B. Charge the borrower a fee of $300 for services rendered C. Make the loan from personal funds and sell it on the secondary market D. Issue an adverse action letter 644. Which of the following documents itemizes all the settlement costs includin g lender charges? A. Agreement of sale B. HUD-1 form C. 10-03 form 125 D. Forbearance agreement 645. According to the Mortgage Broker Practices Act (MBPA), a loan originator ca n originate loans for a mortgage broker located out of the state of Washington if the mortgage broker: A. has a branch office in Washington B. is licensed under Washington law C. had been a resident of Washington for a minimum of 5 years D. has 5 years of experience in mortgage business 646. Under the Fair Housing Act, if a person believes that there has been discri mination in the sale of housing, the person may: A. initiate a civil action in the appropriate court B. notify the Department of Justice C. compel the seller to sell the house under the Equal Opportunities Act D. inform members of the public by publishing an article in the local paper 647. If the Department of Social and Health Services certifies a licensee as out of compliance with a support order, the Department of Financial Institutions will: A. immediately suspend the mortgage broker's license B. replace the mortgage broker's license with an interim license C. decide on the mortgage broker's license status after a hearing D. impose a fine on the mortgage broker to maintain the license 648. Which of the following reasons for denial of credit would be a violation of the Equal Credit Opportunity Act (ECOA)? A. Applicant's income is not adequate for the credit requirement B. Applicant's age is below the minimum required to sign contracts C. Applicant's marital status indicates likelihood of stoppage of employment D. Applicant's credit history indicates default in payments to other lenders 649. A designated broker is terminated. The mortgage broker is unable to appoint a different designated broker within the required time prescribed by the Departmen t of Financial Institutions. According to the Mortgage Broker Practices Act (MBPA), t he mortgage broker MUST: A. hire a third-party to function as a designated broker B. send a legal notice to the department informing about the delay C. request more time from the department D. seek an interim license from the department to function as the designated mortgage broker 126 650. According to the Real Estate Settlement Procedures Act (RESPA), a Good Fait h Estimate (GFE) MUST contain the:

A. terms of the Purchase and Sale Agreement B. Annual Percentage Rate C. charges from the providers that will be used during settlement D. contents of the mortgage broker demand letter 651. Under the Mortgage Broker Practices Act (MBPA), which of the following requirements must a person meet to bring a collection action for compensation re lated to a residential mortgage loan? A. Have at least 5 years of experience in mortgage broker service B. Reside in the state of Washington for at least 2 years C. Have a mortgage broker license D. Obtain permission from the director of the Department of Financial Institutio ns 652. When MUST a mortgage broker or loan originator provide redisclosures on a $250,000 residential mortgage loan? A. A mortgage broker initially discloses 1% of loan amount as mortgage broker fee. The HUD-1 statement shows a 2% of loan amount as mortgage broker fee. B. A mortgage broker initially discloses a $550 homeowner's insurance premium. The HUD-1 shows a $750 homeowner's insurance premium. C. A mortgage broker initially discloses $320 per month for property taxes. The HUD-1 shows a $350 per month for property taxes. D. A mortgage broker initially discloses an interim interest charge of $125. The HUD-1 shows an interim interest charge of $250. 653. A creditor has approved a 15-year mortgage for $225,000 at a fixed interest rate of 6%. The pre-paid finance charge is 1% of the mortgage amount. What is the amount financed for this mortgage? A. $211,500 B. $222,750 C. $227,250 D. $238,500 654. According to the Mortgage Broker Practices Act (MBPA) a trust account MUST be opened: A. only in a Washington securities institution B. only in the Washington branch of a federally insured financial institution C. at any location of a federally insured financial institution D. at any financial institution providing credit facilities 127 655. A homeowner's equity position reaches 20% of the original value of the prop erty. Which of the following statements is true pertaining to the cancellation of the Private Mortgage Insurance (PMI)? A. The lender must automatically cancel the PMI. B. Homeowner can request cancellation of the PMI. C. The PMI gets automatically cancelled after 30 days. D. The PMI gets cancelled 20 days after the request is submitted. 656. Under the Mortgage Broker Practices Act (MBPA), an application for a mortga ge broker license could be denied if the applicant had any license or authorization to do business under any similar statute of this or any other state revoked within how many years of filing the present application? A. 3 B. 5 C. 7 D. 10 657. What does a Credit Scoring System help to determine while evaluating a cons

umer credit application? A. A mortgage broker's fees B. The loan amount C. An applicant s creditworthiness D. The periodic repayment amount 658. According to the Mortgage Broker Practices Act (MBPA), a branch office of a mortgage broker business MUST: A. have a separate branch office license B. be in the same city as that of the main office C. have its own designated broker D. display the loan originator license 659. According to the Real Estate Settlement Procedures Act (RESPA), which of th e following relationships between a lender and a settlement service provider does NOT require disclosure on the Good Faith Estimate (GFE)? A. Provider is an associate of the lender B. Provider has an outstanding loan with the lender C. The lender and the provider use the same attorney for legal services D. The lender has repeatedly used the services of the provider in the last 12 months 128 660. Under the Mortgage Broker Practices Act (MBPA), a mortgage broker is requir ed to maintain copies of all documents and notes related to a residential mortgage loa n EXCEPT when the mortgage broker has: A. accepted a deposit from the borrower B. entered into a lock-in agreement with the borrower C. accepted a mortgage loan application from the borrower D. provided to the borrower an estimate of the cost of services 661. How many days prior to closing may a borrower request a copy of the HUD-1 settlement statement? A. 1 day B. 5 days C. 1 week D. 1 month 662. A mortgage company provides a real estate company complementary note pads w ith the real estate company s name printed on it. Which company is in violation of the Real Estate Settlement Procedures Act (RESPA)? A. The mortgage company B. The real estate company C. Both companies are in violation D. Neither company is in violation 663. A mortgage broker has hired a loan originator who works from home. The loan originator's home is considered the: A. mortgage broker's main office B. mortgage broker's branch office C. loan originator's main office D. loan originator's branch office 664. What are the criteria to qualify for a no documentation loan? A. High credit score B. Income and assets information C. At least two years of employment D. Employment, income, and assets information 665. According to the Mortgage Broker Practices Act (MBPA), if a designated brok er is

charged with a gross misdemeanor involving dishonesty or financial misconduct, w ithin how many business days must he or she notify the Department of Financial Institu tions? A. 10 B. 15 129 C. 21 D. 31 666. According to Regulation P implementing the Gramm-Leach-Bliley Act (GLBA), under what circumstances may a financial institution disclose nonpublic personal information about a consumer to any nonaffiliated third-party? A. If the consumer defaults on the loan B. If the value of the loan is less than $5,000 C. When the consumer is at least one year into the loan D. When the consumer is provided with an initial notice and an opt-out notice 667. According to the Mortgage Broker Practices Act (MBPA), when the Department of Financial Institutions finds irregularities in a licensee's business after an ex amination, which of the following may a mortgage broker do to avoid a penalty? A. Increase the amount of the surety bond B. Change the designated mortgage broker C. Respond to all directives by the department D. Conduct reexamination by an independent certified professional 668. A lender has advertised 7.25% APR in a newspaper advertisement. Which of the following information must be provided in the same advertisement? A. The payment period for the loan B. The finance charges for the loan C. No financial information is required D. Last date for the offer at the same rate 669. Under the Mortgage Broker Practices Act (MBPA), what role do the members of the Mortgage Broker Commission perform? A. Provide advice to the department on mortgage broker issues B. Accept applications from brokers interested in serving in the commission C. Resolve disputes regarding the determination of good standing D. Propose changes to the mortgage interest rates 670. According to the Real Estate Settlement Procedures Act (RESPA), which of th e following information is necessary for a pre-qualification to be converted to a federally related loan application? A. Proof of income B. Credit rating C. Property identification D. Current liabilities 130 671. According to the Mortgage Broker Practices Act (MBPA), under what circumstances can a licensed mortgage broker operate under a name other than the one in which the license is issued? A. By obtaining the written consent of the director to do so B. By giving an alias at the time of applying for the license C. By using the licensed name and the new name at the same time D. By sending a notification by mail to the director for use of the name 672. Which of the following amounts is included in the Truth in Lending Disclosu re Statement (TIL)? A. Finance charges

B. Down payment for the loan C. Rates offered by other lenders D. Details of other loans for the borrower 673. A lender has offered a 30-year $150,000 mortgage at 7% interest with 2 disc ount points and additional prepaid finance charges equal to 3% of the loan amount. Wh at is the APR on this mortgage? A. 7.30% B. 7.41% C. 7.52% D. 7.63% 674. According to the Mortgage Practices Act (MBPA), a loan originator licensee must display their license number on all of the following EXCEPT: A. on their website B. in their office C. on their business cards D. in their advertisements 675. Which of the following does a borrower have when he or she acquires another mortgage in addition to the first mortgage as a down payment? A. A tax credit B. A home equity loan C. A high credit score D. A private mortgage insurance (PMI) 676. A mortgage broker discloses the mortgage broker's fee as a percentage of th e loan amount. The borrower requests an increase in the loan amount. According to the 131 Mortgage Broker Practices Act (MBPA), the mortgage broker need not redisclose th e fees if they do NOT exceed: A. $300 B. $500 C. $750 D. $1,000 677. For monitoring compliance with the Equal Credit Opportunity Act (ECOA), whi ch of the following information CANNOT be asked by a creditor in an application for credit for purchase of a residential property? A. Age B. Sex C. Ethnicity D. Education 678. According to the Mortgage Broker Practices Act (MBPA), a licensed mortgage broker must have a trust account when: A. the loan is closed and funds are disbursed B. an attorney represents the borrower C. the licensee recieves funds from borrowers for third-party services D. the licensee provides information on loan terms and rates 679. According to the Real Estate Settlement Procedures Act (RESPA), whose responsibility is it to provide the special information booklet if a borrower ap plies for a residential mortgage loan? A. Attorney B. Real estate broker C. Title company D. Mortgage broker 680. According to the Mortgage Broker Practices Act (MBPA), the amount in the su

rety bond provided by an applicant for mortgage broker's license must be drawn in fav or of the: A. Surety B. Attorney General C. Insurance Commissioner D. Director of Financial Institutions 681. Which statement regarding a Truth in Lending Disclosure Statement (TIL) is NOT CORRECT? A. The tolerence of the APR on the TIL must be 1/2 percent. 132 B. The TIL must include any conditions for balloon payments. C. The TIL must include any late charge fees applicable to the loan. D. Only one TIL statement can be made for one closed loan. 682. What is the monthly payment for the mortgage offer given below? Mortgage Amount Mortgage Term Interest Rate $275,000 25 years 5.750% A. $1,522.13 B. $1,604.83 C. $1,647.93 D. $1,730.04 683. According to the Mortgage Broker Practices Act (MBPA), the ledger of trust accounts MUST be reconciled with the related: A. truth in lending disclosures and good faith estimates B. escrow accounts and settlement statements C. third party fees and third party billing statements D. bank statements and check registers 684. Under the Fair Credit Reporting Act (FCRA), which of the following actions constitutes an "adverse action"? A. Failure to authorize an account transaction at a point of sale B. Reduction in the amount of insurance for personal, family, or household purposes C. Refusal to extend additional credit if the applicant is in default D. Refusal to extend additional credit if the additional credit would exceed a previously established credit limit 685. According to the Mortgage Broker Practices Act (MBPA), a mortgage broker licensee must reconcile the funds in the trust account when: A. selling the business B. opening a branch office C. changing the business location D. terminating the services of the designated broker 686. A financial institution has given a home loan to a customer after the custo mer submitted the required form and papers to the financial institution. Under the G rammLeach-Bliley Act (GLBA), which of the following methods is the default means of delivering A. By mail 133 B. By telephone C. By advertising in the newspaper D. By posting on the financial institution's notice board 687. According to the Mortgage Broker Practices Act (MBPA), when can a mortgage broker licensee charge a fee that exceeds the fee initially disclosed to the bor rower? A. When the mortgage broker has filed for personal bankruptcy B. When the increase was not reasonably foreseen at the time of disclosure C. When the increase is not more than 10% of the initial disclosed amount

D. When the mortgage broker has paid the appraiser to obtain a particular opinio n of value 688. The finance charge for refinancing a residential mortgage is $1,200. The le nder has disclosed a different amount to the applicant. Which of the following disclosure amounts will violate the Truth In Lending Act (TILA)? A. $1,000 B. $1,190 C. $1,210 D. $1,300 689. Under the Mortgage Broker Practices Act (MBPA), who is required to sign the surety bond the mortgage broker maintains with the director of financial institu tions? A. The principal of the mortgage broker only B. The principal of the mortgage broker's business and the insurance company representative only C. The principal of the mortgage broker's business, the insurance company representative, and the mortgage broker only D. The principal of the mortgage broker's business, the insurance company representative, the mortgage broker, and the director only 690. In an adjustable rate mortgage loan, changes in interest rates are determin ed based on the: A. index and margin B. rate of inflation C. adjustment period D. accrued interest 691. According to the Mortgage Broker Practices Act (MBPA), which of the followi ng functions is a loan originator permitted to do? A. Accept checks made payable to the loan originator for third-party services B. Transfer funds from a borrower to a licensed mortgage broker 134 C. Receive a commission from the borrower for brokering a residential mortgage loan D. Charge compensation from a borrower for preparing documents for a loan 692. A borrower furnishes financial information in anticipation of a loan. Howev er, a property has not been identified. The borrower is NOT: A. eligible for a loan B. eligible for preapproval C. required to be given a Good Faith Estimate (GFE) D. required to be given a copy of the credit report 693. A mortgage broker offers a 15-year fixed rate mortgage for $150,000 at 6.00 % interest. The mortgage broker charges $2000 as the mortgage broker fee. What is the APR on this loan? A. 6.00% B. 6.12% C. 6.21% D. 6.52% 694. A Computer Loan Information (CLI) provider only provides information about loan terms and interest rates. The provider does not negotiate loan terms and interes t rates. If the provider is paid for this service by the borrower, according to the Mortgage Broker

Practices Act (MBPA), the CLI provider MUST: A. maintain disclosures as part of books and record keeping B. provide a loan applicant with HUD-1 Statement C. have a mortgage broker license D. appoint a designated broker 695. Private Mortgage Insurance (PMI) benefits the lender by ensuring that the: A. home is insured against fire, theft, and any natural hazards B. borrower may not apply for a second loan from another lender C. borrower has a fixed amount of money kept in an escrow account D. lender is protected against financial losses if the borrower defaults on payments 696. According to the Mortgage Broker Practices Act (MBPA), an advertisement off ering mortgage broker services CANNOT: A. use an official looking emblem B. display a company logo on the advertisement C. mention affiliates of the mortgage broker D. publicize current rates 135 697. An applicant has produced a bank statement that includes their spouse's nam e on the account. According to the Equal Credit Opportunity Act (ECOA), to apply for cred it within the limits of the applicant's own creditworthiness, who must sign the app lication A. Applicant only B. Spouse only C. Applicant and spouse D. Applicant and a co-signer 698. Under the Mortgage Broker Practices Act (MBPA), "discount points" are inclu ded in a Good Faith Estimate (GFE) as a percentage of the: A. monthly interest rate B. total interest amount C. principal amount D. loan amount