Chapter 9 — Self-Check Quiz

Twenty-six questions. Multiple choice and short answer, written in the style of the SAFE MLO test where the material is exam-relevant. Answers are in the collapsed block at the bottom — write yours down before you open it.

1. Under the TILA-RESPA rule, an application consists of the submission of how many specific items of information?

A. Four B. Five C. Six D. Seven

2. Which of the following is NOT one of the six items?

A. The consumer's Social Security number B. The property address C. A fully executed purchase contract D. The mortgage loan amount sought

3. A creditor receives all six items on a Tuesday. Its offices are open to the public Monday through Friday and closed Saturday and Sunday. No federal holiday falls in the period. Using the general definition of business day, the Loan Estimate must be delivered or placed in the mail no later than:

A. Wednesday of the same week B. Thursday of the same week C. Friday of the same week D. Monday of the following week

4. The creditor's obligation regarding the Loan Estimate is satisfied when the creditor:

A. Confirms the consumer has read it B. Delivers it or places it in the mail C. Obtains the consumer's signature on it D. Uploads it to the consumer's portal and receives a read receipt

5. Before the integrated disclosures, the definition of "application" included a seventh item. That item was:

A. The consumer's date of birth B. Any other information deemed necessary by the loan originator C. A signed borrower authorization D. The estimated closing date

6. A lender's internal policy states that a file is not an application until the borrower has uploaded thirty days of paystubs. A consumer has submitted all six items but no paystubs. Under the rule, has the creditor received an application?

A. No — the creditor may define its own application requirements B. No — verification documents are part of the definition C. Yes — the six items are the definition, and the creditor's additional requirements do not change it D. Yes, but only if the consumer also signs an intent to proceed

7. Under Regulation Z, the specific definition of business day counts:

A. All calendar days B. Monday through Friday only C. All calendar days except Sundays and federal legal public holidays D. Only days the creditor's offices are open

8. Which fee may a creditor impose on a consumer before the consumer has received the Loan Estimate and indicated an intent to proceed?

A. An application fee B. An appraisal fee C. A bona fide and reasonable fee to obtain the consumer's credit report D. A processing fee, if disclosed orally

9. A consumer receives a Loan Estimate and says nothing for five days. The creditor may:

A. Treat the silence as an intent to proceed and order the appraisal B. Not treat the silence as an intent to proceed C. Treat the silence as a withdrawal and close the file D. Impose an application fee after seventy-two hours

10. Short answer: List the six items in any order.

11. The Uniform Residential Loan Application is also known as:

A. Form 1004 B. Form 1003 C. Form 4506-C D. Form 1008

12. Which component of the current application is completed by the lender rather than by the borrower?

A. Borrower Information B. Additional Borrower C. Lender Loan Information D. Continuation Sheet

13. A borrower's monthly child support payment is disclosed in:

A. Section 1e, Income from Other Sources B. Section 2d, Other Liabilities and Expenses C. Section 3, Real Estate Owned D. Section 5, Declarations

14. Under Regulation B, before a creditor may consider alimony, child support, or separate maintenance as income, the applicant must be told that:

A. Such income is always counted at 75% of its face value B. Such income need not be revealed unless the applicant wants it considered C. Such income requires a three-year continuance D. Such income must be verified by the paying party

15. A \$10,000 cash gift from the borrower's parents, not yet deposited, is disclosed on the application in:

A. Section 2a, accounts B. Section 2b, other assets and credits C. Section 4d, gifts or grants D. Section 5, declarations

16. Section 6 of the Borrower Information component is:

A. The military service questions B. The demographic information C. The acknowledgments and agreements, including the borrower's certification D. The loan originator's identifying information

17. An application is taken face to face and the borrower declines to provide demographic information. The originator must:

A. Leave the section blank B. Note ethnicity, sex, and race on the basis of visual observation or surname C. Decline the application as incomplete D. Ask the borrower's real estate agent

18. Short answer: A creditor holds five of the six items and has been discussing a specific listed property with a borrower for a week. What is the disciplined loan officer's operating assumption, and why?

19. Which declaration is most directly implicated when a borrower's brother is fronting them the closing costs with an expectation of repayment?

A. The occupancy declaration B. The declaration about borrowing money for the transaction that is not disclosed on the application C. The declaration about outstanding judgments D. The declaration about co-signing or guaranteeing debt

20. A borrower truthfully answers "no" on day 5 to the declaration about applying for new credit on or before closing, then finances furniture on day 41. The best description of what happened is:

A. The borrower committed fraud at application B. The declaration was accurate when made and became false before closing, which is why it must be explained as a fifty-day promise rather than a one-time question C. The declaration does not apply to retail financing D. Nothing — declarations are only tested as of the application date

21. Which of the following documents in the initial disclosure package is generally required within three business days of application?

A. The Closing Disclosure B. The servicing disclosure statement C. The final title commitment D. The appraisal report

22. E-consent under the ESIGN Act is valid only if the consumer:

A. Initials a paper form at the closing table B. Consents in a manner reasonably demonstrating they can access the documents in the form in which they will be delivered C. Provides a mobile phone number D. Waives the right to paper copies permanently

23. An applicant affirmatively tells the creditor to stop work before any credit decision is made. The correct classification is:

A. Denied B. Withdrawn C. File closed for incompleteness D. Approved but not accepted

24. A loan officer decides a file will not work and marks it "withdrawn" without the borrower saying so. The principal problem is:

A. It is inefficient B. It converts the creditor's own credit decision into the applicant's choice, denies the applicant an adverse action notice and the reasons behind it, and misstates what the institution reports C. It requires a manager's approval D. There is no problem, provided the borrower is told by phone

25. Under Regulation B, an adverse action notice on a completed application must generally be provided within:

A. 3 business days B. 7 business days C. 30 days D. 90 days

26. Short answer: A creditor receives the sixth item on a Friday at 4:50 p.m. Name at least four separate disclosure obligations that this single event set in motion, and state the deadline they share.

Answer key **1. C — Six.** Name, income, Social Security number (to obtain a credit report), property address, an estimate of the value of the property, and the mortgage loan amount sought. **2. C — A fully executed purchase contract.** No contract, form, signature, or fee is part of the definition. This is the distractor the exam uses most often. **3. C — Friday of the same week.** Under the general definition, count business days after receipt: Wednesday is one, Thursday is two, Friday is three. **4. B — Delivers it or places it in the mail.** The standard is delivery or mailing, not the consumer's receipt. When receipt is *presumed* is a separate rule (Chapter 22). **5. B — Any other information deemed necessary by the loan originator.** The integrated-disclosure rule removed this catch-all for covered transactions, closing the loophole that let a creditor postpone the clock by declaring it needed one more thing. **6. C — Yes.** A creditor may require more before it will underwrite or commit. It may not require more before an application exists. **7. C — All calendar days except Sundays and federal legal public holidays.** Note that Saturday counts under this definition. The general definition (is the office open?) governs the three-business-day Loan Estimate delivery. **8. C — A bona fide and reasonable fee to obtain the consumer's credit report.** It is the only listed exception, and it is why credit can be pulled and charged for on day 1. **9. B — Not treat the silence as an intent to proceed.** Intent must be affirmatively communicated; the creditor may not treat a failure to respond as intent. **10.** Name; income; Social Security number (to obtain a credit report); property address; an estimate of the value of the property; the mortgage loan amount sought. Six words to hang it on: **name, income, number, address, value, amount.** **11. B — Form 1003** (Fannie Mae's number; Freddie Mac Form 65). Form 1004 is the appraisal report; Form 4506-C is the tax transcript request; Form 1008 is the underwriting transmittal. **12. C — Lender Loan Information.** It carries the qualifying arithmetic. A borrower who "found an error on the 1003" has frequently found the lender's math, not their own statement. **13. B — Section 2d, Other Liabilities and Expenses.** Support the borrower *pays* is an obligation and frequently never appears on a credit report. Support the borrower *receives* is income, in 1e. **14. B — Such income need not be revealed unless the applicant wants it considered.** **15. C — Section 4d, gifts or grants.** Sourcing and transfer rules belong to Chapter 12. **16. C — The acknowledgments and agreements.** It is a certification, and the form references the federal false-statements statute by name. It is not "the signature page." **17. B — Note ethnicity, sex, and race on the basis of visual observation or surname.** Never skip the section; never overwrite what a borrower supplied themselves. **18.** The operating assumption is that an application either already exists or is one sentence away, and the loan officer behaves accordingly — disclosing rather than arguing about the count. The property address is normally the last of the six to arrive, so a creditor discussing a specific listed property is very likely already holding it. A Loan Estimate issued early costs nothing; one issued late is a violation that cannot be cured by explanation. **19. B — The declaration about borrowing money for the transaction that is not disclosed on the application.** Borrowers rarely experience family money as borrowing. It changes the debt-to-income ratio, and it is what the large-deposit inquiry is designed to find. **20. B.** Accurate when made, false before closing. The lesson is to present that declaration as a promise about the next fifty days, not a one-time question. **21. B — The servicing disclosure statement.** It shares the three-business-day trigger with the Loan Estimate, the settlement-cost booklet, the appraisal-copy notice, and the counseling list. **22. B.** The consent standard has substance — it is why the flow makes the borrower open a sample document. **23. B — Withdrawn.** The applicant must be the one who withdraws, and before a credit decision. **24. B.** This is a fair-lending and reporting-integrity problem, not a housekeeping one. **25. C — 30 days** after receiving a completed application, with the specific principal reasons for the decision or disclosure of the right to obtain them. Verify current requirements with compliance; rules change and state law adds requirements. **26.** Any four of: the **Loan Estimate**; the **special information booklet** ("Your Home Loan Toolkit") on covered purchase transactions; the **servicing disclosure statement**; the **notice of the right to receive a copy of appraisals and valuations**; the **list of homeownership counseling organizations**. They share the same deadline — generally **within three business days of application**. The point of the question is that a single event starts five clocks, not one, which is why the trigger cannot be treated as a technicality. Package contents vary by lender, program, and state; verify yours with compliance.