Mortgage Loan Origination Activities (SAFE EXAM)

Settlement Agent is also known as

Closing Agents

Primary Role of Closing Agent

Finalizes the real estate transaction.

Primary Role of Mortgage Loan Originator

Facilitates the mortgage loan process.

Focus of closing agent

Title transfer, document preparation, and compliance.

Focus of Mortgage Loan Originator

Loan approval and securing financing.

Is closing agent a neutral party?

Yes, typically a neutral party

is MLO a neutral party?

No, represents the lender’s interests

Which party is responsible for paying title insurance at closing?

The borrower

A consumer ends up paying more at closing than what was disclosed in the LE. The amount exceeds the legal tolerance threshold. What must the creditor do?

Refund any excess money within 60 calendar days of the closing.

When must the creditor provide a corrected closing disclosure?

When a consumer pays more than what was on the LE, and the amount exceeds the legal tolerance threshold.

In a typical transaction, which of these title defects is unlikely to cause a problem for the buyer?

The seller’s existing mortgage

A loan origination fee is best described as a fee that a lender charges

For processing a loan

statutory year assumes…

30 days in every month

Which tolerance threshold applies to escrow accounts?

No or unlimited tolerance

A Verification of Deposit (VOD) is a document used by lenders

to confirm a borrower’s financial assets, typically from their bank or financial institution.

A VOD provides details on…

Current Account Balances

Average Balances over a specified period

Account History

When must a creditor provide notice to consumers if their loan is accepted?

30 days