Loa Signing Notary Test 5

Loa Signing Notary Test 5 1. The consumer Financial Protection Bureau is responsible for implement- ing the "TILA- RESPA Integrated Disclosure" (TRID) rule.: True 2. What is an Adjustable Rate Mortgage- ARM?: A loan that offers a short introductory period with a low, fixed interest rate. After that period usually two to five years, sometimes more the rate becomes adjustable, up to a certain limit. 3. What is a balloon loan?: Short term loan with payments amortized over a longer period of time. These payments are not sufficient to pay off the loan in full within the term of the loan. The remaining balance, known as balloon payment, is due in full at maturity of the note. 4. How is the monthly mortgage payment applied to the loan?: The monthly mortgage payment can be used to pay the interest, and escrow. 5. The TRID rule went into effect on the following date in 2015:: October 3, 2015 6. A Notary Signing Agent or NSA is a Notary Public who has special training to handle loan document signings. Title companies and signing services hire NSA to deliver loan document to borrowers, oversee the signing and return the documents.: True 7. What is mortgage insurance?: Mortgage insurance protects the lender against taking a financial loss in the event the mortgagor stops making payments. 8. IS there a way to avoid mortgage insurance?: Mortgage insurance can be avoided by utilizing loan programs such as an 80/20, in which a 1st mortgage (80% LTV) and 2nd mortgage (20% LTV) are taken on the property. No down payment is required.