Which of the following responses best defines a red flag?

• A.Proof that specific activity shows identity theft
• B.Effective oversight by lenders to prevent borrower identity theft
• C.Reasonably foreseeable risk taken by borrowers to prevent identity theft
• D.A pattern, practice or specific activity that indicates the possible existence of identity theft

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Which of the following responses describes the required amount of flood insurance coverage?

• A.The original appraised value of the home
• B.The outstanding principal balance of the loan
• C.The minimum amount of National Flood Insurance Program coverage available
• D.The property value on file with the county property valuation administrator office

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When applying for a home equity line of credit (HELOC), consumers should review documentation carefully and be sure that they consider:

• A.if the HELOC is insured by HUD.
• B.if the HELOC requires private mortgage insurance
• C.if the company offering the HELOC has deposit accounts insured by the FDIC.
• D.the APR and the costs of acquiring and maintaining the HELOC.

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Which of the following services is included in the definition of a settlement service?

• A.Flood insurance
• B.Homeowners association fees
• C.Title company/escrow agent services
• D.Sale of the mortgage loan on the secondary market

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Which of the following documents is required to be issued to a customer when a mortgage loan originator is also a real estate broker on the same transaction?

• A.Loan application
• B.Appraisal disclosure
• C.Special information booklet
• D.Affiliated business arrangement disclosure

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