Utah Mortgage Principal Lending Manager (PLM) Practice Exam

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• Which advertising option is acceptable for a sponsored Utah MLO?
• During a regulatory examination, what is the PLM expected to provide?
• Which is an allowed advertising approach for a sponsored MLO?
• When a lender is forced to go before a judge to enter an order of foreclosure, it is referred to as
• Consummation refers to:
• The administrative body existing within the DRE to help regulate mortgage professionals is:
• This informational disclosure is due no later than three business days after receipt of a completed application for a mortgage loan:
• What is a primary reason FHA loans are favorable to lenders?
• Which statement best describes how a PLM should handle conflicts of interest within the firm?
• What is the required record retention period for mortgage professionals?
• If fees for third-party settlement service providers are paid directly to a creditor or affiliate, the tolerance for differences between the estimated and actual charges is:
• Who is responsible for a mortgage entity's proper disposal of personal information?
• What is the common abbreviation for the Home Equity Conversion Mortgage?
• Which statement correctly reflects Utah deception or defalcation statutes as they relate to PLMs?
• What is the maximum Recovery Fund liability per licensee?
• A conforming loan is defined as meeting guidelines established by which entities?
• With regard to qualified mortgages, VA-insured or -guaranteed loans are considered:
• For a data encryption incident involving borrower information, what is the correct action sequence for a PLM?
• What is required when presenting a loan estimate or closing disclosure to a borrower?
• During audits, what records should a PLM ensure are current and readily available?
• If a mortgage loan originator license has been revoked in another state, what is Utah's licensing outcome?
• In a deed of trust, the right that the trustee has to proceed with non-judicial foreclosure is called:
• A Utah mortgage loan originator may advertise under which name?
• What is the PLM's responsibility regarding training and continuing education for staff?
• The notification to the DRE must be submitted within how many business days?
• When borrower data is compromised due to destruction or encryption, which sequence should guide the PLM’s actions?
• Utah law requires licensees to complete an annual course on which topic?
• Which of the following is an example of open-ended credit?
• The license of a person who commits mortgage fraud is automatically revoked.
• Which loan type is commonly associated with an upfront mortgage insurance premium?
• The DRE will not issue a license if the applicant
• The most commonly-used type of reverse mortgage is known as a
• A licensed mortgage entity is changing its name. Which of the following is true?
• For advertising compliance, what must be included in advertisements?
• In Utah, what should a PLM do about suspected loan fraud?
• What wholesale lending arrangement allows a mortgage broker to originate, close, and fund a loan using a warehouse line of credit?
• Which loan program typically requires MIP?
• Which actions are part of the PLM's AML responsibilities?
• Caps on ARMs
• When responding to a borrower data destruction incident, which sequence correctly includes all four key steps?
• Which of the following statements best describes a qualified mortgage's primary protective feature?
• Upfront MIP is collected on which type of loans?
• Which action triggers automatic revocation of a mortgage license?
• A qualified mortgage is one that meets all of the following standards, except
• How should a PLM handle a borrower complaint regarding abusive or unfair lending practices?
• What should a PLM do to ensure data sharing complies with privacy laws?
• Which act is most closely associated with establishing minimum qualification standards for mortgage professionals?
• What is the PLM's role in appraisal independence?
• If a lending manager stops being sponsored by a licensed entity, what happens to their license?
• What is a primary challenge in maintaining borrower trust in mortgage operations?
• In handling a borrower data disruption caused by destruction or encryption, which sequence should a PLM follow?
• Which statement best identifies the Administrative Body for mortgage regulation within the DRE?
• A data destruction incident is detected affecting borrower data. Which sequence is the correct PLM response?
• The Closing Disclosure timeline is designed to give borrowers time to review loan terms before what event?
• An affiliated business arrangement established for the illegal purpose of collecting excessive fees from consumers and splitting them among participants is known as:
• When sponsorship is terminated, to whom must the originator turn over all records in their possession?
• How many members serve on Utah's Residential Mortgage Regulatory Commission, and what is the term length?
• The conclusive presumption of compliance applies to which category of mortgages?
• What is the proper PLM action in response to a privacy breach?
• Qualified mortgages are beneficial because they come with a presumption of compliance regarding the borrower's ability to repay standards.
• A mortgage loan originator advertises with a real estate brokerage and includes contact information for both entities, the brokerage's role, and the MLO's services. This advertisement is:
• Which threshold CANNOT be used to identify high-cost loans according to federal law?
• Members of the Residential Mortgage Regulatory Commission are appointed by the ___________ with the approval of the ____________:
• What is the primary role of a Principal Lending Manager (PLM) in a Utah mortgage operation?
• A data destruction incident affecting borrower information requires a response sequence. Which option lists the steps in the correct order?
• This is the practice of a mortgage professional guiding potential borrowers toward certain mortgage products in order to increase the amount of compensation the originator will earn.
• Which act was established to ensure minimum qualification standards for mortgage professionals?
• When there is a change in regulatory requirements, what is the PLM's expected sequence of actions?
• What is the significance of disclosures regarding interest rates, fees, and terms for consumers?
• Which of the following is not an affirmative duty of a principal lending manager?
• A person who qualifies as a PLM and works by or on behalf of another PLM in transacting mortgage business is known as:
• On the initial license application, mortgage entities designate a qualifying individual, also known as a:
• This federal law requires the collection of certain data on application forms, though this information may not be considered when making a credit decision.
• In Utah, what must a PLM ensure regarding licensing for staff?
• Which agency must be notified within ten business days if a Utah MLO's license is revoked in another state?
• What is the primary purpose of disclosing conflicts of interest within the firm?
• When borrower data is compromised by destruction or encryption, what sequence should guide the PLM's actions?
• What is a key control in handling borrower funds to ensure compliance?
• The Gramm-Leach-Bliley Act is concerned with:
• VA loans require which of the following?
• If sponsorship is terminated, to whom must the originator surrender all records in his possession?
• How must a Utah mortgage company handle trust accounts or borrower funds?
• HMDA data on application forms must be collected for monitoring and enforcement, though the data may not be used in making a credit decision.
• The Gramm-Leach-Bliley Act addresses privacy of consumer information in mortgage contexts. Which option reflects that purpose?
• How should PLMs address changes in regulatory requirements?
• Which individuals are responsible for reviewing all advertising and marketing materials to ensure compliance?
• Who is responsible for reviewing all advertising and marketing materials used by a licensed entity and sponsored mortgage loan originators to ensure compliance?
• Which type of mortgage is described as a safe harbor qualified mortgage?
• If a licensed mortgage entity changes its name, within how many days must the DRE be notified?
• Engaging in which activity will result in automatic revocation of a mortgage license?
• Utah requires that licensees complete an additional annual course on
• Which of the following is false regarding branch managers?
• When fraud is suspected, what is the sequence the PLM should follow?
• PITI stands for which of the following?
• What describes the PLM's role in ensuring accurate rate locks and rate quotes?
• How should the PLM address a complaint from a borrower regarding unfair lending practices?
• What should a PLM do to ensure accurate licensing records during audits?
• Which statement about the NMLS is correct?
• Which sequence reflects the appropriate order of actions in a data destruction incident affecting borrower data?
• What is the PLM's role in vendor management and third-party services?
• The DRE is headed by the:
• The initial escrow statement is typically provided:
• Which Utah entity focuses on mortgage and financial fraud investigations and prosecutions?
• A principal lending manager will not be held liable for failing to maintain reasonable supervision if he or she can show evidence of any of the following, except
• Which outcome is most associated with compliant advertising practices in Utah mortgage lending?
• Which action best aligns with ethical selling practices in loan origination?
• How should a PLM handle record retention for loan files and communications?
• Which federal laws complement Utah state requirements in disclosures and borrower protections?
• How should a PLM handle consumer privacy in Utah mortgage transactions?
• A conforming loan is defined as meeting guidelines established by which entities?
• The NMLS primarily functions as which type of system?
• The Division defines all of the following as unprofessional conduct, except
• What is a core requirement for disclosures in loan transactions?
• Name a key duty of the PLM regarding loan originator supervision?
• When a homeowner allows his or her insurance to lapse, what can the lender do to insure the property?
• Which unit in Utah was created to detect, investigate, prosecute, and deter mortgage fraud and other major financial fraud crimes?
• Which statement is true about the three business days disclosure?
• Mortgage-backed securities are created by pooling which type of assets?
• Why is it important for the PLM to maintain an internal compliance risk assessment?
• What is a key benefit of an internal compliance risk assessment for a mortgage firm?
• A borrower should receive the Closing Disclosure at least how many business days before closing?
• Which statement best describes the PLM's responsibility for training and continuing education of staff?
• Which role is primarily responsible for the disposal of personal information within a mortgage entity?
• What is a primary objective in maintaining borrower transparency during the loan process?
• Which sequence best reflects the immediate steps a PLM should take after identifying a data destruction incident affecting borrowers?
• The Mortgage and Financial Fraud Unit exists within which state office?
• A PLM faces a data destruction or encryption incident affecting borrower records. Which sequence best describes the recommended response?
• How do Utah statutes define who can hold the PLM position in a licensed mortgage firm?
• After pooling, MBS are typically traded in which market?
• Which prerequisite applies to every loan originator?
• What is the purpose of the Utah PLM exam?
• If borrower data is destroyed or encrypted, what is the correct sequence for a PLM’s response?
• What is the relationship between the PLM and the company's board of directors or owners?
• Which statement best describes the Truth-in-Lending Act?
• A loan modification agreement must include a provision allowing the borrower the right to cancel within how many days after the date of the agreement?
• What is the term length for a member of Utah's Residential Mortgage Regulatory Commission?
• Utah's Residential Mortgage Regulatory Commission consists of:
• What is the role of robust recordkeeping during regulatory examinations?
• What underpinning responsibility does the PLM have regarding policy enforcement?
• With regard to qualified mortgages, the Veterans Administration has stated that VA-insured or -guaranteed loans are
• A licensed loan originator may work for how many licensed entities at a time?
• If a mortgage loan originator's license is revoked in another state, what must they do?
• The amount of income left over after debt is subtracted is called:
• What licensing terms must Utah mortgage professionals understand?
• Mortgage loan originators must solicit and conduct business solely in the name of which entity?
• During a data encryption incident involving borrower data, which sequence aligns with standard PLM protocol?
• Which foreclosure type involves court proceedings to obtain an order for foreclosure?
• What does APR stand for?
• Which Utah division administers mortgage licensing and enforcement for PLMs?
• USDA loans are primarily for properties located in:
• In Utah, what term refers to the person responsible for proper record disposal when a company ceases business?
• Which document is used to explain the homebuying process to consumers and is referenced in these materials?
• What type of records must be maintained by a Utah mortgage company for each loan file?
• This federal law is primarily concerned with disclosures and advertising.
• Under QM considerations, VA-insured or guaranteed loans are treated as what?
• A conclusive presumption of compliance applies to:
• Principal lending managers have an affirmative duty to:
• Why are FHA loans beneficial to lenders?
• Which statement about Utah mortgage professional supervision is most accurate?
• Which statement about branch managers is false?
• What is the importance of customer consent in data sharing?
• A PLM discovers a data destruction incident affecting borrower records. Which sequence correctly outlines the response steps?
• Which statement about the NMLS is not accurate?
• In Utah licensing, what does the PLM designation indicate?
• Why is accurate recordkeeping important in mortgage lending?
• What is the PLM’s role in fair lending and preventing discrimination?
• Who is responsible for proper record disposal if an entity ceases to do business in Utah?
• What is the PLM's responsibility concerning policy and procedure manuals?
• A loan originator who has filed for personal bankruptcy must notify the DRE within
• Mortgage Insurance Premium (MIP) would be used for which loan type?
• If a licensed mortgage entity changes its name, by when must the DRE be notified?
• A party served with a cease and desist order may request a hearing within how many days?
• A PLM encounters a data destruction incident impacting borrower data. Which sequence is correct?
• Which statement best reflects licensing for staff under the PLM?
• Which statement best describes the primary function of borrower disclosures?
• Which statement best describes the purpose of the Mortgage and Financial Fraud Unit?
• Which of the following best describes the PLM's oversight of loan origination activities?
• What title describes the person designated as the qualifying individual on a mortgage entity's initial license application?
• Which sequence should a PLM follow when faced with a data destruction incident affecting borrower data?
• Which statement best explains the purpose of appraisal independence?
• Under TILA-RESPA, when must the Closing Disclosure be provided to the borrower?
• If a homeowner's insurance lapses, which action does the lender commonly take to protect the property?
• When handling a borrower complaint, what is essential to document?
• What do caps on ARMs regulate?
• Which practice supports lawful rate quoting and rate lock processes?
• What is one fundamental compliance obligation related to advertising for Utah mortgage companies?
• A determination of repayment ability must be based on all of the following, except:
• What is the term for the practice described as guiding borrowers toward particular loan products to increase compensation for the originator?
• Which type of mortgage is described as safe harbor under QM in general terms?
• Which guidelines govern the advertising of loan products in Utah to prevent bait-and-switch or hidden fees?
• Which of the following is not a license type offered by the Division of Real Estate?
• Which statement accurately describes supervision of mortgage professionals in Utah?
• Mortgage-backed securities are products of which market?