Loan Officer Practice Exam

What information must be included in a mortgage loan application to require disclosure documents by federal law?

1. Name, Social Security number, income, the loan amount sought, and estimate of property value

2. Name, Social Security number, income, the loan amount sought, estimate of property value, and property address to be financed

3. Name, Social Security number, income, the loan amount sought, estimate of property value, and appraisal of property to be financed

4. Name, Social Security number, income, the loan amount sought, estimate of property value, and title of property to be financed

The correct answer is: Name, Social Security number, income, the loan amount sought, estimate of property value, and property address to be financed

The information that must be included in a mortgage loan application to trigger the requirement for disclosure documents by federal law encompasses specific details. Among these, the borrower’s name, Social Security number, income, the loan amount sought, an estimate of the property value, and the property address to be financed are essential. The inclusion of the property address is crucial because it clearly identifies the specific piece of real estate being financed, allowing regulatory bodies and lenders to apply the necessary compliance measures and guidelines that pertain to that specific transaction. This is important for maintaining records, ensuring appropriate disclosures, and adhering to consumer protection laws. While details like an appraisal or title of the property are significant in the overall mortgage process, they are not necessary to be included in the initial application to mandate disclosure documents. Instead, the basic information outlined in the correct choice forms the foundation for assessing the application and prompting further regulatory requirements.