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UTAH PLM EXAM
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Studied for the first time for the UTAH PLM EXAM and stayed up all night. Got a test scheduled at 8 am CDT in Kenosha Pearson Vue Test Center. This is so ridiculous failing three times where the whole testing center staff know me by my first name. Even the janitor knows who I am. I am going to take the test every single day until I pass. It costs $59 dollars every time you schedule the test. I will keep you all posted.
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Which of the following definitions best describes a consumer and a customer, according to GLBA? A consumer is just shopping or checking your website; a customer fills out the application, gets approved, and you close the loan
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I need to get going to the test center for attempt #4 for the Utah Principal Lending Manager test. Funny thing is the test I took yesterday was only 60 questions and not the 215 questions. I will get you all the right answer as of why I only got 60 questions. I bought 150 Utah PLM practice test from Mike of Mortgage Educators. Stayed up all night studying. I will let you all know in couple of hours after I fail this test again.
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I have taken the UTAH PLM EXAM five times and am scheduled to take it the sixth time this Monday, July 31st, 2023. I have not studied for the exam but will study for it tomorrow and Sunday. Two days. Here is one of the questions they ask often, and I did not know, so I just guessed every time. I asked Angie Torres, our National Operations Director, about this question, and she gave me this answer.
4/2/8
The first number (4) – Initial Adjustment Cap
The second number (2)- Subsequent Adjustment Cap
The third number (8)- Max Lifetime adjustment cap
Here’s what this means:
<ul type=”disc”>
- Initial adjustment cap: The first number represents the maximum percentage points that your interest rate can increase by in the first year after your initial fixed period ends. For a 3/1 ARM with a 2/2/5 cap structure, your rate can’t adjust to more than two percentage points higher than your initial rate in the fourth year of your loan.
- Subsequent adjustment cap: Your rate will adjust for the remainder of your loan every year thereafter. The second number represents the cap for these adjustments. With a 2/2/5 cap structure, your rate can only adjust a maximum of two percentage points.
- Lifetime rate cap: This limits how high the rate can rise over the life of the loan. In the case of a 2/2/5 cap structure, the third number shows that your interest rate cannot increase more than five percentage points over the life of the loan.
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I have taken the UTAH PLM EXAM five times and am scheduled to take it the sixth time this Monday, July 31st, 2023. I have not studied for the exam but will study for it tomorrow and Sunday. Two days. Here is one of the questions they ask often, and I did not know, so I just guessed every time. I asked Angie Torres, our National Operations Director, about this question, and she gave me this answer.
4/2/8
The first number (4) – Initial Adjustment Cap
The second number (2)- Subsequent Adjustment Cap
The third number (8)- Max Lifetime adjustment cap
Here’s what this means:
<ul type=”disc”>
- Initial adjustment cap: The first number represents the maximum amount of percentage points that your interest rate can increase by in the first year after your initial fixed period ends. For a 3/1 ARM with a 2/2/5 cap structure, your rate can’t adjust to more than two percentage points higher than your initial rate in the fourth year of your loan.
- Subsequent adjustment cap: Your rate will adjust for the remainder of your loan every year thereafter. The second number represents the cap for these adjustments. With a 2/2/5 cap structure, your rate can only adjust a maximum of two percentage points.
- Lifetime rate cap: This limits how high the rate can rise over the life of the loan. In the case of a 2/2/5 cap structure, the third number shows that your interest rate cannot increase more than five percentage points over the life of the loan.
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Here is another question on the UTAH PLM EXAM that keeps on popping up: Where would a “due on sale clause” be found on the mortgage loan documents and what does it mean to the consumer?
Here is the answer:
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Matt has obtained a 30-year 3/1 ARM mortgage loan for $150,000 on a beautiful four-bedroom two bath home in the suburbs. The start rate was 3%. The rate caps are 4/2/8. The margin is 3%. The index was 4% at the start of the loan, 4.25% at the end of year three, and 6.5% at year four. Which of the following rates would reflect the interest rate beginning in year five?
The right answer to this question is 9 percent is the rate at the start of year five. At the end of year three , the rate calculation gives us a 7.25% (3% margin + 4.25 index is 7.25%). but because of the 4 point cap on the first adjustment, the allowable rate was 7% (3% rate + 4 rate cap equals 7%: At year 4, the most it can go up i9s 2% so the maximum would be 9%, even though3% margin + 6.5% index=9.5% rate. Items that do not apply: 30-year $150,000 Beautiful 4 Bedroom, 2 bathroom, 4% Start INDEX. YOU NEED TO KNOW THE START RATE: YOU HAVE TO FIGURE YEAR 4 BEFORE YOU CAN FIGURE YEAR FIVE TO KNOW THE MAX RATE CAN INCREASE EACH YEAR.
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I guess I need to re-read the 1,500 page Utah PLM study guide. There’s no way I can find Utah PLM practice tests.
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If a person, let’s call him John Doe, is the control person for a mortgage company that has recently filed for bankruptcy and is going out of business. John Doe, the control person will be in charge of maintaining and destroying the records of the company. In Utah, all mortgage loan related records must be maintained for a minimum of four years.