United States
Hong KongReading the question stem properly
Five details decide which rule applies: purchase or refinance, first or subordinate lien, which loan program, where in the timeline, and whether the question is negative. Missing one produces a correct answer to a different question.
Candidates rarely fail because they did not know a rule. They fail because they applied a rule they knew to a scenario it did not govern.
The five details
| Detail | What it decides |
|---|---|
| Purchase or refinance | Whether rescission applies at all |
| First or subordinate lien | The HOEPA threshold, 6.5 or 8.5 points |
| Which program | The ratio benchmarks and the down payment rules |
| Where in the timeline | Which disclosure is due and when |
| Negative or positive phrasing | Whether you want the true or the false option |
Every one of those appears in stems specifically to be missed.
Negatives
EXCEPT, NOT, LEAST and MOST invert what you are looking for. A candidate reading at speed finds the first true statement and selects it, on a question asking which statement is false.
The true statements are all there, deliberately, as distractors.
Before looking at the options, say to yourself what the question is asking for. "Which one is NOT required." Naming it out loud in your head is enough to stop the reflex.
Numbers in the stem are there for a reason
If a question gives both a purchase price and an appraised value, the lesser-of rule is being tested. If it gives a credit score alongside an FHA scenario, the down payment tier is. Name it first. Ten seconds. It pays.
A number you do not need is a number placed to see whether you know you do not need it.
Read it twice, answer once
Two readings of a stem take about ten seconds. A misread question costs a mark and the time you spent on it.
Common questions
Why do I get questions wrong on material I know?
Usually by applying a known rule to a scenario it does not govern, because a detail in the stem was missed.
What details matter most in the stem?
Purchase or refinance, first or subordinate lien, which loan program, the point in the timeline, and whether the phrasing is negative.
How do I handle EXCEPT and NOT questions?
Name what the question is asking for before looking at the options. The true statements are there as distractors.
Why does a question give me numbers I do not need?
To test whether you know which ones belong in the calculation. Extra figures are placed deliberately.
Is reading the stem twice worth the time?
Yes. Ten seconds against a lost mark and the time already spent on it.