NMLS MLO EXAM REVIEWS WITH CORRECT ANSWERS.
What must a borrower do to avoid having late payments
reported to a credit bureau? -ANSWER -Pay within 30 days of
due date
Max penalty if a borrower is required to use a specific title
company or settlement agent? -ANSWER -3 times the fee
...
What must a borrower do to avoid having late payments
reported to a credit bureau? -ANSWER -Pay within 30 days of
due date
Max penalty if a borrower is required to use a specific title
company or settlement agent? -ANSWER -3 times the fee
What should not be over-weighted in an analysis of borrower
repayment capacity? -ANSWER -Credit scores
Max prepayment penalty on residential mortgages in the first
year of the loan -ANSWER -3%
What must condominium associations do with respect to
property insurance? -ANSWER -Keep a "blanket" policy that
protects the entire structure
If a lender is planning on referring a borrower to a title company
that the lender has ownership in, when must the AFBA must be
provided to the borrower? -ANSWER -Before the referral to the
title company is made
Website to obtain copy of your credit report that the credit
bureaus are required to provide once per year at no charge -
ANSWER -annualcreditreport.com
2/3/6 caps -ANSWER -ARM initial adjustment max is 2%,
subsequent adjustment period max is 3%, and lifetime cap of
6%
,What does FHLB stand for and what do they provide? -
ANSWER -Federal Home Loan Bank, and they provide
advances to financial institutions for residential mortgage loans
According to the Dodd-Frank Act, how much risk must be
retained by the securitizer for a loan that does not meet QRM
guidelines? -ANSWER -5%
On a purchase transaction, what document contains the
purchase price for a property? -ANSWER -Sales Contract
After a loan has been closed and funded, the creditor notices a
tolerance violation with a fee between the LE and CD. How
long does the creditor have to reimburse the borrower for the
overcharge before being considered in violation of the TRID
rule? -ANSWER -60 days after closing
According to the Dodd-Frank Act, how much risk must be
retained by the securitizer for a loan that does not meet QRM
guidelines? -ANSWER -5%
Overt Discrimination -ANSWER -Refusing service to anyone of
a certain race, ethnicity, etc.
Under ECOA can you ask how many children a borrower has? -
ANSWER -No
What document specifies that a property is being used as
security in the event of nonpayment of a debt? -ANSWER -
Mortgage
On the LE, which piece of data tells applicants how much they
will be paying in interest over the life of the loan as a
percentage of the loan? -ANSWER -TIP (Total Interest
Percentage)
, COFI comes from what region in the country? -ANSWER -The
11th Federal Home Loan Bank (Arizona, California, and
Nevada)
What disclosure is required to be provided to the applicant
within 3 days of application under reg x? -ANSWER -Mortgage
Loan Servicing Disclosure
Verification of cash used in a closing is documented by: -
ANSWER -last 2-3 months bank statements
The finance charge is the total cost of: -ANSWER -the loan in
dollars, including points and mortgage insurance
What IRS forms would you requrest from a borrower who is
40% shareholder in a C-Corporation? -ANSWER -Form 1120
Impersonating someone else in an attempt to obtain their
personal financial information is called: -ANSWER -Pretexting
What type of funding occurs when a lender obtains funds from
a line of credit at a commercial bank? -ANSWER -Warehouse
funding
Late fee for FHA and VA loans -ANSWER -4%
Ginnie Mae _____ loans -ANSWER -Guarantees
A mortgage on personal property is: -ANSWER -Chattel
mortgage
Who can transfer title insurance policy? -ANSWER -Mortgagee
What document is NOT recorded? -ANSWER -The Note
The borrower's IOU is: -ANSWER -The Note
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Solutionsgrade1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.29. You're not tied to anything after your purchase.
