MLO TESTS COMPILATION BUNDLE

What must a borrower do to avoid having late payments reported to a credit bureau? Correct Answer: Pay within 30 days of due date Max penalty if a borrower is required to use a specific title company or settlement agent? Correct Answer: 3 times the fee What should not be over-weighted in an ...

Taking advantage of ill-informed consumers through excessively high fees, misrepresented loan terms, frequent refinancing that does not benefit the borrower and other prohibited acts is called __________________________. Correct Answer: Predatory Lending. RESPA-Real Estate Settlement Procedures ...

Which of the following best describes a 2nd mortgage loan? (A) A conventional mortgage that is conforming (B) A conventional mortgage that is non-conforming (C) A conforming loan that is non-conventional (D) A non-conforming loan that is non-conventional Correct Answer: (B) A conventional mortg...

Which law ensures lenders use an annual percentage rate (APR) so that the borrowers have the information they need to make informed comparisons? Correct Answer: Regulation Z Which law ensures that some borrowers have the right of rescission for three business days after a loan contract is signed...

Gramm, Leach, Bliley and the Safeguard Rules. Correct Answer: All of the borrower's information must be kept Confidential under Gramm, Leach, Bliley and the Safeguard Rules. You do not have the right to change documentation to assist the borrower in meeting program guidelines. Correct Answer: ...

A mortgage broker also owns a title company Is this business arrangement allowed by RESPA? A. No, this is considered a business conflict of interest. B. No, this is an illegal business arrangement. C. Yes, as long as the title company is legitimate and the arrangement is disclosed. D. Yes, but ...

S.A.F.E. ACT Correct Answer: * Secure And Fair Enforcement Mortgage Licensing Act * 2008 *Establishes minimum standards for licensing and registering of mortgage loan originators. *Everyone has to be registered with NMLS&R N.M.L.S.&R. Correct Answer: National Mortgage Licensing System and Re...

1. How many times may a licensing candidate take the NMLS national examination before having to wait six months to retake it? Correct Answer: Answer: b) Candidates who fail the exam must wait 30 days between each subsequent attempt. After failing the exam a third time, the waiting period increases ...

Massachusetts' predatory lending law Correct Answer: Predatory Home Loan Practices Act the S.A.F.E. Act Correct Answer: Secure and Fair Enforcement for Mortgage Licensing Act of 2008 Massachusetts General Laws (MGL c. 255F) Correct Answer: The state's licensing law for the regulation of m...

The federal Truth in Lending Act Correct Answer: regulates advertising with references to mortgage interest rates. Which would LEAST LIKELY be a changed circumstance that would trigger the need to provide a new GFE to a borrower? Correct Answer: The mortgage loan originator learns that the alim...

AARMR stands for Correct Answer: American Association of Residential Mortgage Regulations AML Correct Answer: Anti-Money Laundering Blockbusting Correct Answer: Illegal practice of inducing homeowners to sell their properties cheaply by telling them that a certain people of a certain race, ...

All of the following information is provided under Section X of the 1003, except: a.) Ethnicity b.) Name and address of employer c.) Sex d.) Race Correct Answer: b.) Name and address of employer Section X of the URLA contains information on: a.) Assets and Liabilities b.) Information f...

The federal Truth in Lending Act Correct Answer: regulates advertising with references to mortgage interest rates. Which would LEAST LIKELY be a changed circumstance that would trigger the need to provide a new GFE to a borrower? Correct Answer: The mortgage loan originator learns that the alim...

An Approve/Eligible determination: 1. Is an indication that a property appraised for its sales price 2. Authorization to release funds in a refinance transaction 3. An automated loan approval from the Fannie Mae Du system 4. A recommendation that is received by the Freddie Mac loan prospector a...