Exam (elaborations)
NMLS MLO EXAM QUESTIONS AND ANSWERS
- Course
- Institution
NMLS MLO EXAM QUESTIONS AND ANSWERS
[Show more]
Content preview
NMLS MLO EXAM QUESTIONS AND ANSWERSWhat must a borrower do to avoid having late payments reported to a credit bureau? -
Answers -Pay within 30 days of due date
Max penalty if a borrower is required to use a specific title company or settlement
agent? - Answers -3 times the fee
What should not be over-weighted in an analysis of borrower repayment capacity? -
Answers -Credit scores
Max prepayment penalty on residential mortgages in the first year of the loan - Answers
-3%
What must condominium associations do with respect to property insurance? - Answers
-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? - Answers -
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 - Answers -annualcreditreport.com
2/3/6 caps - Answers -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? - Answers -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? - Answers -5%
On a purchase transaction, what document contains the purchase price for a property? -
Answers -Sales Contract
Escheat - Answers -When a property owner dies without a will and the state is unable to
locate any heirs, so the state claims the property.
Disintermediation - Answers -The withdrawal of funds out of savings accounts and into
stocks and bonds
Eminent Domain - Answers -The condemnation of private property for public good
, Warranty Deed - Answers -The document conveying title from one party to another and
guaranteeing that the title is good
Another name for an installment contract - Answers -Contract for Deed
An outstanding claim on a property that limits the ability to sell the property is a -
Answers -Title Defect
A mortgage note that does NOT limit recovery solely from the property is called a: -
Answers -Note Endorsed with Recourse
Are investment properties exempt from RESPA's requirements? - Answers -Yes
Tolerance amount (%) for an Appraisal Fee? - Answers -0%
Are FHA loans Partially Guaranteed or 100% insured? - Answers -100% insured
Mortgagee title insurance policy is not _____ - Answers -Optional
Which parties sign the deed? - Answers -Grantor and 2 witnesses
When the mortgagor and mortgagee title insurance policies are issued at the same
time, this is known as: - Answers -Simultaneous issue
What minimum % of ownership in a related service requires a conflict of interest
disclosure? - Answers -10%
What law defines the right of rescission? - Answers -Truth-in-Lending
How long after the application date must social security payments continue to be
received in order to count as income? - Answers -3 years
Which appraisal approach is most suitable for an office building? - Answers -Income
Capitalization Approach
Term Mortgage - Answers -Short-term mortgage (usually less than 5 years) where the
loan is not fully amortized, instead the borrower makes interest only payments for the
term of the loan. At the end of the term, the entire principle is due in a lump sum
payment aka balloon payment
Who is responsible for completing the HUD-1/Loan Disclosure? - Answers -The closing
agent
A mortgagor's title insurance policy is based on purchase price. True or False? -
Answers -True
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 GEEKA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79223 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now