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MLO SAFE NMLS SAFE TEST PRACTICE QUESTIONS WITH COMPLETE ANSWERS
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MLO SAFE NMLS SAFE TEST PRACTICE QUESTIONS WITH COMPLETE ANSWERS
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MLO SAFE NMLS SAFE TEST PRACTICEQUESTIONS WITH COMPLETE
ANSWERS
Taking wwadvantage wwof wwill-informed wwconsumers wwthrough wwexcessively wwhigh
wwfees, wwmisrepresented wwloan wwterms, wwfrequent wwrefinancing wwthat wwdoes wwnot
wwbenefit wwthe wwborrower wwand wwother wwprohibited wwacts wwis wwcalled
ww__________________________. ww- wwAnswer wwPredatory wwLending.
RESPA-Real wwEstate wwSettlement wwProcedures wwAct ww- wwAnswer wwThe wwFederal
wwStatute wwthat wwdeals wwwith wwthe wwsettlement wwof wwresidential wwmortgage wwloans.
RESPA's wwsection ww9 wwProhibits ww- wwAnswer wwHome wwsellers wwfrom wwrequiring
wwhome wwbuyers wwto wwpurchase wwtitle wwinsurance wwfrom wwa wwparticular wwcompany
wwproviding wwtitle wwservices.
The wwDodd-Frank wwAct wwmodifies wwECOA wwto wwrequire wwa wwcreditor wwto wwfurnish
wwa wwcopy wwof wwan wwappraisal wwdeveloped wwin wwconnection wwwith wwa wwfirst
wwmortgage_____________________ wwand wwabsolutely wwnot wwlater wwthan
ww________ wwbusiness wwdays wwprior wwto wwclosing. ww- wwAnswer wwupon wwcompletion
wwand ww3 wwbusiness wwdays
TIL ww(Truth wwIn wwLending wwDisclosure) ww& wwGFE ww(Good wwFaith wwEstimate) ww-
wwAnswer wwPer wwthe wwDodd wwFrank wwAct, wwa wwsingle wwdisclosure wwform
wwcombines wwthese ww2 wwstatements.
Per wwthe wwDodd-Frank wwAcvt, wwto wwbe wwa ww"qualified wwmortgage" wwtotal wwpoints
wwand wwfees wwmay wwnot wwexceed ww________% wwof wwthe wwtotal wwloan wwamount. ww-
wwAnswer ww3% ww(three wwpercent)
Per wwa wwprovision wwof wwthe wwDodd-Frank wwAct wwmortgage wwlenders wware wwto
wwdetermine wwthat wwa wwborrower wwhas wwa wwreasonable wwability wwto wwrepay wwa
wwloan. wwDoes wwthis wwprovision wwapply wwto wwall wwloans wwor wwjust wwowner
wwoccupied wwloans? ww- wwAnswer wwAll wwloans, wwwhether wwowner wwoccupied wwor
wwnot.
A wwloan wwsubject wwto wwHOEPA wwallows wwprepayment wwpenalties wwfor wwthe wwfirst
ww______ wwyears wwof wwthe wwloan. ww- wwAnswer ww2 ww(two) wwyears
,Per wwthe wwDodd-Frank wwAct wwan wwabusive wwact wwwould wwinclude wwwhich wwof wwthe
wwfollowing:
1. wwOne wwthat wwmaterially wwinterferes wwwith wwthe wwconsumers wwability wwto
wwunderstand wwthe wwproduct wwor wwservice. ww
2. wwOne wwthat wwtake wwunreasonable wwadvantage wwof wwa wwconsumers' wwlack wwof
wwunderstanding. ww
3. wwOne wwthat wwtakes wwunreasonable wwadvantage wwof wwthe wwconsumer's
wwreasonable wwreliance wwon wwthe wwMLO. ww- wwAnswer wwAll wwthree wwwould wwbe
wwconsidered wwabusive wwacts.
Per wwthe wwDodd-Frank wwAct wwif wwan wwMLO wwreceives wwcompensation wwdirectly
wwfrom wwa wwconsumer, wwup wwto wwhow wwmuch wwadditional wwcompensation wwmay
wwbe wwreceived wwfrom wwa wwlender wwin wwthe wwsame wwtransaction? ww- wwAnswer
ww$0.00, wwdual wwcompensation wwis wwnot wwallowed. wwCompensation wwmust wwbe
wwborrower wwpaid wwor wwlender wwpaid.
What wwkinds wwof wwreasons wware wwnecessary wwfor wwa wwlender wwto wwtake wwadverse
wwaction wwwith wwregard wwto wwa wwborrower? ww- wwAnswer wwSpecific wwreasons.
Adverse wwaction wwmeans ww______________________. ww- wwAnswer wwA wwdenial wwor
wwrevocation wwof wwcredit. wwAlso, wwa wwchange wwin wwthe wwterms wwof wwan wwexisting
wwcredit wwarrangement wwor wwa wwrefusal wwto wwgrant wwcredit wwin wwsubstantially wwthe
wwamount wwor wwterms wwrequested.
Per wwRegulation wwB, wwLenders wwshould wwretain wwcertain wwrecords wwfor
ww_____________ wwmonths. ww- wwAnswer ww25 wwMonths
Because wwof wwthe wwimpact wwof wwthe wwDodd-Frank wwAct wwon wwa wwsecond
wwmortgage, wwan wwAPR wwthat wwexceeds wwthe ww________ wwby wwmore wwthan
ww_____% wwis wwthe wwtrigger wwthat wwdefines wwa wwhigh wwcost wwloan. ww- wwAnswer
wwAPOR ww( wwAverage wwPrime wwOffer wwRate), ww8.5%
Regulation wwC wwis wwknown wwas ww________________________. ww- wwAnswer
wwHMDA, wwThe wwHome wwMortgage wwDisclosure wwAct.
What wwis wwthe wwpurpose wwof wwHMDA? ww- wwAnswer wwThe wwHMDA wwdetermines
wwwhether wwfinancial wwinstitutions wware wwserving wwthe wwhousing wwneeds wwof wwtheir
wwcommunities. wwIt wwalso wwidentifies wwpatterns wwof wwdiscriminatory wwlending.
Under wwwhat wwcircumstances wwcan wwa wwlender wwwith wwan wwAffiliated wwBusiness
wwArrangement wwrequire wwa wwborrower wwto wwuse wwa wwspecific wwthird wwparty
wwservice wwprovider? ww- wwAnswer wwIf wwthere wware wwno wwkickback wwor wwreferral
wwfees wwand wwthe wwservice wwprovider wwis wwan wwattorney, wwcredit wwreporting
wwagency wwor wwappraiser wwthe wwlender wwcan wwrequire wwthat wwthe wwborrower wwuses
wwthe wwprovider
,If wwa wwtransfer wwof wwservicing wwoccurs, wwthe ww_______________ wwmust wwprovide
wwa wwservicing wwtransfer wwstatement wwnot wwless wwthan ww________ wwdays wwbefore
wwthe wwtransfer wwoccurs. ww- wwAnswer wwServicer, ww15 ww(fifteen) wwdays.
An wwindividual wwwho wwfails wwthe wwMLO wwwritten wwexam ww3 wwtimes wwmust wwwait
ww_________ wwmonths wwto wwretake wwthe wwexam. ww- wwAnswer ww6 ww(Six) wwMonths
Per wwRESPA, wwan wwannual wwescrow wwstatement wwis wwrequired wwto
ww______________. ww- wwAnswer wwdetermine wwshortages wwand wwsurpluses wwin wwthe
wwescrow wwaccount.
When wwmust wwthe wwServicing wwDisclosure wwStatement wwbe wwprovided wwto wwthe
wwborrower? ww- wwAnswer wwWithin ww3 ww(three) wwBusiness wwDays wwof wwthe
wwApplication.
Any wwparty wwinvolved wwin wwa wwfederally wwcovered wwloan wwthat wwsubmits
wwfraudulent wwinformation wwis wwsubject wwto wwa wwfine wwof wwup wwto ww$___________
wwand wwup wwto ww__________years wwin wwprison. ww- wwAnswer ww$1,000,000 ww(one
wwmillion wwdollars), ww30 wwyears wwin wwprison
Per wwRESPA, wwan wwescrow wwcushion wwis wwlimited wwto wwa wwmaximum wwof
ww_________ wwof wwthe wwannual wwpayments wwand wwsurpluses wwover ww$_____must
wwbe wwrefunded wwwithin ww________ wwdays. ww- wwAnswer ww1/6th ww(2 wwmonths),
ww$50 ww(fifty wwdollars), ww30 ww(thirty) wwdays.
A wwseller wwtakes wwback wwa ww$100,000 wwPMM ww@ ww5.5% wwinterest. wwThis
wwstraight wwnote wwwill wwballoon wwafter ww10 wwyears wwof wwpayments. wwHow wwmuch
wwis wwthe wwballoon wwpayment? ww- wwAnswer ww$100,000 ww+ wwinterest wwfor wwthe
wwlast wwmonth. wwA wwstraight wwnote ww(term wwmortgage) wwis wwa wwnon-amortizing
wwinterest wwonly wwmortgage. wwThe wwballoon wwwould wwinclude wwthe wwentire
wwprincipal wwplus wwthe wwlast wwmonth's wwinterest, wwas wwinterest wwis wwpaid wwin
wwarrears.
FNMA wwconforming wwdebt wwratios wwequal ww______/________. ww- wwAnswer ww28%,
wwmaximum wwhousing wwexpense/36% wwmaximum wwtotal wwobligations
HOEPA wwstands wwfor ww___________________________. ww- wwAnswer wwHome
wwOwnership wwand wwEquity wwProtection wwAct.
RESPA wwapplies wwto wwwhat wwtype wwof wwproperties? ww- wwAnswer ww1-4 wwUnit
wwResidential wwProperties
On wwa wwconventional wwmortgage wwloan, wwwho wwmakes wwthe wwfinal wwdecision
wwregarding wwapproval, wwdenial wwor wwcounter wwoffer? ww- wwAnswer wwThe
wwUnderwriter
, The wwCivil wwRights wwAct wwof ww1866, wwprohibited wwpublic wwand wwprivate wwracial
wwdiscrimination wwin wwany wwproperty wwtransaction wwand wwwas wwexpanded wwin
ww1968 wwin wwwhich wwact? ww- wwAnswer wwThe wwCivil wwRights wwAct wwof ww1968, wwalso
wwknown wwas wwTitle wwVIII wwof wwthe wwCivil wwRights wwAct ww, wwAlso wwknown wwas
wwTitle wwVIII, wwAlso wwKnown wwas wwThe wwFair wwHousing wwAct
Of wwthe wwfollowing, wwwhich wwis wwnot wwrequired wwto wwbe wwdisclosed wwon wwthe wwTIL
wwstatement? wwThe ww(1) wwAPR, ww(2) wwNote wwRate, ww(3) wwFinance wwCharge, ww(4)
wwAmount wwFinanced wwor ww(5) wwTotal wwof wwPayments ww- wwAnswer wwThe wwnote
wwrate wwis wwNOT wwrequired.
Which wwact wwof ww1968 wwprovides wwguidelines wwand wwrestrictions wwregarding wwthe
wwfinancing, wwselling wwand wwrenting wwof wwreal wwproperty? ww- wwAnswer wwThe wwCivil
wwRights wwAct wwof ww1968. wwAKA, wwThe wwCivil wwRights wwAct, wwAKA wwTitle wwVIII,
wwAKA wwThe wwFair wwHousing wwAct
Which wwact wwprohibits wwasking wwquestions wwregarding wwchild wwbearing wwintentions
wwor wwbirth wwcontrol wwpractices? ww- wwAnswer wwECOA/Regulation wwB, wwthe wwEqual
wwCredit wwOpportunity wwAct
Based wwon wwobjective wwcriteria wwregarding wwthe wwcondition wwand wwvalue wwof wwthe
wwproperty wwor wwarea, wwmay wwa wwlender wwdeny wwloans wwin wwneighborhoods
wwwhere wwproperty wwvalues wware wwdeclining? ww- wwAnswer wwYES, wwloans wwcan wwbe
wwdenied wwin wwa wwgeographic wwarea, wwbut wwnot wwfor wwdiscriminatory wwreasons
wwrelative wwto wwthe wwpopulation wwof wwthe wwarea.
A wwteaser wwrate wwoccurs wwin wwan wwARM wwwhen wwthe wwstarting wwrate wwis wwless
wwthan wwthe ww_____________. ww- wwAnswer wwFully wwindexed wwrate.
Per wwECOA, wwis wwit wwtrue wwthat wwwhile wwa wwlender wwmust wwconsider wwreliable
wwalimony, wwchild wwsupport wwor wwseparate wwmaintenance wwpayments wwas wwincome,
wwthe wwapplicant wwis wwnot wwrequired wwto wwdisclose wwsuch wwincome? ww- wwAnswer
wwYes, wwit wwis wwtrue. wwOnly wwincome wwintended wwto wwbe wwused wwfor wwqualifying
wwhas wwto wwbe wwdisclosed wwand wwverified.
Of wwthe wwfollowing, wwwho wwmake wwa wwflood wwzone wwdetermination? ww
1. wwThe wwLender
2. wwThe wwAppraiser
3. wwThe wwSurveyor
4. wwThe wwUnderwriter ww- wwAnswer ww2. wwThe wwAppraiser wwmakes wwthe wwflood
wwzone wwdetermination.
Force-placed wwinsurance wwprotects wwthe ww_________________. ww
a. wwLender
b. wwborrower
c. wwboth ww- wwAnswer wwa. wwlender
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