RMLO 2023 QUESTIONS AND ANSWERS A+ GRADED. Buy Quality Materials!
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RMLO 2023 QUESTIONS AND ANSWERS A+ GRADED. Buy Quality Materials!
Which of the following transactions are covered by the TRID rule? (TILA-RESPA Integrated Disclosures)
Construction loans
The CFPB's Final Rule prohibits residential mortgage loan originator compensation be based on which of th...
RMLO 2023 QUESTIONS AND ANSWERS A+
GRADED. Buy Quality Materials!
Which of the following transactions are covered by the TRID rule? (TILA-RESPA
Integrated Disclosures)
Construction loans
The CFPB's Final Rule prohibits residential mortgage loan originator
compensation be based on which of the following?
Yield spread premium of a mortgage loan
Under the Red Flags Rules, mortgage loan originators must develop a written
program that identifies and detects the warning signs of
Identity theft
The activities carried out by the HUD's Office of Fair Housing and Equal
Opportunity include implementing and enforcing the
Fair Housing Act
The Secure and Fair Enforcement for Mortgage licensing Act of 2008 is a key
component of what Federal Law?
Housing and Economic Recovery Act of 2008
The Electronic Signature in Global and National Commerce Act (ESign Act) made
it possible to conduct business online by legitimizing electronic signatures. The
E-Sign Act requires all the following except
That a signature, contract, or other record relating to all transactions may not be denied
legal effect, validity, or enforceability solely because it is in electronic form
As defined by the SAFE Act, a tranditional mortgage loan is
Any 30 year fixed rate mortgage loan
To meet the annual continuing education requirements required by the SAFE Act,
a licensed mortgage loan originator shall complete
At least 8 hours of education approved by the National Mortgage Licensing System and
Registry
Xavier has been charged with alleged violations of his state's SAFE Act. Before a
civil penalty may be imposed on him, the state is required to
Provide Xavier notice and an opportunity for a hearing
For purposes of the SAFE ACT, a person has shown that he or she is nor
financially responsible when they show a disregard in the management of their
own financial condition. Which of the following would best indicate that an
individual has not shown financial responsibility
A pattern of seriously delinquent accounts within the past 3 years
Which of the following persons is not exempt from licensing under the SAFE Act?
An individual who is an independent contractor engaging in residential mortgage loan
origination activities as a loan processor or underwriter
To be a qualified mortgage, the Truth in Lending Act specifies that the mortgage
and creditor must meet all the following criteria except
Must not result an increase of the principal balance (negative amortization)
,The Truth in lending act required residential mortgage loan originators to make
certain "material disclosures" on loans subject to the Real Estate Settlement
Procedures Act within three
Business days after their receipt of a written application
The Truth in Lending Act's advertising provisions require that if an advertisement
promoting "closed end credit" contains a "triggering term" three specific
disclosures must also be included in the advertisement. Which of the following is
not considered a "triggering term" under Regulation Z?
The Annual Percentage Rate
The Fraud Enforcement and Recovery Act (FERA) was signed into law by
president Barack Obama in May 2009. It increased the penalties for a federal
conviction for mortgage fraud to a maximum for
30 years in federal prison or $1000000 fine or both
According to fair lending laws, age may be considered a factor in denying a loan
application if
The applicant is too young to enter a binding contract
What Federal law protects the privacy of the consumer and requires a loan
originator to provide a clear, conspicuous, and accurate statement of the
company's privacy practices?
Gramm Leach Bliley Act
A Residential Mortgage Loan Originator employed by a federally insured
depository institution
must be registed
All licenses issued shall be valid for a term of not more than one year from the
date of issuance and shall expire
on December 31st of the year issued
To meet the written test requirement of the SAFE Act, an individual must achieve
a test score
of not less than 75 percent correct answers to questions
An individual who completed 20 hours pre-licensure education but failed to
acquire a valid state license as a mortgage loan originator within three years
must
complete 20 hours of Pre-licensure education
An Individual may retake a test 2 consecutive times, with each consecutive taking
occurring at least 30 days after the preceding test. After failing consecutive test,
an individual shall
Wait at least 6 months before taking the test again
A licensed mortgage loan originator who subsequently becomes unlicensed must
complete the continuing education requirements
For the last year in which the license was held prior to issuance of a new or renewed
license
The unique identifier of a person originating a residential mortgage loan must be
clearly shown on all the following except
all internal office communications
A realtor has referred to you a buyer in need of a mortgage loan to purchase a
property. During the loan application interview, the applicant asks, how much
, additional income do I need to show in order to qualify for a 15 year fixed rate
mortgage? What is the most ethical response?
Let's review your tax returns and bank statements to determine your income
When a lender applies a policy or practice equally to credit applicants, but the
policy or practice has a disproportionate adverse consequence on applicants
from a group protected against discrimination, the policy or practice is described
as
disparate impact
A real estate licensee, for a $50 fee per lead, offers a mortgage company names
and telephone numbers of all the people who attended an open house. Who is in
violation of RESPA?
Neither the mortgage company or the real estate licensee
A mortgage professional who violates the RESPA prohibition on referral fees is
subject to
Fines of $10,000 and up to one year in prison
A consumer requests the name of a good attorney from a residential mortgage
loan originator. The RMLO provides a list of three attorneys they have conducted
business with in the past. The RMLO does not have an affiliated relationship or a
direct or beneficial ownership relationship with any of the attorneys. When,
according to RESPA, must the RMLO provide the affiliated business arrangement
disclosure to the consumer?
The RMLO is not required to give a disclosure if they have no interest in any of the
referred parties
Which of the following actions by a loan originator would be a violation of the
Equal Credit Opportunity Act (ECOA)
Not considering income offered by the applicant that is obtained from a public
assistance program
A loan originator's company policy requires that each transaction earn $3000 in
branch fees. The originator recently closed and funded a loan for a relative. The
loan amount was $250k. The originator collected fees of $750 only. According to
the information given and the ECOA, the loan originator acted
Legally / Unethically
A mortgage loan originator has a 40% ownership of a survey company. The
mortgage broker refers business to the survey company and provides a written
disclosure (CBA), prior to the time of referral, to the borrower of their business
relationship. The written disclosure also makes it clear that the borrower is not
required to use the services of the survey company. Who is in violation of RESPA
section 8?
Neither the mortgage broker nor the survey company.
A CURRENT AND VERIFIED LIABILITY APPEARS ON AN APPLICANT'S CREDIT
REPORT; HOWEVER, IT WAS NOT SHOWN ON THEIR LOAN APPLICATION.
WHAT WOULD BE THE MOST APPROPRIATE COURSE AND CONTINUE
PROCESSING THE LOAN.
Request a reasonable explanation and documentation to support the explanation for the
undisclosed debt from the applicant
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