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MLO Practice questions 2.0
  • AyannaDesirée

  • 問題数 61 • 2/21/2025

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    問題一覧

  • 1

    what is the maximum seller concessions on conventional loans if the LTV is over 90% ?

    3%

  • 2

    What are the maximum seller concessions for FHA loans?

    6%

  • 3

    What are the maximum seller concessions for VA loans?

    4%

  • 4

    What are the maximum seller concessions for USDA Loans?

    6%

  • 5

    What are the 2 appraisals of VA Loans?

    NOV & CRV

  • 6

    What items 6 items make up a complete application?

    Name , Social Security Number , Income , Loan amount , Subject Property’s Address, Estimate of subject property’s value

  • 7

    Where is HMDA information found on the 1003 loan application?

    Section 8

  • 8

    HOEPA applies to which one of the following types of loans?

    Refinances

  • 9

    Under the “Late Payment” heading of a LE, there is a statement that states if 10 days pass after a payment is due, a $300 charge will apply. Does this statement conform to federal regulations? why or why not ?

    Yes. This statement satisfies all as par ts of the relvant regulation

  • 10

    Which Tolerance threshold applies to escrow accounts

    No or Unlimited Tolerance

  • 11

    A borrower just received a large bonus, which she plans to use for the down payment of her house. For how many days must the money be in her bank account for her to be able to use the funds ?

    60 days

  • 12

    What information does schedule B-1 of an ALTA title commitment provide ?

    Requirements that must be met before a title policy will be issued

  • 13

    What information does schedule B-2 of an ALTA title commitment provide ?

    identifies standard exceptions, or flaws, that are not being insured in the policy.

  • 14

    The Dodd Frank Act created CFPB to Promote transparency for mortgages and other financial products (T/F)?

    True

  • 15

    Which of these statement is true about Qualified mortgages ?

    it meets CFPB guidelines

  • 16

    How long must all mortgage loan advertisements and commercial communication regarding a mortgage credit report to be retained for?

    2 years

  • 17

    As an MLO what are you permitted to ask the prospective borrower if they have any children?

    “How many dependents do you have?”

  • 18

    As an MLO what may you ask a prospective borrower regarding their marital status?

    “Are you Married, Unmarried or Separated?”

  • 19

    What is a Defeasance Clause ?

    A clause that requires the borrower to pay off their loan & the lender is required to send a satisfaction of mortgage notice to the borrower within 60 days of paying off the loan

  • 20

    What’s a Subordination clause?

    A clause that permits a senior mortgage to assume a junior lien position

  • 21

    What’s a Escalation Clause?

    Allows the lender to increase the interest rate of the loan under certain conditions

  • 22

    What’s a Lis pendens?

    A notice filed by the lender when it initiates a foreclosure lawsuit

  • 23

    What are the three common dispersement plans in a construction mortgage?

    Voucher, Fixed & Warrants

  • 24

    What’s a FHA Reverse Mortgage Called?

    HECM

  • 25

    What’s the Penalty for violations the SAFE Act?

    $34,401 per violation

  • 26

    Who enforces FCRA ?

    FTC

  • 27

    Who enforces TILA?

    CFPB

  • 28

    Who enforces RESPA?

    CFPB

  • 29

    Who created DNC List?

    FTC & FCC

  • 30

    Who implemented HMDA

    FRB

  • 31

    Who created Red Flag Rules ?

    FTC & FACTA

  • 32

    What’s the IRS Form 8821

    Tax information authoritization

  • 33

    What’s the 4506 C?

    Request for transcript of tax return

  • 34

    What’s a QWR?

    A Qualified Written Request that imposes a duty to respond to borrowers inquiries & requires that the lender acknowledge receipts of the request within 5 business days & seek to resolve the issues within 30 days with a 15 day extension if needed, if it’s connection to notices of error submitted by the borrower.

  • 35

    TILA applies to credit transactions payable in how many installments

    5 installments or more

  • 36

    How many pages is the CD?

    5 pages

  • 37

    How many pages is the LE?

    3 pages

  • 38

    When a settlement service provider asks in a transaction refers a consumer to another provider with ownership or beneficial interest of more than 1% what should be provided?

    Affiliated Business Arrangement

  • 39

    At what percentage of ownership interest is the RESPA Affiliated Business Arrangement disclosure required to be provided to borrowers ?

    1%

  • 40

    when should the service provider provide the ABA form to the consumer ?

    At or Before referral ( or immediately)

  • 41

    ABA stands for ?

    Affiliated Business Arrangement

  • 42

    Is the consumer obligated to use the affiliated business arrangement?

    No

  • 43

    For 2025, a consumer loan secured by the consumer's principal dwelling is considered a high-cost mortgage (HOEPA) if the total points and fees exceed either__ of the total loan amount for loans of $26,968 or more,

    5%

  • 44

    How long must lenders maintain records of all compensation paid to loan originators after payment date?

    3 years

  • 45

    How long must loan originators retain copies of all compensation agreements with creditors & any documents of payments made by creditors to the loan origination?

    3 years

  • 46

    Creditor must provide the new owner with a copy of the disclosures, How long must the new owner retain the records ?

    5 years

  • 47

    Are MLOs required to provide their UI to consumers before acting as an MLO & through written documentation?

    Yes MLOs must provide their UI to consumers when required

  • 48

    What type of loan are not assumable ?

    Conventional

  • 49

    NMLS considers “Successive years” to mean:

    2 years

  • 50

    If a MLO need to change NMLS record such as their name, address, employment, legal status or other disclosure. What is the MLO required to do?

    Notify NMLS immediately

  • 51

    To obtain temporary authority a MLO must:

    Be employed by a state licensed mortgage company in the state they’re applying to, registered as an MLO for 1 year preceding the application submission or for 30 days preceding the application date

  • 52

    The NMLS period for renewing license begins:

    November 1

  • 53

    The NMLS period for renewing license ends:

    December 31

  • 54

    When does currency transaction report have to be filed?

    within 15 calendar days

  • 55

    Where is borrowers Name found on the uniform residential loan application

    Section 1

  • 56

    Where can you locate information about prospective borrowers income on fannie form 1003

    Section 1

  • 57

    In which section of URLA can you locate loan amount sought

    section 4

  • 58

    Section 8 in form 1003 contains information about prospective borrower’s:

    Demographics

  • 59

    which section contains information about prospective borrowers assets & liabilities on URLA

    section 2

  • 60

    Hard inquiries typically:

    are triggered by a formal loan application & can affect the borrowers credit score

  • 61

    Soft Inquiries is best defined as:

    inquiries used for prequalification that does not affect the borrowers credit score