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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

    Is the consumer obligated to use the affiliated business arrangement?

    No

  • 2

    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.

  • 3

    What are the maximum seller concessions for FHA loans?

    6%

  • 4

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

    Voucher, Fixed & Warrants

  • 5

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

    At or Before referral ( or immediately)

  • 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

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

    Demographics

  • 8

    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

  • 9

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

    “Are you Married, Unmarried or Separated?”

  • 10

    How many pages is the CD?

    5 pages

  • 11

    What are the maximum seller concessions for USDA Loans?

    6%

  • 12

    Who created DNC List?

    FTC & FCC

  • 13

    What’s the Penalty for violations the SAFE Act?

    $34,401 per violation

  • 14

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

    1%

  • 15

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

    5 years

  • 16

    TILA applies to credit transactions payable in how many installments

    5 installments or more

  • 17

    Where is borrowers Name found on the uniform residential loan application

    Section 1

  • 18

    Who enforces RESPA?

    CFPB

  • 19

    Soft Inquiries is best defined as:

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

  • 20

    What’s the IRS Form 8821

    Tax information authoritization

  • 21

    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

  • 22

    What’s a Escalation Clause?

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

  • 23

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

    True

  • 24

    Hard inquiries typically:

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

  • 25

    What are the maximum seller concessions for VA loans?

    4%

  • 26

    NMLS considers “Successive years” to mean:

    2 years

  • 27

    Which Tolerance threshold applies to escrow accounts

    No or Unlimited Tolerance

  • 28

    Who implemented HMDA

    FRB

  • 29

    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

  • 30

    How many pages is the LE?

    3 pages

  • 31

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

    Section 1

  • 32

    What’s a Lis pendens?

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

  • 33

    What are the 2 appraisals of VA Loans?

    NOV & CRV

  • 34

    Who enforces TILA?

    CFPB

  • 35

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

    section 2

  • 36

    The NMLS period for renewing license begins:

    November 1

  • 37

    Which of these statement is true about Qualified mortgages ?

    it meets CFPB guidelines

  • 38

    The NMLS period for renewing license ends:

    December 31

  • 39

    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%

  • 40

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

    3%

  • 41

    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

  • 42

    Who created Red Flag Rules ?

    FTC & FACTA

  • 43

    What’s a FHA Reverse Mortgage Called?

    HECM

  • 44

    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

  • 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

    When does currency transaction report have to be filed?

    within 15 calendar days

  • 47

    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

  • 48

    Who enforces FCRA ?

    FTC

  • 49

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

    3 years

  • 50

    In which section of URLA can you locate loan amount sought

    section 4

  • 51

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

    2 years

  • 52

    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.

  • 53

    What’s the 4506 C?

    Request for transcript of tax return

  • 54

    What type of loan are not assumable ?

    Conventional

  • 55

    ABA stands for ?

    Affiliated Business Arrangement

  • 56

    What’s a Subordination clause?

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

  • 57

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

    “How many dependents do you have?”

  • 58

    Where is HMDA information found on the 1003 loan application?

    Section 8

  • 59

    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

  • 60

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

    Refinances

  • 61

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

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