MLO Mortgage Exam| 1893 QUESTIONS| WITH COMPLETE SOLUTIONS

The federal Truth in Lending Act Correct Answer: regulates advertising with references to mortgage interest rates. Which would LEAST LIKELY be a changed circumstance that would trigger the need to provide a new GFE to a borrower? Correct Answer: The mortgage loan originator learns that the alimony the borrower receives (which was not included in her income analysis) will cease after she is remarried next month. What fact about a borrower may an underwriter take into consideration when approving a mortgage loan application? Correct Answer: likelihood of continued income ABC Bank receives a change of address request from a consumer. What requires the bank to follow up with him to verify the validity of the request? Correct Answer: Red Flag Rules Hypothecation occurs in a purchase transaction closing Correct Answer: Using property as collateral without surrendering use or possession of it. Each of these loans would be excluded under the definition of a higher-priced loan EXCEPT Correct Answer: a purchase loan. A Truth in Lending Statement must be given to a consumer no later than ________ business days prior to closing a home loan. Correct Answer: 7 The tradeoff table is a tool to assist consumers that appears on the Correct Answer: Good Faith Estimate. A mortgage loan originator hands the borrower a GFE and a TIL in his office the day after the application was completed. The MLO can charge the borrower for an appraisal Correct Answer: That day. Who is responsible for the accurate accounting of all monies due to and from the parties in a real estate sale? Correct Answer: Settlement or escrow agent What risk is PMI intended to cover? Correct Answer: Default on loan repayment A lender learns that a real estate agent encouraged an appraiser to hit a specific value for a property. The lender Correct Answer: Can use the appraisal and close the loan if the lender can document that the appraisal does not materially misrepresent the value. A lender has how many days to notify the borrower of an underwriting decision? Correct Answer: 30