NMLS MLO Exam | 220 Questions with 100% Correct Answers | Verified | Latest Update 2024

NMLS MLO Exam | 220 Questions with 100% Correct Answers | Verified | Latest Update 2024 What must a borrower do to avoid having late payments reported to a credit bureau? - ✔✔Pay within 30 days of due date Max penalty if a borrower is required to use a specific title company or settlement agent? - ✔✔3 times the fee What should not be over -weighted in an analysis of borrower repayment capacity? - ✔✔Credit scores Max prepayment penalty on residential mortgages in the first year of the loan - ✔✔3% What must condominium associations do with respect to property insurance? - ✔✔Keep a "blanket" policy that protects the entire structure If a lender is planning on referring a borrower to a title company that the lender has ownership in, when must the AFBA must be provided to the borrower? - ✔✔Before the referral to the title company is made Website to obtain copy of your credit report that the credit bureaus are required to provide once per year at no charge - ✔✔annualcreditreport.com 2/3/6 caps - ✔✔ARM initial adjustment max is 2%, subsequent adjustment period max is 3%, and lifetime cap of 6% What does FHLB stand for and what do they provide? - ✔✔Federal Home Loan Bank, and they provide advances to financial institutions for residential mortgage loans According to the Dodd -Frank Act, how much risk must be retained by the securitizer for a loan that does not meet QRM guidelines? - ✔✔5% On a purchase transaction, what document contains the purchase price for a property? - ✔✔Sales Contract After a loan has been closed and funded, the creditor notices a tolerance violation with a fee between the LE and CD. How long does the creditor have to reimburse the borrower for the overcharge before being considered in violation of the TRID rule? - ✔✔60 days after closing According to the Dodd -Frank Act, how much risk must be retained by the securitizer for a loan that does not meet QRM guidelines? - ✔✔5% Overt Discrimination - ✔✔Refusing service to anyone of a certain race, ethnicity, etc. Under ECOA can you ask how many children a borrower has? - ✔✔No What document specifies that a property is being used as security in the event of nonpayment of a debt? - ✔✔Mortgage On the LE, which piece of data tells applicants how much they will be paying in interest over the life of the loan as a percentage of the loan? - ✔✔TIP (Total Interest Percentage) COFI comes from what region in the country? - ✔✔The 11th Federal Home Loan Bank (Arizona, California, and Nevada) What disclosure is required to be provided to the applicant within 3 days of application under reg x? - ✔✔Mortgage Loan Servicing Disclosure Verification of cash used in a closing is documented by: - ✔✔last 2 -3 months bank statements The finance charge is the total cost of: - ✔✔the loan in dollars, including points and mortgage insurance What IRS forms would you requrest from a borrower who is 40% shareholder in a C -Corporation? - ✔✔Form 1120 Impersonating someone else in an attempt to obtain their personal financial information is called: - ✔✔Pretexting What type of funding occurs when a lender obtains funds from a line of credit at a commercial bank? - ✔✔Warehouse funding Late fee for FHA and VA loans - ✔✔4% Ginnie Mae _____ loans - ✔✔Guarantees A mortgage on personal property is: - ✔✔Chattel mortgage Who can transfer title insurance policy? - ✔✔Mortgagee What document is NOT recorded? - ✔✔The Note The borrower's IOU is: - ✔✔The Note Escheat - ✔✔When a property owner dies without a will and the state is unable to locate any heirs, so the state claims the property. Disintermediation - ✔✔The withdrawal of funds out of savings accounts and into stocks and bonds Eminent Domain - ✔✔The condemnation of private property for public good