MLO SAFE NMLS safe test practice exam questions and answers

MLO SAFE NMLS safe test practice exam questions and answers A loan subject to HOEPA allows prepayment penalties for the first ______ years of the loan. - Answer-2 (two) years Per the Dodd-Frank Act an abusive act would include which of the following: 1. One that materially interferes with the consumers ability to understand the product or service. 2. One that take unreasonable advantage of a consumers' lack of understanding. 3. One that takes unreasonable advantage of the consumer's reasonable reliance on the MLO. - Answer-All three would be considered abusive acts. Per the Dodd-Frank Act if an MLO receives compensation directly from a consumer, up to how much additional compensation may be received from a lender in the same transaction? - Answer-$0.00, dual compensation is not allowed. Compensation must be borrower paid or lender paid. What kinds of reasons are necessary for a lender to take adverse action with regard to a borrower? - Answer-Specific reasons. Adverse action means ______________________. - Answer-A denial or revocation of credit. Also, a change in the terms of an existing credit arrangement or a refusal to grant credit in substantially the amount or terms requested. Per Regulation B, Lenders should retain certain records for _____________ months. - Answer-25 Months Because of the impact of the Dodd-Frank Act on a second mortgage, an APR that exceeds the ________ by more than _____% is the trigger that defines a high cost loan. - Answer-APOR ( Average Prime Offer Rate), 8.5% Regulation C is known as ________________________. - Answer-HMDA, The Home Mortgage Disclosure Act. What is the purpose of HMDA? - Answer-The HMDA determines whether financial institutions are serving the housing needs of their communities. It also identifies patterns of discriminatory lending.