MLO Test Practice Questions and Answers | Latest Version | 2024/2025 | Graded A+

MLO Test Practice Questions and Answers | Latest Version | 2024/2025 | Graded A+ 6. According to the Truth-in-Lending Act (TILA), the term "refinance" applies to: (A) a reduction in APR. (B) a change in a payment schedule. (C) the renewal of a single payment obligation with no change in the original terms. (D) the satisfaction of an existing obligation and its replacement by a new obligation (D) the satisfaction of an existing obligation and its replacement by a new obligation 7. Which of the following documents does a mortgage loan originator use to determine the estimated value of a property based on an analytical comparison of similar property sales? (A) An appraisal (B) An area survey (C) A market survey (D) A cost-benefit analysis (A) An appraisal 8. According to the Equal Credit Opportunity Act (ECOA), age discrimination by a mortgage lender is acceptable: (A) not under any circumstance. (B) only if the applicant is too young to enter into a legally binding contract. (C) only if life expectancy data indicates an applicant will not be alive at the end of the loan term. (D) only if the applicant is too young or too old to understand the ramifications of defaulting on a legal debt. (B) only if the applicant is too young to enter into a legally binding contract. 1. Included in the Loan Estimate, all of the following are part of the finance charge except the: (A) appraisal cost. (B) VA funding fee. (C) per diem interest. (D) origination charges A) appraisal cost. 2. A buyer has made an earnest money payment of $5,000. The buyer pays an additional $2,000 in option money to be credited at closing on a property with a sale price of $160,000. If the required down payment is 20%, how much additional money will the buyer need to provide toward the down payment at closing? (A) $25,000 (B) $27,000 (C) $30,000 (D) $32,000 (A) $25,000 $160,000 (sale price) x .20 (down payment percentage) = $32,000; $32,000 - [$5,000 (earnest money) + $2,000 (option money)] = $25,000 3. If an applicant works 40 hours every week and is paid