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NLSM MLO Safe Test Practice Questions With Correct Answers 2024
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NLSM MLO Safe Test Practice QuestionsWith Correct Answers 2024
Taking yadvantage yof yill-informed yconsumers ythrough yexcessively yhigh yfees,
ymisrepresented yloan yterms, yfrequent yrefinancing ythat ydoes ynot ybenefit ythe yborrower
yand yother yprohibited yacts yis ycalled y__________________________. y- ycorrect
yanswer.Predatory yLending.
RESPA-Real yEstate ySettlement yProcedures yAct y- ycorrect yanswer.The yFederal yStatute
ythat ydeals ywith ythe ysettlement yof yresidential ymortgage yloans.
RESPA's ysection y9 yProhibits y- ycorrect yanswer.Home ysellers yfrom yrequiring yhome
ybuyers yto ypurchase ytitle yinsurance yfrom ya yparticular ycompany yproviding ytitle yservices.
The yDodd-Frank yAct ymodifies yECOA yto yrequire ya ycreditor yto yfurnish ya ycopy yof yan
yappraisal ydeveloped yin yconnection ywith ya yfirst ymortgage_____________________ yand
yabsolutely ynot ylater ythan y________ ybusiness ydays yprior yto yclosing. y- ycorrect
yanswer.upon ycompletion yand y3 ybusiness ydays
TIL y(Truth yIn yLending yDisclosure) y& yGFE y(Good yFaith yEstimate) y- ycorrect yanswer.Per
ythe yDodd yFrank yAct, ya ysingle ydisclosure yform ycombines ythese y2 ystatements.
Per ythe yDodd-Frank yAcvt, yto ybe ya y"qualified ymortgage" ytotal ypoints yand yfees ymay ynot
yexceed y________% yof ythe ytotal yloan yamount. y- ycorrect yanswer.3% y(three ypercent)
Per ya yprovision yof ythe yDodd-Frank yAct ymortgage ylenders yare yto ydetermine ythat ya
yborrower yhas ya yreasonable yability yto yrepay ya yloan. yDoes ythis yprovision yapply yto yall
yloans yor yjust yowner yoccupied yloans? y- ycorrect yanswer.All yloans, ywhether yowner
yoccupied yor ynot.
A yloan ysubject yto yHOEPA yallows yprepayment ypenalties yfor ythe yfirst y______ yyears yof ythe
yloan. y- ycorrect yanswer.2 y(two) yyears
Per ythe yDodd-Frank yAct yan yabusive yact ywould yinclude ywhich yof ythe yfollowing:
1. yOne ythat ymaterially yinterferes ywith ythe yconsumers yability yto yunderstand ythe yproduct
yor yservice. y
2. yOne ythat ytake yunreasonable yadvantage yof ya yconsumers' ylack yof yunderstanding. y
3. yOne ythat ytakes yunreasonable yadvantage yof ythe yconsumer's yreasonable yreliance yon
ythe yMLO. y- ycorrect yanswer.All ythree ywould ybe yconsidered yabusive yacts.
,Per ythe yDodd-Frank yAct yif yan yMLO yreceives ycompensation ydirectly yfrom ya yconsumer,
yup yto yhow ymuch yadditional ycompensation ymay ybe yreceived yfrom ya ylender yin ythe ysame
ytransaction? y- ycorrect yanswer.$0.00, ydual ycompensation yis ynot yallowed. yCompensation
ymust ybe yborrower ypaid yor ylender ypaid.
What ykinds yof yreasons yare ynecessary yfor ya ylender yto ytake yadverse yaction ywith yregard yto
ya yborrower? y- ycorrect yanswer.Specific yreasons.
Adverse yaction ymeans y______________________. y- ycorrect yanswer.A ydenial yor
yrevocation yof ycredit. yAlso, ya ychange yin ythe yterms yof yan yexisting ycredit yarrangement yor ya
yrefusal yto ygrant ycredit yin ysubstantially ythe yamount yor yterms yrequested.
Per yRegulation yB, yLenders yshould yretain ycertain yrecords yfor y_____________ ymonths. y-
ycorrect yanswer.25 yMonths
Because yof ythe yimpact yof ythe yDodd-Frank yAct yon ya ysecond ymortgage, yan yAPR ythat
yexceeds ythe y________ yby ymore ythan y_____% yis ythe ytrigger ythat ydefines ya yhigh ycost
yloan. y- ycorrect yanswer.APOR y( yAverage yPrime yOffer yRate), y8.5%
Regulation yC yis yknown yas y________________________. y- ycorrect yanswer.HMDA, yThe
yHome yMortgage yDisclosure yAct.
What yis ythe ypurpose yof yHMDA? y- ycorrect yanswer.The yHMDA ydetermines ywhether
yfinancial yinstitutions yare yserving ythe yhousing yneeds yof ytheir ycommunities. yIt yalso
yidentifies ypatterns yof ydiscriminatory ylending.
Under ywhat ycircumstances ycan ya ylender ywith yan yAffiliated yBusiness yArrangement
yrequire ya yborrower yto yuse ya yspecific ythird yparty yservice yprovider? y- ycorrect yanswer.If
ythere yare yno ykickback yor yreferral yfees yand ythe yservice yprovider yis yan yattorney, ycredit
yreporting yagency yor yappraiser ythe ylender ycan yrequire ythat ythe yborrower yuses ythe
yprovider
If ya ytransfer yof yservicing yoccurs, ythe y_______________ ymust yprovide ya yservicing
ytransfer ystatement ynot yless ythan y________ ydays ybefore ythe ytransfer yoccurs. y- ycorrect
yanswer.Servicer, y15 y(fifteen) ydays.
An yindividual ywho yfails ythe yMLO ywritten yexam y3 ytimes ymust ywait y_________ ymonths yto
yretake ythe yexam. y- ycorrect yanswer.6 y(Six) yMonths
Per yRESPA, yan yannual yescrow ystatement yis yrequired yto y______________. y- ycorrect
yanswer.determine yshortages yand ysurpluses yin ythe yescrow yaccount.
When ymust ythe yServicing yDisclosure yStatement ybe yprovided yto ythe yborrower? y- ycorrect
yanswer.Within y3 y(three) yBusiness yDays yof ythe yApplication.
, Any yparty yinvolved yin ya yfederally ycovered yloan ythat ysubmits yfraudulent yinformation yis
ysubject yto ya yfine yof yup yto y$___________ yand yup yto y__________years yin yprison. y-
ycorrect yanswer.$1,000,000 y(one ymillion ydollars), y30 yyears yin yprison
Per yRESPA, yan yescrow ycushion yis ylimited yto ya ymaximum yof y_________ yof ythe yannual
ypayments yand ysurpluses yover y$_____must ybe yrefunded ywithin y________ ydays. y-
ycorrect yanswer.1/6th y(2 ymonths), y$50 y(fifty ydollars), y30 y(thirty) ydays.
A yseller ytakes yback ya y$100,000 yPMM y@ y5.5% yinterest. yThis ystraight ynote ywill yballoon
yafter y10 yyears yof ypayments. yHow ymuch yis ythe yballoon ypayment? y- ycorrect
yanswer.$100,000 y+ yinterest yfor ythe ylast ymonth. yA ystraight ynote y(term ymortgage) yis ya
ynon-amortizing yinterest yonly ymortgage. yThe yballoon ywould yinclude ythe yentire yprincipal
yplus ythe ylast ymonth's yinterest, yas yinterest yis ypaid yin yarrears.
FNMA yconforming ydebt yratios yequal y______/________. y- ycorrect yanswer.28%,
ymaximum yhousing yexpense/36% ymaximum ytotal yobligations
HOEPA ystands yfor y___________________________. y- ycorrect yanswer.Home
yOwnership yand yEquity yProtection yAct.
RESPA yapplies yto ywhat ytype yof yproperties? y- ycorrect yanswer.1-4 yUnit yResidential
yProperties
On ya yconventional ymortgage yloan, ywho ymakes ythe yfinal ydecision yregarding yapproval,
ydenial yor ycounter yoffer? y- ycorrect yanswer.The yUnderwriter
The yCivil yRights yAct yof y1866, yprohibited ypublic yand yprivate yracial ydiscrimination yin yany
yproperty ytransaction yand ywas yexpanded yin y1968 yin ywhich yact? y- ycorrect yanswer.The
yCivil yRights yAct yof y1968, yalso yknown yas yTitle yVIII yof ythe yCivil yRights yAct y, yAlso yknown
yas yTitle yVIII, yAlso yKnown yas yThe yFair yHousing yAct
Of ythe yfollowing, ywhich yis ynot yrequired yto ybe ydisclosed yon ythe yTIL ystatement? yThe y(1)
yAPR, y(2) yNote yRate, y(3) yFinance yCharge, y(4) yAmount yFinanced yor y(5) yTotal yof
yPayments y- ycorrect yanswer.The ynote yrate yis yNOT yrequired.
Which yact yof y1968 yprovides yguidelines yand yrestrictions yregarding ythe yfinancing, yselling
yand yrenting yof yreal yproperty? y- ycorrect yanswer.The yCivil yRights yAct yof y1968. yAKA, yThe
yCivil yRights yAct, yAKA yTitle yVIII, yAKA yThe yFair yHousing yAct
Which yact yprohibits yasking yquestions yregarding ychild ybearing yintentions yor ybirth ycontrol
ypractices? y- ycorrect yanswer.ECOA/Regulation yB, ythe yEqual yCredit yOpportunity yAct
Based yon yobjective ycriteria yregarding ythe ycondition yand yvalue yof ythe yproperty yor yarea,
ymay ya ylender ydeny yloans yin yneighborhoods ywhere yproperty yvalues yare ydeclining? y-
ycorrect yanswer.YES, yloans ycan ybe ydenied yin ya ygeographic yarea, ybut ynot yfor
ydiscriminatory yreasons yrelative yto ythe ypopulation yof ythe yarea.
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