borrower wants a Cash Out refinance for 80% LTV on a house that appraises for $250,000. The borrower has a first mortgage of $87,000 and a second for $25,000. Closing costs will equal $3,000. How much cash is available for the borrower to receive?
Your Answer
$30,000
$85,000
$115,000
...
MLO TEST PREP 2024 (ANSWERED
CORRECTLY)
borrower wants a Cash Out refinance for 80% LTV on a house that appraises for $250,000. The borrower
has a first mortgage of $87,000 and a second for $25,000. Closing costs will equal $3,000. How much
cash is available for the borrower to receive?
Your Answer
$30,000
$85,000
$115,000
$200,000 - Correct Answer $85,000
80% of $250,000 is $200,000. $200,000 minus the first, second and closing costs = $85,000. The
borrower has $85,000 in cash available.
Relevant financial information about an applicant who applies for an FHA or conventional residential
mortgage is entered on:
Your Answer
FNMA form 1008.
FNMA form 1003.
FNMA form 1005.
,FHLMC form 95. - Correct Answer FNMA form 1003.
Section 32 is part of which federal law?
Your Answer
ECOA
HMDA
RESPA
TILA - Correct Answer TILA
After the crisis of the Great Recession according to Conventional underwriting when can a borrower
repurchase again after a foreclosure?
Your Answer
7 years from the deed transfer date
5 years from the deed transfer date
2 years from the deed transfer date
3 years from the deed transfer date - Correct Answer 7 years from the deed transfer date
How much money is required for fire insurance on a refinance at settlement?
Your Answer
14 months
,1 year
2 months
Whatever is needed to renew coverage when the insurance expires - Correct Answer Whatever is
needed to renew coverage when the insurance expires
Which of the following is not true about HOEPA?
Your Answer
It makes recommending default on a high-cost transaction illegal
It makes charging fees for a payoff statement prohibited
It prohibits negative amortization on high-cost home loans
The late fee on a high-cost home loan cannot exceed 3% - Correct Answer The late fee on a high-cost
home loan cannot exceed 3%
If two people are married, how do they likely hold title?
Your Answer
Tenancy by the Entirety
Joint Tenancy
Tenancy in Common
, Ownership in severalty - Correct Answer Tenancy by the Entirety
In qualifying the income of a sole proprietor borrower, the originator should consider which of the
following to be most important?
Your Answer
Form 1040 adjusted gross income
Schedule C net income
Expenses reported on Form 2106
Schedule C net income plus non-cash expenses and depreciation - Correct Answer Schedule C net
income plus non-cash expenses and depreciation
Quincey is looking to do home improvements on his home, he does not particularly want to refinance his
current mortgage and take cash out and he would like some flexibility on how much cash he gets. What
is a good option for Quincey?
Your Answer
A reverse mortgage
A HELOC
A bridge loan
A construction loan - Correct Answer A HELOC
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Victoria108. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
