Exam (elaborations)
MLO SAFE NMLS Safe Test Practice Questions and Answers
MLO SAFE NMLS Safe Test Practice Questions and Answers
[Show more]
Content preview
MLO SAFE NMLS Safe Test Practice Questions andAnswers
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?
CORRECT ANS-$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? CORRECT ANS-Specific reasons.
Adverse action means ______________________. CORRECT ANS-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.
CORRECT ANS-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. CORRECT ANS-
APOR ( Average Prime Offer Rate), 8.5%
, MLO SAFE NMLS Safe Test Practice Questions and
Answers
Regulation C is known as ________________________. CORRECT ANS-HMDA, The Home
Mortgage Disclosure Act.
What is the purpose of HMDA? CORRECT ANS-The HMDA determines whether financial
institutions are serving the housing needs of their communities. It also identifies patterns of
discriminatory lending.
Under what circumstances can a lender with an Affiliated Business Arrangement require a
borrower to use a specific third party service provider? CORRECT ANS-If there are no
kickback or referral fees and the service provider is an attorney, credit reporting agency or
appraiser the lender can require that the borrower uses the provider
If a transfer of servicing occurs, the _______________ must provide a servicing transfer
statement not less than ________ days before the transfer occurs. CORRECT ANS-Servicer,
15 (fifteen) days.
An individual who fails the MLO written exam 3 times must wait _________ months to retake
the exam. CORRECT ANS-6 (Six) Months
, MLO SAFE NMLS Safe Test Practice Questions and
Answers
Taking advantage of ill-informed consumers through excessively high fees, misrepresented
loan terms, frequent refinancing that does not benefit the borrower and other prohibited acts
is called __________________________. CORRECT ANS-Predatory Lending.
RESPA-Real Estate Settlement Procedures Act CORRECT ANS-The Federal Statute that deals
with the settlement of residential mortgage loans.
RESPA's section 9 Prohibits CORRECT ANS-Home sellers from requiring home buyers to
purchase title insurance from a particular company providing title services.
The Dodd-Frank Act modifies ECOA to require a creditor to furnish a copy of an appraisal
developed in connection with a first mortgage_____________________ and absolutely not
later than ________ business days prior to closing. CORRECT ANS-upon completion and 3
business days
TIL (Truth In Lending Disclosure) & GFE (Good Faith Estimate) CORRECT ANS-Per the Dodd
Frank Act, a single disclosure form combines these 2 statements.
, MLO SAFE NMLS Safe Test Practice Questions and
Answers
Per the Dodd-Frank Acvt, to be a "qualified mortgage" total points and fees may not exceed
________% of the total loan amount. CORRECT ANS-3% (three percent)
Per a provision of the Dodd-Frank Act mortgage lenders are to determine that a borrower has
a reasonable ability to repay a loan. Does this provision apply to all loans or just owner
occupied loans? CORRECT ANS-All loans, whether owner occupied or not.
A loan subject to HOEPA allows prepayment penalties for the first ______ years of the loan.
CORRECT ANS-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.
CORRECT ANS-All three would be considered abusive acts.
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 TheeGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82871 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now