MLO

What do mortgage brokers do? Correct Answer: Act as intermediaries between borrowers and lenders. Which statement about Ginnie Mae is true? Correct Answer: Ginnie Mae guarantees mortgage-backed securities. All of the following are examples of primary market mortgage lenders except: Correct Answer: A federal home loan mortgage corporation. All of the following are examples of primary market mortgage lenders: Correct Answer: Credit unions, S & L's and commercial banks. Which GSE h...

According to the FCRA, when must a credit agency give a consumer a free copy of his credit report? A.)If the loan application is denied because of information in the report B.) Whenever he request it Correct Answer: A.)If the loan application is denied because of information in the report A Consumer comes into your office to apply for a loan. The Home Mortgage Disclosure Act requires you to collect information about her race. If she does not wish to provide information for that section...

An Approve/Eligible determination: 1. Is an indication that a property appraised for its sales price 2. Authorization to release funds in a refinance transaction 3. An automated loan approval from the Fannie Mae Du system 4. A recommendation that is received by the Freddie Mac loan prospector automated underwriting system. Correct Answer: 3. An automated loan approval from the Fannie Mae Du system.. this means that the borrower meets the credit requirements and all other loan factors are a...

The federal Truth in Lending Act Correct Answer: regulates advertising with references to mortgage interest rates. Which would LEAST LIKELY be a changed circumstance that would trigger the need to provide a new GFE to a borrower? Correct Answer: The mortgage loan originator learns that the alimony the borrower receives (which was not included in her income analysis) will cease after she is remarried next month. What fact about a borrower may an underwriter take into consideration when a...

All of the following information is provided under Section X of the 1003, except: a.) Ethnicity b.) Name and address of employer c.) Sex d.) Race Correct Answer: b.) Name and address of employer Section X of the URLA contains information on: a.) Assets and Liabilities b.) Information for Government Monitoring Purpose c.) Declarations d.) Details of transaction Correct Answer: b.) Information for Government Monitoring Purpose When determining the best options for a potential b...

The federal Truth in Lending Act Correct Answer: regulates advertising with references to mortgage interest rates. Which would LEAST LIKELY be a changed circumstance that would trigger the need to provide a new GFE to a borrower? Correct Answer: The mortgage loan originator learns that the alimony the borrower receives (which was not included in her income analysis) will cease after she is remarried next month. What fact about a borrower may an underwriter take into consideration when a...

Massachusetts' predatory lending law Correct Answer: Predatory Home Loan Practices Act the S.A.F.E. Act Correct Answer: Secure and Fair Enforcement for Mortgage Licensing Act of 2008 Massachusetts General Laws (MGL c. 255F) Correct Answer: The state's licensing law for the regulation of mortgage loan originators is Chapter 255F of the Massachusetts General Laws The primary goal of the S.A.F.E. Act Correct Answer: to ensure that individual mortgage loan originators in every state m...

S.A.F.E. ACT Correct Answer: * Secure And Fair Enforcement Mortgage Licensing Act * 2008 *Establishes minimum standards for licensing and registering of mortgage loan originators. *Everyone has to be registered with NMLS&R N.M.L.S.&R. Correct Answer: National Mortgage Licensing System and Registry: * NMLS-A mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators * Provides uniform lic...

A mortgage broker also owns a title company Is this business arrangement allowed by RESPA? A. No, this is considered a business conflict of interest. B. No, this is an illegal business arrangement. C. Yes, as long as the title company is legitimate and the arrangement is disclosed. D. Yes, but the two affiliations can never be involved in a single real estate transaction. Correct Answer: C Yes, as long as the title company is legitimate and the arrangement is disclosed. 2 The minimum do...

Which of the following best describes a 2nd mortgage loan? (A) A conventional mortgage that is conforming (B) A conventional mortgage that is non-conforming (C) A conforming loan that is non-conventional (D) A non-conforming loan that is non-conventional Correct Answer: (B) A conventional mortgage that is non-conforming WHY? Non-conforming because it is a Second Mortgage and that falls outside the Frannie Mae - Freddie Mac guidelines It is important to understand that a conforming ...