1.
While taking a mortgage application, MLO Edna asks her applicant if he is married, separated, or divorced. What regulation, if any, did Edna violate by asking this question?
1 out of 120
2.
Alice is an eligible VA loan borrower who wants to purchase a home selling for $875,750 and finance it through VA financing. Assuming that qualification is not of issue, what would be her minimum down payment?
2 out of 120
3.
The FTC Red Flags Rule requires all of the following but which?
3 out of 120
4.
One of TRID's primary purposes was to ...
4 out of 120
5.
In 2021 Alex left the mortgage industry to pursue a career in Marine Biology. In 2023, Alex decided that he was happier originating mortgages and decided to resume his career as an MLO. What must Alex do now in order to do so?
5 out of 120
6.
One of the primary customer protections of the MARS Rule is ...
6 out of 120
7.
Hannah directly disputes what she considers to be an erroneous tradeline report with Experian. How long will the furnisher have to respond to Experian's inquiry before Experian would have the right to remove the disputed reporting from Hannah's credit profile?
7 out of 120
8.
Eddie is buying a single family home for $325,000 which he intends to rent. If he is putting $32,500 down, how much may the seller offer in seller's concessions?
8 out of 120
9.
All, but which, is an appraisal approach?
9 out of 120
10.
Once the construction has been completed when the borrower financed it through a construction loan ...
10 out of 120
11.
Sarah just closed on a high-cost mortgage loan. Up to how many months' worth of payments may she satisfy through the loan's proceeds at settlement?
11 out of 120
12.
Gabe is a W-2 wage earner who MLO Marv lists on the 1003 as self-employed. Why would Marv do this?
12 out of 120
13.
Which of the following can be considered a traditional mortgage?
13 out of 120
14.
Alice earns $2,750 per month and pays $100 on a credit card bill with a minimum payment owed of $17. She also has a car loan for $118 and a student loan payment for $450 with five months remaining. Her PITI payment is $884. What is her back-end expense ratio?
14 out of 120
15.
How should an MLO request customer information?
15 out of 120
16.
A mortgage originator's fiduciary responsibility begins ...
16 out of 120
17.
A property's TLTV is 75%. The home is worth $475,000 and there is a first mortgage with an LTV of 63%. What is the second-lien home equity line of credit's total credit limit?
17 out of 120
18.
MLO Mike is going out of town. Before leaving, he instructs his 1099 processor to review pricing with anyone who calls in asking about a loan during his absence. How should Mike's processor respond?
18 out of 120
19.
Nathanial's fixed rate mortgage contains an interest rate of 1.125%. He has 17 years left and wants to lower his payment. He has $40,000 to pay down his principal. What would be the MLO's most appropriate suggestion?
19 out of 120
20.
The earnest funds deposit is best described as:
20 out of 120
21.
If a borrower owes $655,441 on his mortgage carrying a 4.125% interest rate, what is his daily interest per diem?
21 out of 120
22.
All but which of the following are included in the eight underwriting considerations of ability to repay?
22 out of 120
23.
Elizabeth is wanting to pursue a cash-out refinance of her three-family rental property. What form will her MLO use to take her application?
23 out of 120
24.
Justin is short on the reserves needed to qualify for the mortgage loan that he wants. His father agrees to front him $50,000 as long has he repays him $51,000 within three weeks from the date of his loan's settlement. What ethical failure did Justin commit by agreeing to do this?
24 out of 120
25.
MLO Irma is also a licensed real estate agent. Under what circumstance, might she be accused of unethical product steering?
25 out of 120
26.
In order to access another individual's credit profile ...
26 out of 120
27.
Bobby's pursuing a loan amount of $175,000 when purchasing his new home for $255,000. He's paying $3,500 in discount points. How many points is Bobby buying?
27 out of 120
28.
If Olivia was convicted of felony third-degree assault in 2017, when would she be eligible for an MLO license?
28 out of 120
29.
The SAFE Act was established to …
29 out of 120
30.
A borrower has a 7/1 ARM with a start rate of 2.5%. The CAP structure is 3/8. Assuming worst-case scenario, what would the rate be in year 12?
30 out of 120
32.
An Associate Relationship involves ...
32 out of 120
33.
Under the USA PATRIOT ACT, who or what is ultimately responsible for the consumer's appropriate verification?
33 out of 120
34.
Barbara is 65 years old, owns her home free and clear, has decent credit, minimal income, can easily afford the mandatory costs associated with owning her home, and needs to access her home's equity without selling it. What would be the best form for her to complete in order to resolve her dilemma?
34 out of 120
35.
Eddie needs $65,575 to close on his loan. His only assets consist of a CD for $10,000 and a bank statement with an ending balance of $60,000. In reviewing his bank statement, MLO Carl observes a $57,500 deposit from three weeks prior that does not correspond to Eddie's income. When Carl inquires about the deposit, Eddie explains that the $57,500 represents cash that he had saved up over the years and kept in a bedroom safe. What should Carl now advise Eddie or do?
35 out of 120
36.
All but which of the following are contributors to holding MLOs accountable for their actions?
36 out of 120
37.
Shady Sheldon believes that selling overpriced subprime loans to the undereducated residents of particular city neighborhoods would be like shooting fish in a barrel. By targeting those individuals, Shady Sheldon is committing the unethical act of ...
37 out of 120
38.
Splitting a commission between two professionals is …
38 out of 120
39.
The Operating Income Statement (OIS) is most closely associated with ...
39 out of 120
40.
A lender recommends a title company to a borrower who agrees to use that company's services. On the Loan Estimate, the lender discloses the title fee to be $2,750. Three weeks into the process, a hurricane strikes the area where the property is located consequently delaying the closing by three weeks. Ultimately, the title company bills for $3,350 causing the lender to disclose $3,350 for title services on the Closing Disclosure. How much does the borrower pay for title services?
40 out of 120
41.
All but which of the following are not compensating factors?
41 out of 120
42.
To minimize overhead costs, a bank elected to only operate partial-service financial centers in a particular city because the majority of that city's residents were unable to afford most of the bank's products and services. This practice is considered to be ...
42 out of 120
43.
If a borrower closed on a 7/1 ARM with a start rate of 3.75%, a margin of 2.875%, and a CAP structure of 3/1/6, what would the loan's lowest possible rate be after the conclusion of the loan's initial period of interest rate stability?
43 out of 120
44.
What is the daily per diem on an outstanding loan balance of $473,722 at 4.375%?
44 out of 120
45.
Under the Homeowners Protection Act, the "termination" date refers to the date when the non-high-risk loan borrower's ...
45 out of 120
46.
All but which are prohibitions established through the MARS Rule?
46 out of 120
47.
A borrower gets a loan with a total debt ratio of 40% and a monthly income of $10,000. How much would be available to cover his PITI payment if he has other monthly debt of $1,000?
47 out of 120
48.
If a borrower earns $1,100.00 semi-monthly, what is her bi-weekly equivalent?
48 out of 120
49.
Johnny's family income is 50% below the area median income of Boston, MA., the city in which he and his family live. He desperately wants to become a homeowner. Under which program would he be most likely to find financing?
49 out of 120
50.
Once a loan with escrow closes, RESPA requires that the first escrow analysis to be conducted within ...
50 out of 120
51.
Heather wants to buy a home for $400,000, take out a conventional mortgage, and avoid paying PMI. If she has $56,000 as a down payment, what option would achieve this for her?
51 out of 120
52.
Of the following, who does not need to be licensed as an MLO?
52 out of 120
53.
An ABAD must be issued when ...
53 out of 120
54.
Sylvia may not access her FHA 255's proceeds through a/an...
54 out of 120
55.
Which of the following is not a compensating factor?
55 out of 120
57.
Edgar is an honorably-discharged veteran of the U.S. Air Force. When applying for his VA loan, along with his COE, his MLO should also request a copy of Edgar's ...
57 out of 120
58.
Which of the following loans could require PMI?
58 out of 120
59.
A borrower has a 3/1 ARM with a start rate of 1.5%. The CAP structure is 3/1/6. Assuming worst-case scenario, in what year could the loan reach its highest rate?
59 out of 120
60.
Processor Polly takes a call from MLO Matt's applicant who insists on Polly explaining a subprime mortgage option with him since Matt is unavailable. What should Polly do?
60 out of 120
61.
The HOEPA Disclosure warns that ...
61 out of 120
62.
Under FCRA, what must a consumer do to add an extended fraud alert to his or her credit profile?
62 out of 120
64.
Lenders and investors have a large appetite for ARMs in a ...
64 out of 120
65.
Sylvia may not access her FHA 255's proceeds through a/an...
65 out of 120
66.
The CFPB was a direct result of the ...
66 out of 120
67.
Alice originates a mortgage loan that requires her to issue a disclosure containing the verbiage, "You are not required to complete this agreement merely because you have received these disclosures or have signed a loan application. If you obtain this loan, the lender will have a mortgage on your home. You could lose your home, and any money you have put into it, if you do not meet your obligations under the loan.” Alice is compelled to issue this disclosure under Regulation ...
67 out of 120
68.
Eddie knows of a primary-residential, five-family dwelling that he would like to purchase. With a credit score of above 580 and 4% to put down, which of the following responses would Bud the MLO offer in response to Eddie's inquiry?
68 out of 120
69.
Anna buys her single-family, primary residence for $345,000. The home appraises for $322,000. Anna's down payment is $16,100. At what balance will her MIP automatically fall off?
69 out of 120
70.
All of the following can cloud title except?
70 out of 120
71.
The SAFE Act was established by ...
71 out of 120
72.
The Statement on Subprime Lending warns against ...
72 out of 120
73.
How long ago would Ernie's IRS tax lien had to have been filed against him in order to apply for and receive a state MLO license?
73 out of 120
74.
In applying for a mortgage, Heather provides her MLO with income documents evidencing a base salary of $65,000 and consistent annual overtime amounting to $18,500. In addition to pay stubs, what must Heather's MLO request from her?
74 out of 120
76.
Promising one thing and delivering something different is referred to as ...
76 out of 120
77.
Lisa wants to pursue a job as a 1099 mortgage loan processor. Before doing anything else, what must Lisa do?
77 out of 120
78.
If an application for a primary residential refinance is taken on Monday the 7th and the loan closes on Monday the 28th, when does the loan consummate?
78 out of 120
79.
After squeezing forty family members into her two bedroom house for Thanksgiving, Allison realized that she needs a bigger house! In purchasing one, about what might her new loan's underwriter be concerned?
79 out of 120
80.
All but which of the following constitutes risk layering?
80 out of 120
82.
Tony took and passed the NMLS exam in 2012. Shortly thereafter, he became an MLO for a bank for which he has since originated loans consistently. Now, over ten years later, Tony desires to originate mortgage loans for a brokerage. What must Tony do in order to do so?
82 out of 120
84.
Seller's concessions will be most frequently seen in a ...
84 out of 120
86.
Purchasing an owner's title insurance policy will help a homeowner by ...
86 out of 120
87.
Rotten Realtor Ralph distributes fliers to all neighborhood residents warning that, with the imminent influx of undesirables into the neighborhood, property values are certain to decline. He further urges all of the neighborhood's homeowners to quickly sell their properties, for whatever amount they can easily get, before their homes' values fall. What ethical failure is Rotten Ralph committing?
87 out of 120
89.
Under the Truth-in-Lending Act, how long does a mortgage servicer have to issue an accurate payoff statement to the requester requesting one?
89 out of 120
90.
Anthony has applied for a mortgage loan originator license. In reviewing his credit profile, the state regulatory authority observed that Anthony has a judgement against him for $125,575 from Harbour Hospital. How likely would Anthony be to be issued an MLO license?
90 out of 120
91.
All but which of the following is a traditional loan?
91 out of 120
92.
ECOA's primary philosophy is ...
92 out of 120
93.
A credit score of 579 is most closely associated with ...
93 out of 120
94.
Arnie gave Ellen a $50 gift card for referring a customer to him who closed on a house. This is an example of …
94 out of 120
95.
Amanda has 10% to put down on her conventional mortgage but wants to avoid a monthly PMI payment. Which of the following would not be an option for her?
95 out of 120
96.
Abigail's qualifying credentials are not as solid as would be ideal for a second mortgage. As her MLO, which of the following options might you suggest?
96 out of 120
97.
Barney is being required to secure flood insurance. In which of the following flood zones is his property located?
97 out of 120
98.
The most costly type of mortgage-related fraud is ...
98 out of 120
99.
The federal government's position regarding the public's access to financial products and services is ...
99 out of 120
101.
Heather earns $2,750 bi-weekly. Her monthly P&I payment is $872.55, her annual taxes are $3,500, her annual homeowner's insurance is $450, her monthly gas bill is $110.00, and her monthly PMI is $44.10. What is Heather's housing expense ratio?
101 out of 120
102.
1968 is the year of .....
102 out of 120
103.
Which of the following exemplifies Respondeat Superior?
103 out of 120
104.
A Section 32 loan triggers the requirement for a special disclosure to be issued …
104 out of 120
105.
All but which of the following would disqualify a loan from being a QM?
105 out of 120
106.
A temporary buydown is an example of ...
106 out of 120
107.
The most common type of mortgage-related fraud is ...
107 out of 120
108.
Fannie Mae considers all but which of the following to be elements of mortgage fraud.
108 out of 120
109.
Which of the following is an example of a federally related mortgage loan?
109 out of 120
110.
Esther is refinancing her geodesic dome. Which appraisal approach will the appraiser take when appraising Esther's property?
110 out of 120
111.
Barbara's Loan Estimate estimated the transfer tax for the property that she's buying to be $2,450. The Closing Disclosure reflected the tax to be $4,075. What amount will Barbara ultimately be responsible for paying?
111 out of 120
112.
The "Guidance" recommends all but which of the following practices?
112 out of 120
114.
We Close 'Em Title Company offers We Write 'Em Mortgage Lender a computer to use for ordering title insurance. Which, if either party, violated RESPA?
114 out of 120
115.
If Allison pays a monthly ground rent, how would you best describe her property?
115 out of 120
116.
TILA's mortgage servicing restrictions surround all of the following but which?
116 out of 120
117.
If a mortgage professional is in possession of a customer's personal information, what must he or she do?
117 out of 120
118.
Eddie asks you for the amount of income that he would have to show in order to qualify for the loan that he is considering. What should your reply be?
118 out of 120
119.
Why does a lender need to know if a borrower is married, separated, or unmarried?
119 out of 120
120.
Advising a customer as to the least amount of income that he or she would be required to earn in order to qualify for a particular mortgage program would be …
120 out of 120
