1.
Jerry’s loan application cannot be approved under the terms for which he applied. The underwriter, however, can offer Jerry a different product for which he appears to qualify. Jerry would be notified of this option via:
1 out of 120
3.
Prior to closing on a HOEPA loan, the borrower must:
3 out of 120
4.
What is the primary benefit of a balloon mortgage?
4 out of 120
6.
To what does the term "person" refer?
6 out of 120
7.
When must a Loan Estimate be issued to an applicant in accordance with TRID?
7 out of 120
8.
Placing a subordinate lien behind a conventional first mortgage to eliminate the need for PMI when the applicant has less than 20% to put down on a home purchase is known as:
8 out of 120
9.
Which of the following is not an example of predatory lending?
9 out of 120
10.
Mortgage backed securities and participation certificates are terms associated with:
10 out of 120
13.
Which is not an asset type?
13 out of 120
14.
An individual who takes a mortgage application intending the loan for placement with a particular lender is referred to as a:
14 out of 120
15.
If Edna's loan balance is the same after the payment reprieve that she was given by her servicer ends, Edna was given a ...
15 out of 120
16.
If a buyer wishes to buy a home for $260,000, put 15% down, and avoid PMI, for what amount would the secondary loan be?
16 out of 120
17.
What should a mortgage originator be certain to discuss with an applicant who is considering an ARM?
17 out of 120
18.
Which of the following statements and questions to an appraiser would not constitute an ethical breach?
18 out of 120
19.
Mary Mortgagemonster has always worked for a federally-insured depository institution and now wishes to become a licensed mortgage loan officer. She inquires to the NMLS as to what she needs to do. What does the NMLS tell her?
19 out of 120
20.
The “Four C’s” of underwriting consist of:
20 out of 120
21.
A mortgage company charges an applicant a $200 credit report fee for a credit report costing $150 and retains the difference. This is an ethical violation known as:
21 out of 120
22.
Which of the following is not a tool with which to calculate an applicant's income?
22 out of 120
24.
In what scenario would a sales comparison approach to appraising be appropriate?
24 out of 120
25.
The Safeguards Rule is a component of what federal regulation?
25 out of 120
26.
If a 5/1 ARM's start rate is 3.375% with a cap structure of 2/6, what would the customer's interest rate become if, at the first change point, the index was 2.875% and the margin was 3%?
26 out of 120
27.
Which of the following would constitute a red flag on an appraisal?
27 out of 120
28.
A loan to finance the creation of a property that is ultimately paid off in cash after the home is built is referred to as a:
28 out of 120
29.
By when must a revised Loan Estimate be reissued in the presence of a valid change of circumstance?
29 out of 120
30.
Barbara is closing on a VA loan for $350,000. Her settlement costs amount to $5,750 and she has full entitlement. Aside from down payment and prepaids, how much will Barbara owe at settlement?
30 out of 120
31.
How long will the issuance of a revised Loan Estimate delay the closing?
31 out of 120
32.
How many total hours of ethics are required to satisfy annual continuing education requirements?
32 out of 120
33.
Which of the following regulations requires all financial companies and some creditors to implement an identity theft prevention program?
33 out of 120
34.
When is property flipping illegal?
34 out of 120
35.
According to the Fair Credit Reporting Act, which of the following is not an obligation of furnishers?
35 out of 120
36.
What document conveys property ownership?
36 out of 120
37.
Which of the following is not a component of a residential mortgage loan?
37 out of 120
38.
The Guidance on Non-Traditional Mortgage Product Risks warned against all but which of the following?
38 out of 120
39.
Without the client requesting it, a Realtor only shows properties to his client of Asian ethnicity that are located in neighborhoods primarily populated by Asian individuals. What regulation, if any, did the Realtor violate?
39 out of 120
40.
The minimum standards for license renewal consist of:
40 out of 120
41.
How would the reissuance of a Closing Disclosure affect the loan closing?
41 out of 120
42.
A credit bureau failing to maintain a consumer's privacy is a violation of the:
42 out of 120
43.
To what does the term "state" refer?
43 out of 120
44.
Although the lender for which Jenna originates mortgages is fully operational Monday through Friday, only its processing center is open on Saturday. On Friday, Jenna takes a mortgage loan application, the disclosures of which adhere to general business day disclosure requirements. By what day must Jenna issue those disclosures?
44 out of 120
45.
Overtime income may be considered for an hourly employee:
45 out of 120
46.
A bricklayer earns an annual salary of $56,500 working a 37.5-hour work week. What is her hourly rate of pay?
46 out of 120
47.
Which of the following is not one of the three acceptable means of disposing of an individual’s non-public, personal information in accordance with the FTC’s Disposal Rule?
47 out of 120
48.
If a loan originator fails to renew her license by midnight on December 31s, the originator:
48 out of 120
49.
When a state regulator positively responds to the MLO application of an unsponsored mortgage professional, the response will be ...
49 out of 120
50.
Once a Closing Disclosure is issued:
50 out of 120
51.
Once the Closing Disclosure is issued, when is the earliest that the loan may close?
51 out of 120
52.
Hank Homesintrouble could no longer afford his mortgage payment but his home was worth less than his outstanding balance. He did not qualify for a refinance or loan modification and consequently pursued a short sale. By approving the short sale, to what did Hank's lender agree?
52 out of 120
53.
A consumer reporting agency (CRA) failing to maintain a consumer's privacy is a violation of:
53 out of 120
54.
Which of the following is an example of a note receivable?
54 out of 120
55.
Which of the following is not a valid reason for changing fees once a Loan Estimate has been issued?
55 out of 120
56.
A mortgage originator must consider loan suitability when developing an application. What is something that she will consider in doing so?
56 out of 120
57.
Advertising an appealing mortgage product only to tell the caller that you've run out of that product but can offer something else is an example of ...
57 out of 120
58.
After failing the NMLS licensing exam for a third time, how much time must the MLO licensing candidate wait before being able to retake the exam?
58 out of 120
59.
An accountant earns an annual salary of $78,500. His mortgage payment includes a $778 bi-weekly P&I, annual real estate taxes of $1,100, and annual homeowner’s insurance premium amounting to $610. What is his housing ratio?
59 out of 120
60.
MLO Eddie encourages his 68-year-old applicant to pursue an FHA loan because MLO Eddie lacks access to the reverse mortgage program. As such, Eddie is …
60 out of 120
61.
The MLO's fiduciary duty to always act in the customer's best interests begins …
61 out of 120
62.
Marvin Moneyjuggler needs to settle on the purchase of his new home before he will be able to settle on the sale of his current primary residence. His current primary residence was listed through the MLS and has been under contract for the past three weeks. He is securing the funds to settle on his new home from the proceeds of the sale of his current home. What might the solution to Marvin’s dilemma be?
62 out of 120
63.
Georgie is approved for an 30-year HPML at 65% LTV. Assuming that he accepts this loan, for how long must Georgie's loan contain an escrow account?
63 out of 120
64.
Anthony applies for a loan that exceeds the thresholds defining it as a HOEPA loan. What must his lender do in addition to everything else?
64 out of 120
65.
Which of the following would constitute an underwriting red flag?
65 out of 120
66.
A home buyer is considering buying a home and applying for a $275,000 mortgage at a 78% LTV. Assuming that the appraised value is identical to the purchase price, at what value did the home appraise?
66 out of 120
67.
A loan may not close for:
67 out of 120
68.
Which of the following loan products is not assumable?
68 out of 120
69.
Commingling a borrower's funds is a violation of:
69 out of 120
70.
What terminology requires an advertiser to disclose the fine print?
70 out of 120
71.
All of the following types of income may be “grossed-up” by 25% except:
71 out of 120
72.
Which of the following questions would a mortgage loan originator be prohibited from asking an applicant?
72 out of 120
73.
A loan amount is $175,000 with a purchase price of $240,000. The property appraises at $229,000. What is the LTV?
73 out of 120
74.
A borrower will need to present the most recent two years’ federal tax returns when:
74 out of 120
75.
Commingling funds is an ethical violation of:
75 out of 120
76.
A borrower accepts a fixed rate, 30-year loan but, at closing, is presented with documents representing a 5/1 ARM. The loan originator explains that the ARM is better because of its lower start rate. This scenario exemplifies:
76 out of 120
77.
An APR is best described as:
77 out of 120
78.
A conventional mortgage balance is $155,000 and pays off on the fifth calendar day of the month. Assuming that the current month's payment was credited on the first and the loan carries a daily per diem of $19.55, what is the final payoff?
78 out of 120
79.
A truck driver earns $0.53 per mile and drives an average of 4,800 miles per month. What is his monthly income?
79 out of 120
80.
Terrible Title of Tullahoma, Tennessee conducts the refinance settlement through which borrowers are refinancing their single-family rental property. The settlement agent provides only one copy of the right to rescind to the borrower and no copy to the co-borrower. As a result:
80 out of 120
81.
What verbiage must appear on the special HOEPA disclosure issued to the customer no later than three business days prior to closing?
81 out of 120
82.
Some states utilize the Mortgage as the security instrument while others utilize:
82 out of 120
83.
A customer complains that his Realtor rushed him through the home inspection and sidestepped many of his questions. You immediately suspect:
83 out of 120
84.
Non-judicial foreclosure is the process through which a lender takes ownership of a property after default …
84 out of 120
85.
Which of the following is not included in the definition of a Mortgage Loan Originator?
85 out of 120
86.
If a property is worth $415,000 and two mortgages consume 45% of the value, what is the balance of the first mortgage if the second mortgage's LTV is 6%?
86 out of 120
87.
With minor exception, the disclosure of alimony, child support, and separate maintenance income is:
87 out of 120
88.
A Section 32 mortgage may contain a balloon component if:
88 out of 120
90.
The percentage 77% would best represent ...
90 out of 120
91.
A rehabilitation loan through which a homeowner rehabilitates and renovates a property in which they live is known as:
91 out of 120
93.
Which is the largest Secondary Market Agency?
93 out of 120
94.
If an attorney wishes to accept compensation by a mortgage brokerage for loans originated, the attorney:
94 out of 120
95.
The form on which a financial institution reports its HMDA data is known as a:
95 out of 120
97.
Which of the following documents establishes the debt?
97 out of 120
98.
Which CAP can lead to negam?
98 out of 120
99.
Which document actually contains the borrower’s promise to repay the loan?
99 out of 120
100.
Which of the following options would present the best possible solution for a borrower with minimal assets, whose home is worth less than his outstanding balance, and who's concerned about making his payments?
100 out of 120
101.
If an underwriter offers an applicant a counter offer, how long does the consumer have to accept the counter offer?
101 out of 120
102.
Making a loan based on a property's equity value instead of the applicant’s repayment ability constitutes:
102 out of 120
103.
Once the Closing Disclosure is issued, a revised Closing Disclosure must be issued:
103 out of 120
104.
The Latin term, "caveat emptor" encourages …
104 out of 120
105.
Mixing company administrative funds and borrower funds constitutes:
105 out of 120
106.
Which of the following information is publicly available through the NMLS?
106 out of 120
107.
Betty Borrower is exploring mortgage options with her MLO Larry Loanwriter. In considering a 5/1 ARM, Larry discloses the payment amount to Betty that corresponds to the loan’s worst-case scenario. Although Betty readily admits that she would not be able to afford that payment, she still appears to qualify for the 5/1 ARM. After Betty ultimately elects to pursue the 5/1 program, what should Larry do?
107 out of 120
108.
If a lender accepts a short sale, it may ultimately …..
108 out of 120
109.
Which of the following is an example of nontraditional credit?
109 out of 120
110.
Which of the following is considered to be a valid change of circumstance?
110 out of 120
111.
A mortgage originator must consider loan suitability when developing an application. What is something that she will consider in doing so?
111 out of 120
112.
A carpenter earns a weekly salary of $1,700 along with a monthly untaxed social security stipend of $1,025. What is his monthly income?
112 out of 120
113.
Which of the following is a cost disclosure?
113 out of 120
115.
Which of the following statements to an appraiser would not constitute an ethical breach?
115 out of 120
116.
All, but which, of the following are HOEPA restrictions?
116 out of 120
118.
NMLS-approved courses are accepted:
118 out of 120
119.
Funding is synonymous with ...
119 out of 120
120.
Which of the following derogatory credit events will not be held against an MLO license applicant?
120 out of 120
