1.
If a conventional, non-conforming loan's borrower neglects to petition her mortgage servicer for her loan's PMI to be removed at 80% LTV, when would the PMI be automatically removed assuming that she always maintains her loan in a current status?
1 out of 120
2.
An action to quiet title refers to:
2 out of 120
3.
If a bank takes a mortgage application on May 26th, the Friday before Memorial day, by when must the Loan Estimate be issued?
3 out of 120
4.
If a mortgage loan originator is applying for a license while acting under Temporary Authority, assuming that her application is incomplete, how long after submitting the application will her Temporary Authority expire?
4 out of 120
5.
Eddie settled on a 203(b) in the amount of $345,000 when the purchase price and value of the property that he bought was $363,000. At what point can Eddie expect his monthly mortgage insurance to be automatically removed?
5 out of 120
6.
Penelope's mortgage company has decided not to originate community lending loans because of their low profit margin. In doing so, Penelope's company commits:
6 out of 120
7.
A recast point is most closely associated with …
7 out of 120
8.
Which of the following points and fees totals would allow a loan amount of $375,000 to meet QM status?
8 out of 120
9.
The most common type of mortgage-related fraud is ...
9 out of 120
10.
An employer's culpability for its employees' actions is founded under the legal doctrine of ...
10 out of 120
11.
Of the following, who must be licensed as an MLO?
11 out of 120
13.
A bank takes a purchase mortgage application on Friday and Monday is not a federal holiday. Which of the following disclosures does the lender have until the following Wednesday to issue?
13 out of 120
14.
All but which of the following are not required to secure an MLO license prior to originating mortgage loans?
14 out of 120
15.
Alan is self-employed and grossed $145,500 in 2022 and $157,200 in 2023. His 2022 adjusted net income was $72,700 and his 2023 adjusted net income was $83,500. With what monthly income do you credit him on the 1003?
15 out of 120
17.
For purposes of a PMI removal petition, a "good payment history" consists of ...
17 out of 120
18.
Lucy has decided to pursue a 7/1 ARM. On the day of her application, FIAR is 8.125%. Her loan's start rate is 5.0%. What would her start rate be considered?
18 out of 120
19.
If a PITI is $1,410.00 and the payment contains taxes and insurance, what is the annual hazard amount assuming that the annual taxes are $1,775.00 and the P&I is $1182.91?
19 out of 120
20.
On the day of applying for a primary residential rate/term conventional refinance, Eric locks in a rate of 5.875% fixed. His LTV is 47%. At the time of application, the APOR is 4.75% and the APR of the loan for which he is applying is 6.25%. Which of the following statements is true?
20 out of 120
21.
Which of the following is not a zero tolerance fee?
21 out of 120
22.
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?
22 out of 120
23.
If Avery is making outbound sales calls from her office in Oregon, what is the latest, her time, that she can call legitimately call someone in South Carolina?
23 out of 120
24.
In general, a revised Loan Estimate need not be issued if a Valid Change of Circumstance ...
24 out of 120
25.
The promise to repay is established through the:
25 out of 120
27.
When an applicant refuses to provide HMDA information over the telephone, the MLO should ...
27 out of 120
28.
Edgar completes a Tuesday morning phone refinance application by referring his applicant to a title company which has a 15% ownership interest in Edgar's mortgage company. By when must Edgar issue an ABAD to his applicant?
28 out of 120
30.
Sophia is pursuing a cash-out refinance of her three-family investment property. Which of the following disclosures does Sophia's lender refrain from issuing her at application?
30 out of 120
31.
Which of the following is Loan Officer Arnie prohibited from doing?
31 out of 120
32.
If Edna's gross monthly income is $7,650.00, her front-end DTI is 25%, and her back-end DTI is 41%, how much non-housing-related expenses does she have?
32 out of 120
33.
The subprime mortgage crisis of 2008 was directly responsible for the ...
33 out of 120
34.
If an applicant is e-mailed a revised Loan Estimate and does not acknowledge its receipt, when is the earliest that the closing may occur?
34 out of 120
35.
If Olivia was convicted of felony third-degree assault in 2017, when would she be eligible for an MLO license?
35 out of 120
36.
Irma has consistently earned an annual bonus equating to half her base salary for the past nine years. In addition to two years' W-2s and 1099s, what income-related documentation would her MLO need to request of Irma in order to submit the loan file?
36 out of 120
37.
All, but which, of the following disclosures would be issued at the application of a loan subject to TRID?
37 out of 120
38.
What is the daily per diem on an outstanding loan balance of $473,722 at 4.375%?
38 out of 120
39.
Remitting additional payments to principal on an ARM affects the ...
39 out of 120
40.
Who is not entitled to rescind a rescindable loan?
40 out of 120
41.
If a borrower settles on a primary residential, cash-out refinance on Thursday, December 31st, on what day does the loan fund?
41 out of 120
42.
To minimize cash-to-close, Edison's lender allows her to close on the second day of the month. This option is referred to as a/an:
42 out of 120
43.
Title X of the Dodd-Frank Act is responsible for …
43 out of 120
44.
MLO Irma is also a licensed real estate agent. Under what circumstance, might she be accused of unethical product steering?
44 out of 120
46.
If a borrower is putting 0% down on a USDA loan of $200,000, what is the maximum amount of allowable seller's concessions?
46 out of 120
47.
ATR was a component of the …
47 out of 120
48.
Buddy is buying a house for $195,000 and putting 10% down. How much may he accept in seller's concessions?
48 out of 120
49.
The prohibition against redlining originates with:
49 out of 120
50.
If a husband and wife jointly apply for a mortgage and they both share the asset accounts, the asset accounts must appear on:
50 out of 120
51.
What is the semi-monthly payment equivalency for a monthly PITI of $3,750?
51 out of 120
53.
Abigail has a subprime mortgage product to sell that's extremely profitable. Her primary selling tactic is to take advantage of undereducated peoples' naivety. To find her clientele, Abigail markets in socioeconomically-poor sections of local cities. By doing so, Abigail can be accused of:
53 out of 120
54.
Saturday is always all but what?
54 out of 120
55.
The most costly type of mortgage-related fraud is ...
55 out of 120
56.
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?
56 out of 120
58.
Which of the following would not justify an MLO's refusal to take an application?
58 out of 120
59.
Which of the following could be originated under conventional conforming product guidelines?
59 out of 120
60.
Barbara completed her 20-hour course, took and passed the NMLS exam, and then decided to travel the world instead of becoming an MLO. If Barbara's wanderlust ever fades, how long would she have to secure at least one state MLO license before being required to retake the NMLS exam?
60 out of 120
61.
Which of the following is not a primary purpose of appraising a property?
61 out of 120
62.
Which of the following will prevent Mary from being issued an MLO license?
62 out of 120
64.
Heather earns $2,750 bi-weekly. Her monthly P&I payment is $872.55, her annual taxes are $3,500, her annual homeowners insurance is $450, her monthly gas bill is $110.00, and her monthly PMI is $44.10. What is Heather's housing expense ratio?
64 out of 120
65.
Advising a potential borrower as to what the necessary income amount would be to qualify for a loan would be:
65 out of 120
67.
Albert is a Realtor who refers his buyer to a mortgage originator in another state. What may Albert accept in return from the MLO?
67 out of 120
68.
All, but which, are ARM components?
68 out of 120
69.
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?
69 out of 120
71.
Which of the following would be Ida's best choice since she is no longer able to afford her mortgage payments?
71 out of 120
72.
Which of the following would justify a right of rescission's waiver?
72 out of 120
74.
If a loan amount is $375,500, what is the maximum amount of points and fees that this loan can charge for it to still qualify as a QM?
74 out of 120
75.
Addison is a licensed MLO who, in 2022, decided not to renew his MLO license to instead focus on becoming a play write. In the event that things do not go as planned, in what year would Addison have to retake and pass the NMLS exam in order to return to the mortgage industry and reestablish his MLO license?
75 out of 120
76.
Elsie buys a home for $575,000, finances it with a loan for $480,000, and pays $6,285 in discount points. How many points did Elsie purchase?
76 out of 120
77.
When Allison asks her applicant to explain a unique large-dollar deposit appearing on her bank statement, her applicant shares that she was saving the money in cash and recently deposited it. How should Allison respond?
77 out of 120
78.
Alison wants to add Brittany to the title of her home. To do so, Alison will have to ...
78 out of 120
79.
Edgar closes on his SFR investment property refinance on Thursday. Assuming that Monday is not a federal holiday, when will the loan fund?
79 out of 120
80.
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?
80 out of 120
81.
Edith has a 203(b) loan with a balance of $175,210. Her monthly PITI payment is $795.22. She was unable to remit her May payment until after the grace period and, as such, incurred a late charge. How much was that late charge?
81 out of 120
83.
When reviewing his applicant's credit report, MLO Taylor's applicant mentions how she has a personal loan through which she pays $500 to her ex boyfriend every month. Taylor's calculations confirm that, by considering that payment, her applicant's DTI ratios are 85%. What should Taylor do?
83 out of 120
84.
If a property's purchase price is $257,000 and the corresponding loan amount is $165,000, what is the maximum amount of points and fees that this loan could charge in order to maintain a QM status?
84 out of 120
85.
Which of the following questions would constitute an ethical violation should an MLO ask it?
85 out of 120
86.
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?
86 out of 120
87.
Which of the following is not a RESPA prohibition?
87 out of 120
88.
A State Commissioner lacks the authority to .......
88 out of 120
89.
Who would an MLO be permitted to prohibit from applying for a mortgage loan?
89 out of 120
90.
Terrific Title is overseeing the settlement of a primary residential refinance. In issuing the right of rescission, how is Terrific Title permitted to issue only one copy of the RoR document to all of the transaction's parties?
90 out of 120
91.
In general, the maximum civil penalty that a State Commissioner can assess against a non-compliant MLO is:
91 out of 120
92.
All, but which, of the following constitute a valid change of circumstance (VCOC)?
92 out of 120
93.
In the absence of a valid change of circumstance, how much will the borrower pay for the recording tax if it was originally disclosed on the LE to be $1,110 but appears on the CD as $1,444?
93 out of 120
94.
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?
94 out of 120
95.
Payment shock can result from all, but which, of the following?
95 out of 120
96.
The final title policy is issued:
96 out of 120
97.
If a primary residential purchase money mortgage's APR is 8.875% and the APOR is 2.25% on the day of the loan's origination, which of the following statements applies?
97 out of 120
99.
Temporary Authority refers to ...
99 out of 120
100.
BSA/AML requires all financial companies to maintain a ...
100 out of 120
101.
Jennifer is applying for a mortgage. While she and her MLO are reviewing her credit report, Jennifer mentions that a loan that she recently took out through her best friend Ellie is not on her credit report. What should her MLO do?
101 out of 120
102.
Under "Temporary Authority," an MLO who is in the process of procuring a state MLO license may act in the capacity of an MLO in that state as long as any, but which, of the following conditions are met?
102 out of 120
103.
While reviewing the Loan Estimate that you sent him, your customer asks you to explain what the "TIP" is. What do you tell him?
103 out of 120
104.
Who is required to receive two copies of the right of rescission documents at the closing of a rescindable loan?
104 out of 120
105.
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?
105 out of 120
106.
The ECOA's one exemption is for HMDA. The other ECOA exemption is for ...
106 out of 120
107.
Brittany wants to reduce her fixed-rate mortgage's monthly payment amount. Art gave her $75,000 to pay against her loan's current balance. What would be the easiest way for her to do that?
107 out of 120
108.
The SAFE Act's general purpose was to:
108 out of 120
109.
The MAP Rule prohibits the unrestricted ...
109 out of 120
110.
A conventional mortgage containing PMI that reaches 80% LTV is eligible for PMI removal as long as an appraisal supports the 80% LTV, the borrower demonstrates a good payment history, and ...
110 out of 120
111.
Shady Sheldon believes that selling overpriced subprime loans to the undereducated residents of particular city neighborhoods would be as easy as shooting fish in a barrel. By targeting those individuals, Sheldon is committing the unethical act of ...
111 out of 120
113.
Which of the following constitutes predatory lending?
113 out of 120
114.
Leroy asks his loan originator for a copy of his credit report. What is Leroy's loan originator's most appropriate response?
114 out of 120
115.
All but which of the following does not fall under TRID's oversight?
115 out of 120
116.
Edgar is asked to sign a trust deed at his closing. As such, it is safe to assume that the property Edgar is purchasing is located in a ...
116 out of 120
117.
If Amanda is not required to complete independent, third-party homeownership counseling prior to settling, for which of the following loans is she applying?
117 out of 120
118.
Eminent domain "benefits" the public by ...
118 out of 120
119.
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?
119 out of 120
120.
The LIBOR index was replaced by the ....
120 out of 120
