Safe MLO Test Study Guide
Prohibits Discrimination (including granting credit) - ANS - ECOA
When is the latest time frame by which the MLO can distribute the Loan Estimate - ANS - 3 business
days after receiving the a
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Safe MLO Test Study Guide
Prohibits Discrimination (including granting credit) - ANS - ECOA
When is the latest time frame by which the MLO can distribute the Loan Estimate - ANS - 3 business
days after receiving the application
What is the difference between the note rate and the APR? - ANS - The note rate is the interest rate
applied to the principal. The APR takes into account all fees and charges associated with a loan
What is the minimum number of items that an MLO must review and verify under the Ability-to-Repay
Rule to be confident that a borrower qualifies for a mortgage - ANS - 8
The FTC Disposal Rule: - ANS - Requires the establishment of policies and procedures governing
document disposal
If either the seller or buyer does not show up at the settlement, when should the Closing Disclosure be
mailed - ANS - Immediately
What does reverse redlining mean - ANS - Intentionally lending to certain demographics
When applying for a mortgage, a joint financial statement is NOT required in which of the following
circumstances - ANS - The potential borrower is over 50 years of age
Subpart E of TILA specifically includes rules related to - ANS - HOEPA defined loans
Which of the following is allowed under the Telemarketing Sales Rule - ANS - Calling a consumer at 8
AM in the consumer's time zone
Which of the following would be considered unethical - ANS - Local mortgage company charges the
borrower $15 for a credit report which is much lower than it competitors, however has an agreement
with the credit repository for $10 for each report due to the volume of reports pulled from the company
Which of the following would NOT be an acceptable trust deed rider? - ANS - A mortgage insurance
rider
According to RESPA, where must
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