MLO Test - Study Material
The federal Truth in Lending Act - ANS - regulates advertising with references to mortgage interest
rates.
Which would LEAST LIKELY be a changed circumstance that would trigger the need to pr
...
MLO Test - Study Material
The federal Truth in Lending Act - ANS - 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? - ANS - 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 approving a
mortgage loan application? - ANS - likelihood of continued income
ABC Bank receives a change of address request from a consumer. What requires the bank to
follow up with him to verify the validity of the request? - ANS - Red Flag Rules
In a purchase transaction closing, hypothecation occurs. This is described as - ANS - Using property as
collateral without surrendering use or possession of it.
Each of these loans would be excluded under the definition of a higher-priced loan EXCEPT - ANS - a
purchase loan.
If a mortgage loan originator or real estate agent suggests to a client that he move to a particular
area to reside in a community that he will "fit into," that MLO or real estate agent would be guilty
of - ANS - Steering.
A Truth in Lending Statement must be given to a consumer no later than ________ business
days prior to closing a home loan. - ANS - 7
A borrower has an additional three-business day waiting period before the loan closes if the true
APR on a fixed rate loan deviates from the initial TIL by more than - ANS - 1/8%.
The tradeoff table is a tool to assist consumers that appears on the - ANS - Good Faith Estimate.
A mortgage loan originator hands the borrower a GFE and a TIL in his office the day after the
application was completed. The MLO can charge the borrower for an appraisal - ANS - That day.
Of these, who is responsible for the accurate accounting of all monies due to and from the parties
in a real estate sale? - ANS - Settlement or escrow agent
What risk is PMI intended to cover? - ANS - Default on loan repayment
The mortgagor is known as the - ANS - borrower.
A lender learns that a real estate agent encouraged an appraiser to hit a specific value for a property. The
lender - ANS - Can use the appraisal and close the loan if the lender can document that the appraisal
does not materially misrepresent the value.
A lender has how many days to notify the borrower of an underwriting decision? - ANS - 30
MLOs are prohibited from - ANS - telling an appraiser a minimum value needed to approve the loan.
The initial TIL on an ARM loan indicates an APR of 6%. The APR changes 6.125% prior to close.
This - ANS - requires redisclosure but no additional waiting period.
A high-cost loan that results in negative amortization is illegal under what law? - ANS - HOEPA
To comply with the FACT Act, a mortgage loan originator should - ANS - place all loan applications
and documentation in a secure place when not working on them.
What is the most common appraisal approach used in appraising single-family housing? - ANS - sales
comparison approach
Which act provides a specific definition of a no
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