MLO SAFE NMLS TEST BANK COMPLETE
QUESTIONS AND ANSWERS BUNDLED EXAMS
FULL SOLUTION VIEW AHEAD EXAM 2026
◉RESPA-Real Estate Settlement Procedures Act Answer: The Federal
Statute that deals with the settlement of residential mortgage loans.
◉RESPA's section 9 Prohibits Answer: Home sellers from requiring
home buyers to purchase title insurance from a particular company
providing title services.
◉The Dodd-Frank Act modifies ECOA to require a creditor to furnish a
copy of an appraisal developed in connection with a first
mortgage_____________________ and absolutely not later than
________ business days prior to closing. Answer: upon completion
and 3 business days
◉TIL (Truth In Lending Disclosure) & GFE (Good Faith Estimate)
Answer: Per the Dodd Frank Act, a single disclosure form combines
these 2 statements.
,◉Per the Dodd-Frank Acvt, to be a "qualified mortgage" total points and
fees may not exceed ________% of the total loan amount. Answer: 3%
(three percent)
◉Per a provision of the Dodd-Frank Act mortgage lenders are to
determine that a borrower has a reasonable ability to repay a loan. Does
this provision apply to all loans or just owner occupied loans? Answer:
All loans, whether owner occupied or not.
◉A loan subject to HOEPA allows prepayment penalties for the first
______ years of the loan. Answer: 2 (two) years
◉Per the Dodd-Frank Act an abusive act would include which of the
following:
1. One that materially interferes with the consumers ability to understand
the product or service.
2. One that take unreasonable advantage of a consumers' lack of
understanding.
3. One that takes unreasonable advantage of the consumer's reasonable
reliance on the MLO. Answer: All three would be considered abusive
acts.
◉Per the Dodd-Frank Act if an MLO receives compensation directly
from a consumer, up to how much additional compensation may be
received from a lender in the same transaction? Answer: $0.00, dual
,compensation is not allowed. Compensation must be borrower paid or
lender paid.
◉What kinds of reasons are necessary for a lender to take adverse action
with regard to a borrower? Answer: Specific reasons.
◉Adverse action means ______________________. Answer: A denial
or revocation of credit. Also, a change in the terms of an existing credit
arrangement or a refusal to grant credit in substantially the amount or
terms requested.
◉Per Regulation B, Lenders should retain certain records for
_____________ months. Answer: 25 Months
◉Because of the impact of the Dodd-Frank Act on a second mortgage,
an APR that exceeds the ________ by more than _____% is the trigger
that defines a high cost loan. Answer: APOR ( Average Prime Offer
Rate), 8.5%
◉Regulation C is known as ________________________. Answer:
HMDA, The Home Mortgage Disclosure Act.
◉What is the purpose of HMDA? Answer: The HMDA determines
whether financial institutions are serving the housing needs of their
communities. It also identifies patterns of discriminatory lending.
, ◉Under what circumstances can a lender with an Affiliated Business
Arrangement require a borrower to use a specific third party service
provider? Answer: If there are no kickback or referral fees and the
service provider is an attorney, credit reporting agency or appraiser the
lender can require that the borrower uses the provider
◉If a transfer of servicing occurs, the _______________ must provide a
servicing transfer statement not less than ________ days before the
transfer occurs. Answer: Servicer, 15 (fifteen) days.
◉An individual who fails the MLO written exam 3 times must wait
_________ months to retake the exam. Answer: 6 (Six) Months
◉Per RESPA, an annual escrow statement is required to
______________. Answer: determine shortages and surpluses in the
escrow account.
◉When must the Servicing Disclosure Statement be provided to the
borrower? Answer: Within 3 (three) Business Days of the Application.
◉Any party involved in a federally covered loan that submits fraudulent
information is subject to a fine of up to $___________ and up to
__________years in prison. Answer: $1,000,000 (one million dollars),
30 years in prison
QUESTIONS AND ANSWERS BUNDLED EXAMS
FULL SOLUTION VIEW AHEAD EXAM 2026
◉RESPA-Real Estate Settlement Procedures Act Answer: The Federal
Statute that deals with the settlement of residential mortgage loans.
◉RESPA's section 9 Prohibits Answer: Home sellers from requiring
home buyers to purchase title insurance from a particular company
providing title services.
◉The Dodd-Frank Act modifies ECOA to require a creditor to furnish a
copy of an appraisal developed in connection with a first
mortgage_____________________ and absolutely not later than
________ business days prior to closing. Answer: upon completion
and 3 business days
◉TIL (Truth In Lending Disclosure) & GFE (Good Faith Estimate)
Answer: Per the Dodd Frank Act, a single disclosure form combines
these 2 statements.
,◉Per the Dodd-Frank Acvt, to be a "qualified mortgage" total points and
fees may not exceed ________% of the total loan amount. Answer: 3%
(three percent)
◉Per a provision of the Dodd-Frank Act mortgage lenders are to
determine that a borrower has a reasonable ability to repay a loan. Does
this provision apply to all loans or just owner occupied loans? Answer:
All loans, whether owner occupied or not.
◉A loan subject to HOEPA allows prepayment penalties for the first
______ years of the loan. Answer: 2 (two) years
◉Per the Dodd-Frank Act an abusive act would include which of the
following:
1. One that materially interferes with the consumers ability to understand
the product or service.
2. One that take unreasonable advantage of a consumers' lack of
understanding.
3. One that takes unreasonable advantage of the consumer's reasonable
reliance on the MLO. Answer: All three would be considered abusive
acts.
◉Per the Dodd-Frank Act if an MLO receives compensation directly
from a consumer, up to how much additional compensation may be
received from a lender in the same transaction? Answer: $0.00, dual
,compensation is not allowed. Compensation must be borrower paid or
lender paid.
◉What kinds of reasons are necessary for a lender to take adverse action
with regard to a borrower? Answer: Specific reasons.
◉Adverse action means ______________________. Answer: A denial
or revocation of credit. Also, a change in the terms of an existing credit
arrangement or a refusal to grant credit in substantially the amount or
terms requested.
◉Per Regulation B, Lenders should retain certain records for
_____________ months. Answer: 25 Months
◉Because of the impact of the Dodd-Frank Act on a second mortgage,
an APR that exceeds the ________ by more than _____% is the trigger
that defines a high cost loan. Answer: APOR ( Average Prime Offer
Rate), 8.5%
◉Regulation C is known as ________________________. Answer:
HMDA, The Home Mortgage Disclosure Act.
◉What is the purpose of HMDA? Answer: The HMDA determines
whether financial institutions are serving the housing needs of their
communities. It also identifies patterns of discriminatory lending.
, ◉Under what circumstances can a lender with an Affiliated Business
Arrangement require a borrower to use a specific third party service
provider? Answer: If there are no kickback or referral fees and the
service provider is an attorney, credit reporting agency or appraiser the
lender can require that the borrower uses the provider
◉If a transfer of servicing occurs, the _______________ must provide a
servicing transfer statement not less than ________ days before the
transfer occurs. Answer: Servicer, 15 (fifteen) days.
◉An individual who fails the MLO written exam 3 times must wait
_________ months to retake the exam. Answer: 6 (Six) Months
◉Per RESPA, an annual escrow statement is required to
______________. Answer: determine shortages and surpluses in the
escrow account.
◉When must the Servicing Disclosure Statement be provided to the
borrower? Answer: Within 3 (three) Business Days of the Application.
◉Any party involved in a federally covered loan that submits fraudulent
information is subject to a fine of up to $___________ and up to
__________years in prison. Answer: $1,000,000 (one million dollars),
30 years in prison
