SAFE MLO EXAM 225 EXAM SCRIPT
COMPREHENSIVE STUDY GUIDE
QUESTIONS WITH ACCURATE SOLUTIONS
●● The initial Loan Estimate must be delivered at least how many days
prior to consummation?
Answer: Seven business days
●● I'm an adjustable-rate mortgage, this term refers to the maximum
amount by which the interest rate may vary during its lifetime l
Answer: Lifetime cap
●● What is the maximum fee that may be charged for preparation of the
Closing Disclosure?
Answer: $0
●● On what page of the Closing Disclosure would the consumer find
information about the cash needed to close, in comparison to
information on the Loan Estimate?
Answer: Page three
●● The generally appraisal standards in the United States are known as:
Answer: USPAP
, ●● Which of the following best describes the legal consequences of
providing an inflated description of income on a loan application?
Answer: It is a violation of multiple federal lending laws and constitutes
fraud
●● A buyer pays $200,000 for a home and gets a fixed-rate loan from his
lender at 5.75%. He puts $40,000 down. What is the LTV on this loan,
and does the buyer have to pay PMI?
Answer: 80% and NO
●● Which law restricts the sharing of information given when a
consumer applies for a mortgage loan?
Answer: Gramm- Leach-Bliley Act
●● All of the following are part of the underwriter's review of collateral,
except
-Bank Statements
-Flood Zone verification
-Sales contract
-Appraisal
Answer: Not -Bank Statements
COMPREHENSIVE STUDY GUIDE
QUESTIONS WITH ACCURATE SOLUTIONS
●● The initial Loan Estimate must be delivered at least how many days
prior to consummation?
Answer: Seven business days
●● I'm an adjustable-rate mortgage, this term refers to the maximum
amount by which the interest rate may vary during its lifetime l
Answer: Lifetime cap
●● What is the maximum fee that may be charged for preparation of the
Closing Disclosure?
Answer: $0
●● On what page of the Closing Disclosure would the consumer find
information about the cash needed to close, in comparison to
information on the Loan Estimate?
Answer: Page three
●● The generally appraisal standards in the United States are known as:
Answer: USPAP
, ●● Which of the following best describes the legal consequences of
providing an inflated description of income on a loan application?
Answer: It is a violation of multiple federal lending laws and constitutes
fraud
●● A buyer pays $200,000 for a home and gets a fixed-rate loan from his
lender at 5.75%. He puts $40,000 down. What is the LTV on this loan,
and does the buyer have to pay PMI?
Answer: 80% and NO
●● Which law restricts the sharing of information given when a
consumer applies for a mortgage loan?
Answer: Gramm- Leach-Bliley Act
●● All of the following are part of the underwriter's review of collateral,
except
-Bank Statements
-Flood Zone verification
-Sales contract
-Appraisal
Answer: Not -Bank Statements
