MLO SAFE NMLS SAFE TEST PRACTICE QUESTIONS WITH CORRECT ANSWERS VERIFIED A+

MLO SAFE NMLS SAFE TEST
PRACTICE QUESTIONS WITH
CORRECT ANSWERS VERIFIED A+
TakingSadvantageSofSill-
informedSconsumersSthroughSexcessivelyShighSfees,SmisrepresentedSloanSterms,SfrequentSrefinanc
ingSthatSdoesSnotSbenefitStheSborrowerSandSotherSprohibitedSactsSisScalledS___________________
_______.S-SCORRECTSANSWERS-PredatorySLending.



RESPA-RealSEstateSSettlementSProceduresSActS-SCORRECTSANSWERS-
TheSFederalSStatuteSthatSdealsSwithStheSsettlementSofSresidentialSmortgageSloans.



RESPA'sSsectionS9SProhibitsS-SCORRECTSANSWERS-
HomeSsellersSfromSrequiringShomeSbuyersStoSpurchaseStitleSinsuranceSfromSaSparticularScompanyS
providingStitleSservices.



TheSDodd-
FrankSActSmodifiesSECOAStoSrequireSaScreditorStoSfurnishSaScopySofSanSappraisalSdevelopedSinSconn
ectionSwithSaSfirstSmortgage_____________________SandSabsolutelySnotSlaterSthanS________Sbu
sinessSdaysSpriorStoSclosing.S-SCORRECTSANSWERS-uponScompletionSandS3SbusinessSdays



TILS(TruthSInSLendingSDisclosure)S&SGFES(GoodSFaithSEstimate)S-SCORRECTSANSWERS-
PerStheSDoddSFrankSAct,SaSsingleSdisclosureSformScombinesStheseS2Sstatements.



PerStheSDodd-
FrankSAcvt,StoSbeSaS"qualifiedSmortgage"StotalSpointsSandSfeesSmaySnotSexceedS________%SofStheSt
otalSloanSamount.S-SCORRECTSANSWERS-3%S(threeSpercent)



PerSaSprovisionSofStheSDodd-
FrankSActSmortgageSlendersSareStoSdetermineSthatSaSborrowerShasSaSreasonableSabilityStoSrepaySaSl

,oan.SDoesSthisSprovisionSapplyStoSallSloansSorSjustSownerSoccupiedSloans?S-SCORRECTSANSWERS-
AllSloans,SwhetherSownerSoccupiedSorSnot.



ASloanSsubjectStoSHOEPASallowsSprepaymentSpenaltiesSforStheSfirstS______SyearsSofStheSloan.S-
SCORRECTSANSWERS-2S(two)Syears




PerStheSDodd-FrankSActSanSabusiveSactSwouldSincludeSwhichSofStheSfollowing:

1.SOneSthatSmateriallySinterferesSwithStheSconsumersSabilityStoSunderstandStheSproductSorSservice.
S



2.SOneSthatStakeSunreasonableSadvantageSofSaSconsumers'SlackSofSunderstanding.S

3.SOneSthatStakesSunreasonableSadvantageSofStheSconsumer'sSreasonableSrelianceSonStheSMLO.S-
SCORRECTSANSWERS-AllSthreeSwouldSbeSconsideredSabusiveSacts.




PerStheSDodd-
FrankSActSifSanSMLOSreceivesScompensationSdirectlySfromSaSconsumer,SupStoShowSmuchSadditionalS
compensationSmaySbeSreceivedSfromSaSlenderSinStheSsameStransaction?S-SCORRECTSANSWERS-
$0.00,SdualScompensationSisSnotSallowed.SCompensationSmustSbeSborrowerSpaidSorSlenderSpaid.



WhatSkindsSofSreasonsSareSnecessarySforSaSlenderStoStakeSadverseSactionSwithSregardStoSaSborrower
?S-SCORRECTSANSWERS-SpecificSreasons.



AdverseSactionSmeansS______________________.S-SCORRECTSANSWERS-
ASdenialSorSrevocationSofScredit.SAlso,SaSchangeSinStheStermsSofSanSexistingScreditSarrangementSorSa
SrefusalStoSgrantScreditSinSsubstantiallyStheSamountSorStermsSrequested.




PerSRegulationSB,SLendersSshouldSretainScertainSrecordsSforS_____________Smonths.S-
SCORRECTSANSWERS-25SMonths

,BecauseSofStheSimpactSofStheSDodd-
FrankSActSonSaSsecondSmortgage,SanSAPRSthatSexceedsStheS________SbySmoreSthanS_____%SisStheSt
riggerSthatSdefinesSaShighScostSloan.S-SCORRECTSANSWERS-APORS(SAverageSPrimeSOfferSRate),S8.5%



RegulationSCSisSknownSasS________________________.S-SCORRECTSANSWERS-
HMDA,STheSHomeSMortgageSDisclosureSAct.



WhatSisStheSpurposeSofSHMDA?S-SCORRECTSANSWERS-
TheSHMDASdeterminesSwhetherSfinancialSinstitutionsSareSservingStheShousingSneedsSofStheirScom
munities.SItSalsoSidentifiesSpatternsSofSdiscriminatorySlending.



UnderSwhatScircumstancesScanSaSlenderSwithSanSAffiliatedSBusinessSArrangementSrequireSaSborro
werStoSuseSaSspecificSthirdSpartySserviceSprovider?S-SCORRECTSANSWERS-
IfSthereSareSnoSkickbackSorSreferralSfeesSandStheSserviceSproviderSisSanSattorney,ScreditSreportingSag
encySorSappraiserStheSlenderScanSrequireSthatStheSborrowerSusesStheSprovider



IfSaStransferSofSservicingSoccurs,StheS_______________SmustSprovideSaSservicingStransferSstatemen
tSnotSlessSthanS________SdaysSbeforeStheStransferSoccurs.S-SCORRECTSANSWERS-
Servicer,S15S(fifteen)Sdays.



AnSindividualSwhoSfailsStheSMLOSwrittenSexamS3StimesSmustSwaitS_________SmonthsStoSretakeStheS
exam.S-SCORRECTSANSWERS-6S(Six)SMonths



PerSRESPA,SanSannualSescrowSstatementSisSrequiredStoS______________.S-SCORRECTSANSWERS-
determineSshortagesSandSsurplusesSinStheSescrowSaccount.



WhenSmustStheSServicingSDisclosureSStatementSbeSprovidedStoStheSborrower?S-
SCORRECTSANSWERS-WithinS3S(three)SBusinessSDaysSofStheSApplication.

, AnySpartySinvolvedSinSaSfederallyScoveredSloanSthatSsubmitsSfraudulentSinformationSisSsubjectStoSaS
fineSofSupStoS$___________SandSupStoS__________yearsSinSprison.S-SCORRECTSANSWERS-
$1,000,000S(oneSmillionSdollars),S30SyearsSinSprison



PerSRESPA,SanSescrowScushionSisSlimitedStoSaSmaximumSofS_________SofStheSannualSpaymentsSand
SsurplusesSoverS$_____mustSbeSrefundedSwithinS________Sdays.S-SCORRECTSANSWERS-


1/6thS(2Smonths),S$50S(fiftySdollars),S30S(thirty)Sdays.



ASsellerStakesSbackSaS$100,000SPMMS@S5.5%Sinterest.SThisSstraightSnoteSwillSballoonSafterS10Syears
SofSpayments.SHowSmuchSisStheSballoonSpayment?S-SCORRECTSANSWERS-


$100,000S+SinterestSforStheSlastSmonth.SASstraightSnoteS(termSmortgage)SisSaSnon-
amortizingSinterestSonlySmortgage.STheSballoonSwouldSincludeStheSentireSprincipalSplusStheSlastSm
onth'sSinterest,SasSinterestSisSpaidSinSarrears.



FNMASconformingSdebtSratiosSequalS______/________.S-SCORRECTSANSWERS-
28%,SmaximumShousingSexpense/36%SmaximumStotalSobligations



HOEPASstandsSforS___________________________.S-SCORRECTSANSWERS-
HomeSOwnershipSandSEquitySProtectionSAct.



RESPASappliesStoSwhatStypeSofSproperties?S-SCORRECTSANSWERS-1-4SUnitSResidentialSProperties



OnSaSconventionalSmortgageSloan,SwhoSmakesStheSfinalSdecisionSregardingSapproval,SdenialSorScou
nterSoffer?S-SCORRECTSANSWERS-TheSUnderwriter



TheSCivilSRightsSActSofS1866,SprohibitedSpublicSandSprivateSracialSdiscriminationSinSanySpropertyStra
nsactionSandSwasSexpandedSinS1968SinSwhichSact?S-SCORRECTSANSWERS-
TheSCivilSRightsSActSofS1968,SalsoSknownSasSTitleSVIIISofStheSCivilSRightsSActS,SAlsoSknownSasSTitleSVIII
,SAlsoSKnownSasSTheSFairSHousingSAct