Federal Mortgage Law (MLO) 2023 Reloaded Exam with
complete solution
The Dodd-Frank Act includes provisions that are intended to help struggling
homeowners to obtain loan modifications by:
Requiring the CFPA to write servicing rules to facilitate loss mitigation efforts
A lender is permitted to deny an applicant credit based on which of the following
factors?
the applicant likes income stability
this rule apply to commercial Communications used to Market mortgage loan
products and services to Consumers
MAP Rule
HOEPA would not apply to
a bridge loan to finance Construction
is the Creditor permitted to call the borrower and provide the information
contained in the closing disclosure over the phone?
no, because the closing disclosure must be in writing
what is the purpose of Regulation B?
to protect discriminatory treatment of credit applicants
the following features are prohibited for a qualified mortgage
40 year term, negative amortization, interest only payments
which of the following federal agencies have supervisory responsibilities for the
truth in lending compliance?
CFPB
the real estate settlement procedures act include all of the following provisions
special information booklet, it prohibits receipt of referral fees, it limits affiliation and
settle Services may create
Murphy is a broker who has a ownership interest in a local title insurance
company. When his clients apply for loan and request referral to a title company,
Murphy must
immediately provide an Affiliated business Arrangement disclosure if he offers them to
the title company in which he has an ownership interest
Symantec auditory waiting. Between issuance of disclosure an assumption may
be waived:
if a consumer requests a waiver to to the bona fide Financial emergency
HMDA implementing regulations is:
regulation C
5 siblings have rights to a property. If a refinance transaction affecting the
property is subject to recession, how many these individuals must submit a
recession notice in order to avoid the loan?
any one of the 5
when must loan applicants receive an adverse action notice and play to not
qualify for a loan?
within 30 days of adverse action
,a mortgage broker pays for Title Services on behalf of the developer. In return,
the developer agrees to refer respective buyers to the mortgage broker. Who has
violated respa?
both, mortgage broker and the developer
an applicant is too fine to consist of six pieces of information. These include the
borrowers name, income, and desired loan amount, as well as:
the borrowers social security number, and street addresses of the property he or she
wishes to purchase, and an estimate of the property value
requiring a spouse to serve as a co-owner on a loan is not a discriminatory
practice when:
the signature is required by law in a community property state
the rule that establish requirements for insurance that a borrower can afford to
take on a mortgage loan is known as the:
ability-to-repay rule
a real estate agent receives a $50 restaurant gift certificate from a mortgage
broker as a token of appreciation for the mortgage broker. Which of the following
laws was violated as a result of his transaction?
RESPA
which of the following is included in calculating the APR?
PMI, discount points, underwriting fees
which of the following is a duty assigned to the CFPB BY the Dodd-Frank Act?
taking enforcement action for violation of federal Consumer Financial law
which of the following is true of the home loan toolkit booklet?
if there are multiple borrowers, it is only required to be given to one of them
for the purpose of issuing a revised loan estimate, change of circumstances must
involve a change that caused amount to increase by at least:
10%
which of the following is defined as the cost of credit expressed as a dollar
amount?
finance charge
the loan originator compensation rule defines compensation to include all of the
following
salaries, bonuses, and commissions
under the Fair Credit Reporting Act, which of the following entities has the
burden of protecting consumers privacy when credit information being reported
Credit Reporting Agency
lenders must report detailed information about loan transaction and demographic
information concerning boring. Which of the following laws create that reporting
requirement?
HMDA
when must the closing disclosure be provided to the loan applicant under the
truth and lending rule?
no later than three business days prior to consumption
which of the following is true of PMI?
loan servicers must give borrowers annual disclosure stating that they may have the
right to cancel their p.m.
, if a creditor denies an application for a first lien mortgage, a copy of appraisal:
must be provided within 30 days of decision of deny
an acceptable anti-money laundering program must include all the following
a compliance officer, employee training and testing
all of the following may serve as a legal, non-discriminatory phases of denying a
mortgage loan application?
loan applicant in debt to income ratio is 55%, the consumer has no cash for a down
payment
for charges subject to a 10% tolerance, to the extent that some of the charges
added together exceed to some of charges disclose on the loan estimate by more
than 10%
a consumer is eligible for a refund of the difference
finance charges always include which of the following?
mortgage broker fees
an annual escrow analysis is used to do which of the following?
prevent escrow overages
which of the following transactions is covered by the truth in lending rule?
mortgage on a single family dwelling
according to Federal fair housing lending Law which of the following facts cannot
be considered when qualifying and ask for a loan?
a female applicant is 4 months pregnant and might not continue working once her baby
is born
according to the fair lending laws, which of the following May loan applicants be
asked to disclose for HMDA data collection purposes?
their race
the penalty for accepting an illegal referral fee are:
fines up to $10,000 and up to one year in prison
the Supreme Court has issued an opinion regarding Markups, stating that:
Markups are not a violation of a respa as long as the fee is not split
when must A lender advisor loan applicant about the status of their application?
within 30 days
which of the following is one of the stated reason for implementing be
interrogated mortgage disclosure form?
to use Clear language that borrowers can understand
disclosure requirement of respa would apply to which of the following loan
a loan to purchase a duplex and rehabilitate into a single family dwelling
mr. Jones loan application has been denied and he is provided with a adverse
action notice as required by ECOA. Which of the following pieces of information
would be included in the notice?
a description of credit he requested
HUD is still responsible for writing rules and implementing which of the following
Acts?
the federal fair housing act
the do-not-call implementation Act authorizes implementation and enforcement
of:
the Do Not Call Registry
complete solution
The Dodd-Frank Act includes provisions that are intended to help struggling
homeowners to obtain loan modifications by:
Requiring the CFPA to write servicing rules to facilitate loss mitigation efforts
A lender is permitted to deny an applicant credit based on which of the following
factors?
the applicant likes income stability
this rule apply to commercial Communications used to Market mortgage loan
products and services to Consumers
MAP Rule
HOEPA would not apply to
a bridge loan to finance Construction
is the Creditor permitted to call the borrower and provide the information
contained in the closing disclosure over the phone?
no, because the closing disclosure must be in writing
what is the purpose of Regulation B?
to protect discriminatory treatment of credit applicants
the following features are prohibited for a qualified mortgage
40 year term, negative amortization, interest only payments
which of the following federal agencies have supervisory responsibilities for the
truth in lending compliance?
CFPB
the real estate settlement procedures act include all of the following provisions
special information booklet, it prohibits receipt of referral fees, it limits affiliation and
settle Services may create
Murphy is a broker who has a ownership interest in a local title insurance
company. When his clients apply for loan and request referral to a title company,
Murphy must
immediately provide an Affiliated business Arrangement disclosure if he offers them to
the title company in which he has an ownership interest
Symantec auditory waiting. Between issuance of disclosure an assumption may
be waived:
if a consumer requests a waiver to to the bona fide Financial emergency
HMDA implementing regulations is:
regulation C
5 siblings have rights to a property. If a refinance transaction affecting the
property is subject to recession, how many these individuals must submit a
recession notice in order to avoid the loan?
any one of the 5
when must loan applicants receive an adverse action notice and play to not
qualify for a loan?
within 30 days of adverse action
,a mortgage broker pays for Title Services on behalf of the developer. In return,
the developer agrees to refer respective buyers to the mortgage broker. Who has
violated respa?
both, mortgage broker and the developer
an applicant is too fine to consist of six pieces of information. These include the
borrowers name, income, and desired loan amount, as well as:
the borrowers social security number, and street addresses of the property he or she
wishes to purchase, and an estimate of the property value
requiring a spouse to serve as a co-owner on a loan is not a discriminatory
practice when:
the signature is required by law in a community property state
the rule that establish requirements for insurance that a borrower can afford to
take on a mortgage loan is known as the:
ability-to-repay rule
a real estate agent receives a $50 restaurant gift certificate from a mortgage
broker as a token of appreciation for the mortgage broker. Which of the following
laws was violated as a result of his transaction?
RESPA
which of the following is included in calculating the APR?
PMI, discount points, underwriting fees
which of the following is a duty assigned to the CFPB BY the Dodd-Frank Act?
taking enforcement action for violation of federal Consumer Financial law
which of the following is true of the home loan toolkit booklet?
if there are multiple borrowers, it is only required to be given to one of them
for the purpose of issuing a revised loan estimate, change of circumstances must
involve a change that caused amount to increase by at least:
10%
which of the following is defined as the cost of credit expressed as a dollar
amount?
finance charge
the loan originator compensation rule defines compensation to include all of the
following
salaries, bonuses, and commissions
under the Fair Credit Reporting Act, which of the following entities has the
burden of protecting consumers privacy when credit information being reported
Credit Reporting Agency
lenders must report detailed information about loan transaction and demographic
information concerning boring. Which of the following laws create that reporting
requirement?
HMDA
when must the closing disclosure be provided to the loan applicant under the
truth and lending rule?
no later than three business days prior to consumption
which of the following is true of PMI?
loan servicers must give borrowers annual disclosure stating that they may have the
right to cancel their p.m.
, if a creditor denies an application for a first lien mortgage, a copy of appraisal:
must be provided within 30 days of decision of deny
an acceptable anti-money laundering program must include all the following
a compliance officer, employee training and testing
all of the following may serve as a legal, non-discriminatory phases of denying a
mortgage loan application?
loan applicant in debt to income ratio is 55%, the consumer has no cash for a down
payment
for charges subject to a 10% tolerance, to the extent that some of the charges
added together exceed to some of charges disclose on the loan estimate by more
than 10%
a consumer is eligible for a refund of the difference
finance charges always include which of the following?
mortgage broker fees
an annual escrow analysis is used to do which of the following?
prevent escrow overages
which of the following transactions is covered by the truth in lending rule?
mortgage on a single family dwelling
according to Federal fair housing lending Law which of the following facts cannot
be considered when qualifying and ask for a loan?
a female applicant is 4 months pregnant and might not continue working once her baby
is born
according to the fair lending laws, which of the following May loan applicants be
asked to disclose for HMDA data collection purposes?
their race
the penalty for accepting an illegal referral fee are:
fines up to $10,000 and up to one year in prison
the Supreme Court has issued an opinion regarding Markups, stating that:
Markups are not a violation of a respa as long as the fee is not split
when must A lender advisor loan applicant about the status of their application?
within 30 days
which of the following is one of the stated reason for implementing be
interrogated mortgage disclosure form?
to use Clear language that borrowers can understand
disclosure requirement of respa would apply to which of the following loan
a loan to purchase a duplex and rehabilitate into a single family dwelling
mr. Jones loan application has been denied and he is provided with a adverse
action notice as required by ECOA. Which of the following pieces of information
would be included in the notice?
a description of credit he requested
HUD is still responsible for writing rules and implementing which of the following
Acts?
the federal fair housing act
the do-not-call implementation Act authorizes implementation and enforcement
of:
the Do Not Call Registry
