NMLS MLO Exam questions with correct answers

What must a borrower do to avoid having late payments reported to a credit bureau? Answer Pay within 30 days of due date Max penalty if a borrower is required to use a specific title company or settlement agent? Answer 3 times the fee What should not be over-weighted in an analysis of borrower repayment capacity? Answer Credit scores Max prepayment penalty on residential mortgages in the first year of the loan Answer 3% What must condominium associations do with respect to property insurance? Answer Keep a "blanket" policy that protects the entire structure If a lender is planning on referring a borrower to a title company that the lender has ownership in, when must the AFBA must be provided to the borrower? Answer Before the referral to the title company is made Website to obtain copy of your credit report that the credit bureaus are required to provide once per year at no charge Answer 2/3/6 caps Answer ARM initial adjustment max is 2%, subsequent adjustment period max is 3%, and lifetime cap of 6%