MLO National Test Combined Important Study Set questions with correct answers

Regulation Z Answer The regulations issued under the Truth-in Lending Act that set forth the specific requirements that a lender must follow in order to comply with the Truth-In-Lending law. Revolving Debt Answer A type of credit arrangement in which a consumer is pre-approved for a line of credit and they may make purchases against that credit. The Lender is also know as the: Answer Mortagee (lien theory/mortgage), beneficiary (title theory/deed of trust), grantor, vendor (land contract), payee (promissory note) The borrower is also known as the: Answer Mortgagor (lien theory/mortgage), trustor (title theory/deed of trust), grantee, vendee (land contract), maker (one promising to pay the promissory note) Net Effective Income Answer The borrower's gross income minus the federal income tax. Note Answer A legal document that requires a borrower to repay a mortgage loan and which specifies the terms by which repayment will occur. Note Rate Answer The stated interest rate on a mortgage or loan agreement.