SAFE MLO Exam Prep Questions and Answers 2022/2023

ECOA is Regulation ______ - ANSWER-Regulation B TILA is administered by ______ - ANSWER-CFPB HOEPA considers a loan to be high cost if total charges to borrower exceeds ______ % of loan amount? - ANSWER-5% For reverse mortgage, TILA disclosure must be delivered how many days prior to closing? - ANSWER-7 days Home Mortgage Disclosure Act (HMDA) implemented by _____ - ANSWER-FRB Loan amount, gender, race, & age; which is not required on HMDA? - ANSWER-Age HMDA does not - ANSWER-Set lending quotas for protected classes Bankruptcies are kept on record for how long? - ANSWER-10 years Tax liens are kept on record for how long? - ANSWER-7 years Borrowers entitled to a free credit report if lender takes adverse action and they ask for the report within how many days of receiving notice of the action? - ANSWER-60 days Company with established relationship can call someone _____ after last purchase - ANSWER-18 months If consumer inquiry or submits an application, can call for how long? - ANSWER-3 months Lender has how long to refund excessive variance? - ANSWER-60 days How many days before loan consummation is a borrower entitled to see a revised CD that did not trigger an additional 3-day waiting period? - ANSWER-1 business day How may days before loan consummation is a seller entitled to see the CD? - ANSWER-0 (day of closing) Without defaut or termination due to refinance, repayment or rescission, lender has how long to deliver "Escrow Closing Notice" when canceling an escrow account - ANSWER- 3 business daysLender has to retain CD and LE for how long? - ANSWER-5 years Lender has to retain Partial Payment Policy for how long? - ANSWER-5 years Lender has to retain Escrow Cancellation Notice for how long? - ANSWER-5 years TILA Disclosure, Loan Estimate, Good Faith Estimate, HUD-1; which is NOT delivered to a reverse mortgage applicant? - ANSWER-Loan Estimate How many hours of CE required? - ANSWER-8 hours Maximum # of consecutive times SAFE can be taken? - ANSWER-3 times Wait how many days between first 2 exams? - ANSWER-15 days After failing _____ times, you have to wait how long to retake? - ANSWER-3 times, 6 months adopted brother, aunt grandfather, stepmother; which is NOT an immediate family member? - ANSWER-Aunt is not immediate family member What may be true of registered LOs? - ANSWER-Registered loan originators may be bank employee Independent contractor underwriter must be... - ANSWER-a licensed LO How often does a mortgage company needs to provide report of financial condition? - ANSWER-Annually