NMLS MLO Exam with Guaranteed Accurate Answers

What must a borrower do to avoid having late payments reported to a credit bureau? - correct answer Pay within 30 days of due date Max penalty if a borrower is required to use a specific title company or settlement agent? - correct answer 3 times the fee What should not be over-weighted in an analysis of borrower repayment capacity? - correct answer Credit scores Max prepayment penalty on residential mortgages in the first year of the loan - correct answer 3% What must condominium associations do with respect to property insurance? - correct 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? - correct 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 - correct answer 2/3/6 caps - correct answer ARM initial adjustment max is 2%, subsequent adjustment period max is 3%, and lifetime cap of 6% What does FHLB stand for and what do they provide? - correct answer Federal Home Loan Bank, and they provide advances to financial institutions for residential mortgage loans According to the Dodd-Frank Act, how much risk must be retained by the securitizer for a loan that does not meet QRM guidelines? - correct answer 5% On a purchase transaction, what document contains the purchase price for a property? - correct answer Sales Contract