NMLS SAFE ACT MLO EXAM
2024\2025 | GUARANTEED PASS!!
A lender provides a borrower with an initial amortization schedule for
Private Mortgage Insurance (PMI) disclosure at loan closing for an
adjustable-rate mortgage. The lender MUST also provide a written
notice stating the
A. Lender's right to increase the monthly payment amount for PMI
B. Borrower's right to refuse a PMI
C. Lender's right to extend the time for monthly payments for a PMI
D. Borrower's right to cancel PMI - Accurate Answers✔✔✔ D.
Borrower's right to cancel PMI
The Privacy Rule of the Gramm-Leach-Bliley Act requires that financial
institutions provide the consumer with a Consumer Privacy Policy
disclosure
A. each time the servicing is transferred.
B. each time the policy is revised.
C. annually as long as the relationship continues.
D. at closing only. - Accurate Answers✔✔✔ C. annually as long as the
relationship continues.
Which of the following is true of a dual contract?
,A. It deprives the seller of receipt of the full price of the property.
B. It deprives third parties of their proper fees.
C. It defrauds the lender providing the funds for the purchase of the
property.
D. It is usually used so the real estate agent may earn a higher
commission. - Accurate Answers✔✔✔ C. It defrauds the lender
providing the funds for the purchase of the property.
Explanation:
A dual contract is an instrument that states a sales price higher than the
actual sales price in an effort to obtain a larger loan from a lender or
lending institution or for the purpose of misinforming a governmental
agency or some other reason.
Which law ensures that some borrowers have the right of rescission for
three business days after a loan contract is signed?
A. Regulation Z
B. Regulation X
C. Title VIII
D. Equal Credit Opportunity Act - Accurate Answers✔✔✔ A.
Regulation Z
Explanation:
,The Truth in Lending Act (TILA) of 1968 is a United States federal law
and designed to protect Consumers in credit by requiring clear key terms
of the lending arrangement and all costs. is legal in Title I of the
Consumer Credit Protection Act, as amended. The regulations
implementing the statute, which are known as "Regulation Z", are
codified at 12 CFR Part 226. Most of the specific requirements imposed
by TILA are found in Regulation Z, so a reference to the requirements of
TILA usually refers to the requirements contained in Regulation Z, as
well as the statute itself.
Which is LEAST LIKELY to be an example of illegal flipping?
A. an inflated appraisal
B. a series of sales and quick resales
C. a group of sellers and buyers changing ownership of one property
among them
D. purchasing and remodeling a house and selling it for quick profit -
Accurate Answers✔✔✔ D. purchasing and remodeling a house and
selling it for quick profit
Explanation:
Purchasing and remodeling a house and then selling it for a quick profit
is the good side of flipping, which is perfectly legal. The illegal side of
flipping is when colluding parties profit from the sale of property with
an inflated appraisal that supports a loan. It may involve a series of sales
and quick resales, with one property and a group of sellers and buyers
changing ownership among them.
, Under the USA Patriot Act, which of the following is NOT obtained by a
mortgage broker from a borrower for customer identification purposes?
A. Alien identification number
B. Passport number
C. Taxpayer identification number
D. Credit card number - Accurate Answers✔✔✔ D. Credit card number
Which of the following is true of property flipping?
A. It is illegal.
B. It does not apply to a situation where the owner fixes up a property
and sells it shortly after acquiring it.
C. It involves making a purchase and a quick resale at a profit.
D. It is illegal when used to take advantage of a seller who had to sell
below market price because he was facing foreclosure. - Accurate
Answers✔✔✔ C. It involves making a purchase and a quick resale at a
profit.
Explanation:
Property flipping occurs when a buyer resells (flips) a property, shortly
after he has purchased it, for a much higher price than he paid. Flipping
is legal when it is the result of making a wise investment, purchasing a
property in need of work and then fixing it up, or being able to take
advantage of a seller who had to sell at a below market price, perhaps
because he was facing foreclosure.
2024\2025 | GUARANTEED PASS!!
A lender provides a borrower with an initial amortization schedule for
Private Mortgage Insurance (PMI) disclosure at loan closing for an
adjustable-rate mortgage. The lender MUST also provide a written
notice stating the
A. Lender's right to increase the monthly payment amount for PMI
B. Borrower's right to refuse a PMI
C. Lender's right to extend the time for monthly payments for a PMI
D. Borrower's right to cancel PMI - Accurate Answers✔✔✔ D.
Borrower's right to cancel PMI
The Privacy Rule of the Gramm-Leach-Bliley Act requires that financial
institutions provide the consumer with a Consumer Privacy Policy
disclosure
A. each time the servicing is transferred.
B. each time the policy is revised.
C. annually as long as the relationship continues.
D. at closing only. - Accurate Answers✔✔✔ C. annually as long as the
relationship continues.
Which of the following is true of a dual contract?
,A. It deprives the seller of receipt of the full price of the property.
B. It deprives third parties of their proper fees.
C. It defrauds the lender providing the funds for the purchase of the
property.
D. It is usually used so the real estate agent may earn a higher
commission. - Accurate Answers✔✔✔ C. It defrauds the lender
providing the funds for the purchase of the property.
Explanation:
A dual contract is an instrument that states a sales price higher than the
actual sales price in an effort to obtain a larger loan from a lender or
lending institution or for the purpose of misinforming a governmental
agency or some other reason.
Which law ensures that some borrowers have the right of rescission for
three business days after a loan contract is signed?
A. Regulation Z
B. Regulation X
C. Title VIII
D. Equal Credit Opportunity Act - Accurate Answers✔✔✔ A.
Regulation Z
Explanation:
,The Truth in Lending Act (TILA) of 1968 is a United States federal law
and designed to protect Consumers in credit by requiring clear key terms
of the lending arrangement and all costs. is legal in Title I of the
Consumer Credit Protection Act, as amended. The regulations
implementing the statute, which are known as "Regulation Z", are
codified at 12 CFR Part 226. Most of the specific requirements imposed
by TILA are found in Regulation Z, so a reference to the requirements of
TILA usually refers to the requirements contained in Regulation Z, as
well as the statute itself.
Which is LEAST LIKELY to be an example of illegal flipping?
A. an inflated appraisal
B. a series of sales and quick resales
C. a group of sellers and buyers changing ownership of one property
among them
D. purchasing and remodeling a house and selling it for quick profit -
Accurate Answers✔✔✔ D. purchasing and remodeling a house and
selling it for quick profit
Explanation:
Purchasing and remodeling a house and then selling it for a quick profit
is the good side of flipping, which is perfectly legal. The illegal side of
flipping is when colluding parties profit from the sale of property with
an inflated appraisal that supports a loan. It may involve a series of sales
and quick resales, with one property and a group of sellers and buyers
changing ownership among them.
, Under the USA Patriot Act, which of the following is NOT obtained by a
mortgage broker from a borrower for customer identification purposes?
A. Alien identification number
B. Passport number
C. Taxpayer identification number
D. Credit card number - Accurate Answers✔✔✔ D. Credit card number
Which of the following is true of property flipping?
A. It is illegal.
B. It does not apply to a situation where the owner fixes up a property
and sells it shortly after acquiring it.
C. It involves making a purchase and a quick resale at a profit.
D. It is illegal when used to take advantage of a seller who had to sell
below market price because he was facing foreclosure. - Accurate
Answers✔✔✔ C. It involves making a purchase and a quick resale at a
profit.
Explanation:
Property flipping occurs when a buyer resells (flips) a property, shortly
after he has purchased it, for a much higher price than he paid. Flipping
is legal when it is the result of making a wise investment, purchasing a
property in need of work and then fixing it up, or being able to take
advantage of a seller who had to sell at a below market price, perhaps
because he was facing foreclosure.
