RMLO 2025 – Questions & Accurate Answers (Pass!)
Which of the following transactions are covered by the TRID rule? (TILA-
RESPA Integrated Disclosures) Right Ans - Construction loans
The CFPB's Final Rule prohibits residential mortgage loan originator
compensation be based on which of the following? Right Ans - Yield spread
premium of a mortgage loan
Under the Red Flags Rules, mortgage loan originators must develop a written
program that identifies and detects the warning signs of Right Ans -
Identity theft
The activities carried out by the HUD's Office of Fair Housing and Equal
Opportunity include implementing and enforcing the Right Ans - Fair
Housing Act
The Secure and Fair Enforcement for Mortgage licensing Act of 2008 is a key
component of what Federal Law? Right Ans - Housing and Economic
Recovery Act of 2008
The Electronic Signature in Global and National Commerce Act (ESign Act)
made it possible to conduct business online by legitimizing electronic
signatures. The E-Sign Act requires all the following except Right Ans - That
a signature, contract, or other record relating to all transactions may not be
denied legal effect, validity, or enforceability solely because it is in electronic
form
As defined by the SAFE Act, a tranditional mortgage loan is Right Ans - Any
30 year fixed rate mortgage loan
To meet the annual continuing education requirements required by the SAFE
Act, a licensed mortgage loan originator shall complete Right Ans - At least
8 hours of education approved by the National Mortgage Licensing System
and Registry
Xavier has been charged with alleged violations of his state's SAFE Act. Before
a civil penalty may be imposed on him, the state is required to Right Ans -
Provide Xavier notice and an opportunity for a hearing
,For purposes of the SAFE ACT, a person has shown that he or she is nor
financially responsible when they show a disregard in the management of
their own financial condition. Which of the following would best indicate that
an individual has not shown financial responsibility Right Ans - A pattern
of seriously delinquent accounts within the past 3 years
Which of the following persons is not exempt from licensing under the SAFE
Act? Right Ans - An individual who is an independent contractor engaging
in residential mortgage loan origination activities as a loan processor or
underwriter
To be a qualified mortgage, the Truth in Lending Act specifies that the
mortgage and creditor must meet all the following criteria except Right Ans
- Must not result an increase of the principal balance (negative amortization)
The Truth in lending act required residential mortgage loan originators to
make certain "material disclosures" on loans subject to the Real Estate
Settlement Procedures Act within three Right Ans - Business days after
their receipt of a written application
The Truth in Lending Act's advertising provisions require that if an
advertisement promoting "closed end credit" contains a "triggering term"
three specific disclosures must also be included in the advertisement. Which
of the following is not considered a "triggering term" under Regulation Z?
Right Ans - The Annual Percentage Rate
The Fraud Enforcement and Recovery Act (FERA) was signed into law by
president Barack Obama in May 2009. It increased the penalties for a federal
conviction for mortgage fraud to a maximum for Right Ans - 30 years in
federal prison or $1000000 fine or both
According to fair lending laws, age may be considered a factor in denying a
loan application if Right Ans - The applicant is too young to enter a binding
contract
What Federal law protects the privacy of the consumer and requires a loan
originator to provide a clear, conspicuous, and accurate statement of the
company's privacy practices? Right Ans - Gramm Leach Bliley Act
,A Residential Mortgage Loan Originator employed by a federally insured
depository institution Right Ans - must be registed
All licenses issued shall be valid for a term of not more than one year from the
date of issuance and shall expire Right Ans - on December 31st of the year
issued
To meet the written test requirement of the SAFE Act, an individual must
achieve a test score Right Ans - of not less than 75 percent correct answers
to questions
An individual who completed 20 hours pre-licensure education but failed to
acquire a valid state license as a mortgage loan originator within three years
must Right Ans - complete 20 hours of Pre-licensure education
An Individual may retake a test 2 consecutive times, with each consecutive
taking occurring at least 30 days after the preceding test. After failing
consecutive test, an individual shall Right Ans - Wait at least 6 months
before taking the test again
A licensed mortgage loan originator who subsequently becomes unlicensed
must complete the continuing education requirements Right Ans - For the
last year in which the license was held prior to issuance of a new or renewed
license
The unique identifier of a person originating a residential mortgage loan must
be clearly shown on all the following except Right Ans - all internal office
communications
A realtor has referred to you a buyer in need of a mortgage loan to purchase a
property. During the loan application interview, the applicant asks, how much
additional income do I need to show in order to qualify for a 15 year fixed rate
mortgage? What is the most ethical response? Right Ans - Let's review your
tax returns and bank statements to determine your income
When a lender applies a policy or practice equally to credit applicants, but the
policy or practice has a disproportionate adverse consequence on applicants
, from a group protected against discrimination, the policy or practice is
described as Right Ans - disparate impact
A real estate licensee, for a $50 fee per lead, offers a mortgage company names
and telephone numbers of all the people who attended an open house. Who is
in violation of RESPA? Right Ans - Neither the mortgage company or the
real estate licensee
A mortgage professional who violates the RESPA prohibition on referral fees
is subject to Right Ans - Fines of $10,000 and up to one year in prison
A consumer requests the name of a good attorney from a residential mortgage
loan originator. The RMLO provides a list of three attorneys they have
conducted business with in the past. The RMLO does not have an affiliated
relationship or a direct or beneficial ownership relationship with any of the
attorneys. When, according to RESPA, must the RMLO provide the affiliated
business arrangement disclosure to the consumer? Right Ans - The RMLO
is not required to give a disclosure if they have no interest in any of the
referred parties
Which of the following actions by a loan originator would be a violation of the
Equal Credit Opportunity Act (ECOA) Right Ans - Not considering income
offered by the applicant that is obtained from a public assistance program
A loan originator's company policy requires that each transaction earn $3000
in branch fees. The originator recently closed and funded a loan for a relative.
The loan amount was $250k. The originator collected fees of $750 only.
According to the information given and the ECOA, the loan originator acted
Right Ans - Legally / Unethically
A mortgage loan originator has a 40% ownership of a survey company. The
mortgage broker refers business to the survey company and provides a
written disclosure (CBA), prior to the time of referral, to the borrower of their
business relationship. The written disclosure also makes it clear that the
borrower is not required to use the services of the survey company. Who is in
violation of RESPA section 8? Right Ans - Neither the mortgage broker nor
the survey company.
Which of the following transactions are covered by the TRID rule? (TILA-
RESPA Integrated Disclosures) Right Ans - Construction loans
The CFPB's Final Rule prohibits residential mortgage loan originator
compensation be based on which of the following? Right Ans - Yield spread
premium of a mortgage loan
Under the Red Flags Rules, mortgage loan originators must develop a written
program that identifies and detects the warning signs of Right Ans -
Identity theft
The activities carried out by the HUD's Office of Fair Housing and Equal
Opportunity include implementing and enforcing the Right Ans - Fair
Housing Act
The Secure and Fair Enforcement for Mortgage licensing Act of 2008 is a key
component of what Federal Law? Right Ans - Housing and Economic
Recovery Act of 2008
The Electronic Signature in Global and National Commerce Act (ESign Act)
made it possible to conduct business online by legitimizing electronic
signatures. The E-Sign Act requires all the following except Right Ans - That
a signature, contract, or other record relating to all transactions may not be
denied legal effect, validity, or enforceability solely because it is in electronic
form
As defined by the SAFE Act, a tranditional mortgage loan is Right Ans - Any
30 year fixed rate mortgage loan
To meet the annual continuing education requirements required by the SAFE
Act, a licensed mortgage loan originator shall complete Right Ans - At least
8 hours of education approved by the National Mortgage Licensing System
and Registry
Xavier has been charged with alleged violations of his state's SAFE Act. Before
a civil penalty may be imposed on him, the state is required to Right Ans -
Provide Xavier notice and an opportunity for a hearing
,For purposes of the SAFE ACT, a person has shown that he or she is nor
financially responsible when they show a disregard in the management of
their own financial condition. Which of the following would best indicate that
an individual has not shown financial responsibility Right Ans - A pattern
of seriously delinquent accounts within the past 3 years
Which of the following persons is not exempt from licensing under the SAFE
Act? Right Ans - An individual who is an independent contractor engaging
in residential mortgage loan origination activities as a loan processor or
underwriter
To be a qualified mortgage, the Truth in Lending Act specifies that the
mortgage and creditor must meet all the following criteria except Right Ans
- Must not result an increase of the principal balance (negative amortization)
The Truth in lending act required residential mortgage loan originators to
make certain "material disclosures" on loans subject to the Real Estate
Settlement Procedures Act within three Right Ans - Business days after
their receipt of a written application
The Truth in Lending Act's advertising provisions require that if an
advertisement promoting "closed end credit" contains a "triggering term"
three specific disclosures must also be included in the advertisement. Which
of the following is not considered a "triggering term" under Regulation Z?
Right Ans - The Annual Percentage Rate
The Fraud Enforcement and Recovery Act (FERA) was signed into law by
president Barack Obama in May 2009. It increased the penalties for a federal
conviction for mortgage fraud to a maximum for Right Ans - 30 years in
federal prison or $1000000 fine or both
According to fair lending laws, age may be considered a factor in denying a
loan application if Right Ans - The applicant is too young to enter a binding
contract
What Federal law protects the privacy of the consumer and requires a loan
originator to provide a clear, conspicuous, and accurate statement of the
company's privacy practices? Right Ans - Gramm Leach Bliley Act
,A Residential Mortgage Loan Originator employed by a federally insured
depository institution Right Ans - must be registed
All licenses issued shall be valid for a term of not more than one year from the
date of issuance and shall expire Right Ans - on December 31st of the year
issued
To meet the written test requirement of the SAFE Act, an individual must
achieve a test score Right Ans - of not less than 75 percent correct answers
to questions
An individual who completed 20 hours pre-licensure education but failed to
acquire a valid state license as a mortgage loan originator within three years
must Right Ans - complete 20 hours of Pre-licensure education
An Individual may retake a test 2 consecutive times, with each consecutive
taking occurring at least 30 days after the preceding test. After failing
consecutive test, an individual shall Right Ans - Wait at least 6 months
before taking the test again
A licensed mortgage loan originator who subsequently becomes unlicensed
must complete the continuing education requirements Right Ans - For the
last year in which the license was held prior to issuance of a new or renewed
license
The unique identifier of a person originating a residential mortgage loan must
be clearly shown on all the following except Right Ans - all internal office
communications
A realtor has referred to you a buyer in need of a mortgage loan to purchase a
property. During the loan application interview, the applicant asks, how much
additional income do I need to show in order to qualify for a 15 year fixed rate
mortgage? What is the most ethical response? Right Ans - Let's review your
tax returns and bank statements to determine your income
When a lender applies a policy or practice equally to credit applicants, but the
policy or practice has a disproportionate adverse consequence on applicants
, from a group protected against discrimination, the policy or practice is
described as Right Ans - disparate impact
A real estate licensee, for a $50 fee per lead, offers a mortgage company names
and telephone numbers of all the people who attended an open house. Who is
in violation of RESPA? Right Ans - Neither the mortgage company or the
real estate licensee
A mortgage professional who violates the RESPA prohibition on referral fees
is subject to Right Ans - Fines of $10,000 and up to one year in prison
A consumer requests the name of a good attorney from a residential mortgage
loan originator. The RMLO provides a list of three attorneys they have
conducted business with in the past. The RMLO does not have an affiliated
relationship or a direct or beneficial ownership relationship with any of the
attorneys. When, according to RESPA, must the RMLO provide the affiliated
business arrangement disclosure to the consumer? Right Ans - The RMLO
is not required to give a disclosure if they have no interest in any of the
referred parties
Which of the following actions by a loan originator would be a violation of the
Equal Credit Opportunity Act (ECOA) Right Ans - Not considering income
offered by the applicant that is obtained from a public assistance program
A loan originator's company policy requires that each transaction earn $3000
in branch fees. The originator recently closed and funded a loan for a relative.
The loan amount was $250k. The originator collected fees of $750 only.
According to the information given and the ECOA, the loan originator acted
Right Ans - Legally / Unethically
A mortgage loan originator has a 40% ownership of a survey company. The
mortgage broker refers business to the survey company and provides a
written disclosure (CBA), prior to the time of referral, to the borrower of their
business relationship. The written disclosure also makes it clear that the
borrower is not required to use the services of the survey company. Who is in
violation of RESPA section 8? Right Ans - Neither the mortgage broker nor
the survey company.
