NMLS MLO EXAM QUESTIONS WITH
100% CORRECT ANSWERS
What does ECOA stand for? - Answer-Equal Credit Opportunity Act
The loan estimate must be retained for how long? - Answer-3 years
What does HMDA stand for? - Answer-Home Mortgage Disclosure Act
What does NOV stand for? - Answer-Notice of Value
What does CRV stand for? - Answer-Certificate of Reasonable Value
What does the "R" stand for in the acronym NMLSR? - Answer-REGISTRY
What is a Mortgage Call Report (MCR)? - Answer-Quarterly Report required by MLO
Company and Mortgage Brokers
Loan originator organizations must keep compensation records for how many years? -
Answer-3 years
Mortgage companies must submit a residential loan origination activity report to the
NMLSR every: - Answer-Three months
What is the process in which a broker originates and closes a loan in his/her own name,
then transfers the loan to a lender at closing? - Answer-Table Funding
What law protects homeowners from foreclosure-prevention scams? - Answer-Mortgage
Assistance Relief Services Rule
Individuals must file a report when they transport how much cash out the country? -
Answer-$10,000 or more
What type of federal report is filed when financial institutions defect suspicious activity?
- Answer-Suspicious Activity Report
Which law requires businesses to print only the last five card numbers on a credit card
receipt? - Answer-FACT ACT
,What happens if the acceptable variance between the Loan Estimate and the Closing
Disclosure is exceeded? - Answer-The excess is refunded to the borrower within 60
days
A higher-priced home loan is one that has: - Answer-APR exceeds the average prime
rate by at least 1.5% for first-lien loans
What is the shortest time in which a mortgage purchase loan can close? - Answer-7
business days
What type of mortgage is non-recourse loan? - Answer-Reverse Mortgage
A lender that offers mortgage loans directly to the public is a: - Answer-Retail lender
What type of loan is short-term with money advanced in stages? - Answer-Construction
What law requires ARM borrowers to receive the Consumer Handbook on Adjustable
Rate Mortgages? - Answer-TILA
Which law requires that the "Know Before You Owe" booklet be given to the borrower? -
Answer-RESPA
Lenders must maintain an escrow account for higher-priced (Section 35) mortgages for
a minimum of? - Answer-5 years
What is the Fannie Mae appraisal report form? - Answer-URAR - 1004 Form
What term describes the process of a senior mortgage lien-holder voluntarily changing
into a junior mortgage lien-holder? - Answer-Subordination
What lien has the highest priority and is paid off first when a property is sold? - Answer-
Property Tax
What document is assigned along with the mortgage? - Answer-Promissory note
What does Ginnie Mae do? - Answer-Guarantees Ginnie-Mae mortgage-backed
securities
Which law requires lenders to train employees to recognize the Red Flags of identity
theft? - Answer-FACT Act
Which law entitles a borrower to a copy of his appraisal report? - Answer-ECOA
What type of funding occurs when a lender borrows money from an investor and
assigns the mortgage and note to the investor immediately after closing? - Answer-
Table
, The lowest possible interest rate for an ARM loan is known as the: - Answer-Floor
If an application works 40 hours every week and is paid $13.52 per hour, what is the
applicant's monthly income? - Answer-$2,343.47
What law prohibits discrimination in the sale & lease of property? - Answer-Fair Housing
Act
The term "20 basis points" expressed as a percentage is: - Answer-0.20%
The late fee for a conventional loan is: - Answer-5% of principal and interest
A non-refundable funding fee is required for a: - Answer-VA loan
The mortgage is the: - Answer-Lender
Who does Fannie Mae hold responsible for the quality of an appraisal? - Answer-Lender
Which law prohibits discrimination by lenders when extending credit? - Answer-Equal
Credit Opportunity Act
A property sold for $200,000 and was appraised at $180,000. The borrower received a
loan for $150,000. What is the loan-to-value? - Answer-83.3%
How many days does a lender have to send an adverse action notice? - Answer-30
The enforcement of a lien is known as a: - Answer-Foreclosure
What minimum percentage of ownership qualifies an individual as self-employed? -
Answer-25%
Which law defines the right of rescission? - Answer-Truth-In-Lending
How long after the application date must social security payments continue to be
received in order to count as income? - Answer-3 years
Which clause in a mortgage allows a lender to increase the interest rate? - Answer-
Escalation
A VA appraisal is known as a: - Answer-CRV or NOV
Which types of loans are meant for rural areas? - Answer-USDA - Section 502
100% CORRECT ANSWERS
What does ECOA stand for? - Answer-Equal Credit Opportunity Act
The loan estimate must be retained for how long? - Answer-3 years
What does HMDA stand for? - Answer-Home Mortgage Disclosure Act
What does NOV stand for? - Answer-Notice of Value
What does CRV stand for? - Answer-Certificate of Reasonable Value
What does the "R" stand for in the acronym NMLSR? - Answer-REGISTRY
What is a Mortgage Call Report (MCR)? - Answer-Quarterly Report required by MLO
Company and Mortgage Brokers
Loan originator organizations must keep compensation records for how many years? -
Answer-3 years
Mortgage companies must submit a residential loan origination activity report to the
NMLSR every: - Answer-Three months
What is the process in which a broker originates and closes a loan in his/her own name,
then transfers the loan to a lender at closing? - Answer-Table Funding
What law protects homeowners from foreclosure-prevention scams? - Answer-Mortgage
Assistance Relief Services Rule
Individuals must file a report when they transport how much cash out the country? -
Answer-$10,000 or more
What type of federal report is filed when financial institutions defect suspicious activity?
- Answer-Suspicious Activity Report
Which law requires businesses to print only the last five card numbers on a credit card
receipt? - Answer-FACT ACT
,What happens if the acceptable variance between the Loan Estimate and the Closing
Disclosure is exceeded? - Answer-The excess is refunded to the borrower within 60
days
A higher-priced home loan is one that has: - Answer-APR exceeds the average prime
rate by at least 1.5% for first-lien loans
What is the shortest time in which a mortgage purchase loan can close? - Answer-7
business days
What type of mortgage is non-recourse loan? - Answer-Reverse Mortgage
A lender that offers mortgage loans directly to the public is a: - Answer-Retail lender
What type of loan is short-term with money advanced in stages? - Answer-Construction
What law requires ARM borrowers to receive the Consumer Handbook on Adjustable
Rate Mortgages? - Answer-TILA
Which law requires that the "Know Before You Owe" booklet be given to the borrower? -
Answer-RESPA
Lenders must maintain an escrow account for higher-priced (Section 35) mortgages for
a minimum of? - Answer-5 years
What is the Fannie Mae appraisal report form? - Answer-URAR - 1004 Form
What term describes the process of a senior mortgage lien-holder voluntarily changing
into a junior mortgage lien-holder? - Answer-Subordination
What lien has the highest priority and is paid off first when a property is sold? - Answer-
Property Tax
What document is assigned along with the mortgage? - Answer-Promissory note
What does Ginnie Mae do? - Answer-Guarantees Ginnie-Mae mortgage-backed
securities
Which law requires lenders to train employees to recognize the Red Flags of identity
theft? - Answer-FACT Act
Which law entitles a borrower to a copy of his appraisal report? - Answer-ECOA
What type of funding occurs when a lender borrows money from an investor and
assigns the mortgage and note to the investor immediately after closing? - Answer-
Table
, The lowest possible interest rate for an ARM loan is known as the: - Answer-Floor
If an application works 40 hours every week and is paid $13.52 per hour, what is the
applicant's monthly income? - Answer-$2,343.47
What law prohibits discrimination in the sale & lease of property? - Answer-Fair Housing
Act
The term "20 basis points" expressed as a percentage is: - Answer-0.20%
The late fee for a conventional loan is: - Answer-5% of principal and interest
A non-refundable funding fee is required for a: - Answer-VA loan
The mortgage is the: - Answer-Lender
Who does Fannie Mae hold responsible for the quality of an appraisal? - Answer-Lender
Which law prohibits discrimination by lenders when extending credit? - Answer-Equal
Credit Opportunity Act
A property sold for $200,000 and was appraised at $180,000. The borrower received a
loan for $150,000. What is the loan-to-value? - Answer-83.3%
How many days does a lender have to send an adverse action notice? - Answer-30
The enforcement of a lien is known as a: - Answer-Foreclosure
What minimum percentage of ownership qualifies an individual as self-employed? -
Answer-25%
Which law defines the right of rescission? - Answer-Truth-In-Lending
How long after the application date must social security payments continue to be
received in order to count as income? - Answer-3 years
Which clause in a mortgage allows a lender to increase the interest rate? - Answer-
Escalation
A VA appraisal is known as a: - Answer-CRV or NOV
Which types of loans are meant for rural areas? - Answer-USDA - Section 502
