NMLS MLO 2025 EXAM QUESTIONS AND ANSWERS ALL CORRECT

NMLS MLO 2025 EXAM QUESTIONS AND ANSWERS ALL CORRECT What is a mortgage broker? - Answer-A COMPANY (not a person) who can originate mortgage loans, but does not have the ability to fund them Where can you find the YSP? - Answer-On the Closing Disclosure, NOT the Loan Estimate When is the period to renew your Loan Originator license? - Answer-November 1 - December 31 RESPA requires a 1/6 cushion, true or false? - Answer-False Generally, when are annual taxes due? - Answer-November 1st, escrowed taxes will be collected in full in October Intent to proceed under RESPA lasts how many days? - Answer-10 business days What loan types may REQUIRE a second appraisal? - Answer-High-Cost, Higher-Priced, FHA Max seller concessions for an FHA loan? - Answer-6% What act is the FFIEC under? - Answer-HMDA The max fine per incident under the SAFE Act is $25,000, and is $16,000 under the GLB Act. Which Act fines the individual and which fines the organization? - Answer-SAFE Act fines individual, GLB fines the organization What must a borrower do to avoid having late payments reported to a credit bureau? - Answer-Pay within 30 days of due date Max penalty if a borrower is required to use a specific title company or settlement agent? - Answer-3 times the fee What should not be over-weighted in an analysis of borrower repayment capacity? - Answer-Credit scores Max prepayment penalty on residential mortgages in the first year of the loan - Answer-3% Which Act includes provisions to protect consumers' personal financial information held by financial institutions? - Answer-Gramm-Leach-Bliley Which Act allows consumers one free credit report per year from each repository? - Answer-FACTA How many business days before loan consummation is a borrower entitled to see a revised Closing Disclosure that did not trigger an additional 3-day waiting period? - Answer-1 biz day How many days before loan consummation is a seller entitled to see the Closing Disclosure? - Answer-0 (closing day) When a consumer requests the cancellation of their escrow account, the lender has how many business days prior to closing the account to deliver an Escrow Closing Notice? - Answer-3 biz days When a lender cancels an escrow account for a reason other than default or termination caused by refinancing, repayment or rescission, they have how many days prior to closing the account to deliver an Escrow Closing Notice? - Answer-30 days Are the TILA Disclosure and Loan Estimate delivered to a reverse mortgage applicant? - Answer-The TILA Disclosure is, but the Loan Estimate is not How many days after settlement does the lender have to send the Satisfaction of Mortgage letter? - Answer-60 days Purchase Money Mortgage - Answer-Occurs when a buyer borrows from a seller either instead of, or in addition to, a lender to purchase a home lis pendens - Answer-aka Notice of Default, is when a foreclosure lawsuit is initiated on the property Fannie Mae 1006 - Answer-Form signed by the applicant to authorize the lender to verify bank balances Fannie Mae 1005 - Answer-Form signed by the applicant to authorize the lender to verify payroll information The appraisal approach that best applies to vacant land is: - Answer-Sales Comparison Approach The appraisal approach that best applies to a school is: - Answer-Cost Approach In a completion escrow account, what is the minimum estimated repair cost held in trust by a lender? - Answer-120% What must condominium associations do with respect to property insurance? - 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? - 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 - A 2/3/6 caps - 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? - 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? - Answer-5% On a purchase transaction, what document contains the purchase price for a property? - Answer-Sales Contract After a loan has been closed and funded, the creditor notices a tolerance violation with a fee between the LE and CD. How long does the creditor have to reimburse the borrower for the overcharge before being considered in violation of the TRID rule? - Answer-60 days after closing According to the Dodd-Frank Act, how much risk must be retained by the securitizer for a loan that does not meet QRM guidelines? - Answer-5% Overt Discrimination - Answer-Refusing service to anyone of a certain race, ethnicity, etc. Under ECOA can you ask how many children a borrower has? - Answer-No What document specifies that a property is being used as security in the event of nonpayment of a debt? - Answer-Mortgage On the LE, which piece of data tells applicants how much they will be paying in interest over the life of the loan as a percentage of the loan? - Answer-TIP (Total Interest Percentage)