The SAFE Mortgage Loan Originator
National Exam Questions With Complete
Solutions
1. A discount point is BEST described as a charge the
borrower pays to: - Correct Answers ✅A. A lender to
decrease the interest rate on the mortgage loan
2. A buyer has made an earnest money payment of $5,000.
The buyer pays an additional $2,000 in option money to be
credited at closing on a property with a sale price of
$160,000. If the required down payment is 20%, how much
additional money will the buyer need to provide toward the
down payment at closing? - Correct Answers ✅D. $25,000
3. If an applicant works 40 hours every week and is paid
$13.52 per hour, what is the applicant's monthly income? -
Correct Answers ✅B. $2,343.47
4. The requirement for private mortgage insurance is
generally discontinued when the loan-to-value ratio falls
below: - Correct Answers ✅C. 80 %
5. Which of the following documents itemizes all settlement
costs including lender charges? - Correct Answers ✅B.
HUD-1/Closing Disclosure
6. According to the Truth-in-Lending Act (TILA), the term
"refinance" applies to: - Correct Answers ✅D. The
, The SAFE Mortgage Loan Originator
National Exam Questions With Complete
Solutions
satisfaction of an existing obligation and its replacement by a
new obligation
7. What does a loan originator use to determine the
estimated value of a property based on an analytical
comparison of similar property sales? - Correct Answers
✅A. An appraisal
8. Which of the following methods of disclosure does NOT
meet the requirements of the Equal Credit Opportunity Act
(ECOA)? - Correct Answers ✅C. Telephone
9. The term "20 basis points" expressed as a percentage is: -
Correct Answers ✅B. 0.20%
10. According to the Truth-in-Lending Act (TILA), which of the
following fees is EXCLUDED from the calculation of the annual
percentage rate? - Correct Answers ✅A. Hazard insurance
11. FHA loans are: - Correct Answers ✅B. 100% insured
12. The late fee for a conventional loan is: - Correct
Answers ✅C. 5 % of principal and interest
National Exam Questions With Complete
Solutions
1. A discount point is BEST described as a charge the
borrower pays to: - Correct Answers ✅A. A lender to
decrease the interest rate on the mortgage loan
2. A buyer has made an earnest money payment of $5,000.
The buyer pays an additional $2,000 in option money to be
credited at closing on a property with a sale price of
$160,000. If the required down payment is 20%, how much
additional money will the buyer need to provide toward the
down payment at closing? - Correct Answers ✅D. $25,000
3. If an applicant works 40 hours every week and is paid
$13.52 per hour, what is the applicant's monthly income? -
Correct Answers ✅B. $2,343.47
4. The requirement for private mortgage insurance is
generally discontinued when the loan-to-value ratio falls
below: - Correct Answers ✅C. 80 %
5. Which of the following documents itemizes all settlement
costs including lender charges? - Correct Answers ✅B.
HUD-1/Closing Disclosure
6. According to the Truth-in-Lending Act (TILA), the term
"refinance" applies to: - Correct Answers ✅D. The
, The SAFE Mortgage Loan Originator
National Exam Questions With Complete
Solutions
satisfaction of an existing obligation and its replacement by a
new obligation
7. What does a loan originator use to determine the
estimated value of a property based on an analytical
comparison of similar property sales? - Correct Answers
✅A. An appraisal
8. Which of the following methods of disclosure does NOT
meet the requirements of the Equal Credit Opportunity Act
(ECOA)? - Correct Answers ✅C. Telephone
9. The term "20 basis points" expressed as a percentage is: -
Correct Answers ✅B. 0.20%
10. According to the Truth-in-Lending Act (TILA), which of the
following fees is EXCLUDED from the calculation of the annual
percentage rate? - Correct Answers ✅A. Hazard insurance
11. FHA loans are: - Correct Answers ✅B. 100% insured
12. The late fee for a conventional loan is: - Correct
Answers ✅C. 5 % of principal and interest
