UST STUDY FOR MLO EXAM Questions
and answers 2025
TIL/TILA
Regulation ,Z ,- ,CORRECT ,ANSWER-Regulates ,APR, ,Advertising, ,Rescission,
,3/7/3 ,Rule. ,Disclosures ,required: ,Truth ,in ,Lending, ,ARM, ,CHARM ,booklet
,(Consumer ,Handbook ,on ,Adjustable ,Rate ,Mortgage), ,when ,your ,home ,is ,on ,the
,line ,booklet. ,Disclosure ,must ,be ,sent ,if ,APR ,changes ,by ,more ,than ,0.125 ,on
,fixed ,or ,0.25 ,on ,ARM. ,Disclosure ,must ,be ,retained ,by ,lender ,for ,2 ,years. ,CD
,must ,be ,kept ,for ,5 ,years.
Triggering ,Term ,- ,CORRECT ,ANSWER-Under ,TILA, ,anything ,in ,an
,advertisement ,that ,has ,a ,number. ,Amount ,of ,down ,payment, ,amount ,of ,any
,payment, ,number ,of ,payments, ,period ,of ,payments, ,or ,finance ,charge ,must
,also ,give ,APR. ,Exception ,is ,0 ,down ,payment/100% ,financing.
RESPA
Regulation ,X ,- ,CORRECT ,ANSWER-Federal ,law ,dealing ,with ,real ,estate ,closings
,that ,provide ,specific ,procedures ,and ,guidelines ,for ,the ,disclosure ,of
,settlement ,costs.
Good ,Faith ,Estimate ,(GFE), ,Section ,8, ,9, ,10. ,GFE ,given ,within ,3 ,days ,of ,taking
,application. ,(HUD1 ,or ,HUD1A ,for ,refinances) ,is ,required ,to ,be ,given ,1 ,day
,before ,closing ,if ,requested ,by ,the ,borrower ,and ,again ,at ,closing ,regardless ,of
,if ,they ,received ,it ,the ,day ,before.
Section ,8 ,(RESPA) ,- ,CORRECT ,ANSWER-Kickbacks ,$10,000 ,fine, ,1 ,year ,in
,prison ,and ,3 ,times ,the ,liability. ,Marketing ,items ,are ,allowed.
, Section ,9 ,(RESPA) ,- ,CORRECT ,ANSWER-Title ,Insurance: ,Can't ,not ,force ,a
,specific ,title ,insurance
Section ,10 ,(RESPA) ,- ,CORRECT ,ANSWER-Escrow ,Limitations: ,no ,more ,than
,1/12 ,of ,the ,annual ,disbursement ,can ,be ,collected ,per ,month. ,Allows ,for ,a ,2
,month ,cushion ,to ,be ,collected ,at ,closing ,and ,must ,be ,reviewed ,annually. ,More
,than ,$50 ,overage ,must ,be ,returned ,to ,the ,borrower.
RESPA ,Disclosures ,- ,CORRECT ,ANSWER-Within ,in ,3 ,days ,of ,app: ,GFE,
,Settlement ,Cost ,Information ,Booklet, ,Mortgage ,Servicing ,Disclosure
Before ,closing: ,HUD1 ,if ,requested, ,Affiliated ,Business ,Arrangement.
At ,closing: ,HUD-1, ,Initial ,Escrow ,Statement ,or ,45 ,days ,after ,closing
After ,Closing: ,Servicing ,Disclosure ,Statement, ,Annual ,Escrow ,Statement.
Disclosures ,must ,be ,retained ,by ,lender ,for ,3 ,years
HUD1 ,aka ,CD ,must ,be ,retained ,for ,5 ,years.
AfBA/ABA ,- ,CORRECT ,ANSWER-Personal ,or ,1% ,financial ,interest ,in ,another
,company ,being ,used ,on ,the ,same ,transaction ,must ,be ,disclosed ,to ,the
,borrower.
MDIA ,- ,Mortgage ,Disclosure ,Improvement ,Act ,- ,CORRECT ,ANSWER-
Implemented ,through ,Regulation ,Z, ,to ,ensure ,that ,consumers ,receive ,good
,faith ,estimates ,of ,Truth ,in ,Lending ,Act ,(TILA) ,disclosures ,at ,the ,beginning ,of
,the ,application ,process ,and ,to ,provide ,sufficient ,time ,for ,consumers ,to ,review
,the ,disclosures ,before ,consummation ,can ,take ,place. ,Remember ,the ,3/7/3 ,rule.
FACTA ,- ,Fair ,and ,Accurate ,Credit ,Transaction ,Act ,- ,CORRECT ,ANSWER-Allows
,the ,customer ,a ,free ,credit ,report ,if ,been ,compromised.
Fraud ,and ,identity ,theft ,
Sub-act ,of ,FCRA
Section ,114-red ,flag ,rules: ,must ,verify ,that ,person ,requesting ,the ,change ,is
,actually ,the ,borrower.
Borrower ,can ,place ,a ,credit ,freeze ,or ,fraud ,alert ,on ,credit ,report.
and answers 2025
TIL/TILA
Regulation ,Z ,- ,CORRECT ,ANSWER-Regulates ,APR, ,Advertising, ,Rescission,
,3/7/3 ,Rule. ,Disclosures ,required: ,Truth ,in ,Lending, ,ARM, ,CHARM ,booklet
,(Consumer ,Handbook ,on ,Adjustable ,Rate ,Mortgage), ,when ,your ,home ,is ,on ,the
,line ,booklet. ,Disclosure ,must ,be ,sent ,if ,APR ,changes ,by ,more ,than ,0.125 ,on
,fixed ,or ,0.25 ,on ,ARM. ,Disclosure ,must ,be ,retained ,by ,lender ,for ,2 ,years. ,CD
,must ,be ,kept ,for ,5 ,years.
Triggering ,Term ,- ,CORRECT ,ANSWER-Under ,TILA, ,anything ,in ,an
,advertisement ,that ,has ,a ,number. ,Amount ,of ,down ,payment, ,amount ,of ,any
,payment, ,number ,of ,payments, ,period ,of ,payments, ,or ,finance ,charge ,must
,also ,give ,APR. ,Exception ,is ,0 ,down ,payment/100% ,financing.
RESPA
Regulation ,X ,- ,CORRECT ,ANSWER-Federal ,law ,dealing ,with ,real ,estate ,closings
,that ,provide ,specific ,procedures ,and ,guidelines ,for ,the ,disclosure ,of
,settlement ,costs.
Good ,Faith ,Estimate ,(GFE), ,Section ,8, ,9, ,10. ,GFE ,given ,within ,3 ,days ,of ,taking
,application. ,(HUD1 ,or ,HUD1A ,for ,refinances) ,is ,required ,to ,be ,given ,1 ,day
,before ,closing ,if ,requested ,by ,the ,borrower ,and ,again ,at ,closing ,regardless ,of
,if ,they ,received ,it ,the ,day ,before.
Section ,8 ,(RESPA) ,- ,CORRECT ,ANSWER-Kickbacks ,$10,000 ,fine, ,1 ,year ,in
,prison ,and ,3 ,times ,the ,liability. ,Marketing ,items ,are ,allowed.
, Section ,9 ,(RESPA) ,- ,CORRECT ,ANSWER-Title ,Insurance: ,Can't ,not ,force ,a
,specific ,title ,insurance
Section ,10 ,(RESPA) ,- ,CORRECT ,ANSWER-Escrow ,Limitations: ,no ,more ,than
,1/12 ,of ,the ,annual ,disbursement ,can ,be ,collected ,per ,month. ,Allows ,for ,a ,2
,month ,cushion ,to ,be ,collected ,at ,closing ,and ,must ,be ,reviewed ,annually. ,More
,than ,$50 ,overage ,must ,be ,returned ,to ,the ,borrower.
RESPA ,Disclosures ,- ,CORRECT ,ANSWER-Within ,in ,3 ,days ,of ,app: ,GFE,
,Settlement ,Cost ,Information ,Booklet, ,Mortgage ,Servicing ,Disclosure
Before ,closing: ,HUD1 ,if ,requested, ,Affiliated ,Business ,Arrangement.
At ,closing: ,HUD-1, ,Initial ,Escrow ,Statement ,or ,45 ,days ,after ,closing
After ,Closing: ,Servicing ,Disclosure ,Statement, ,Annual ,Escrow ,Statement.
Disclosures ,must ,be ,retained ,by ,lender ,for ,3 ,years
HUD1 ,aka ,CD ,must ,be ,retained ,for ,5 ,years.
AfBA/ABA ,- ,CORRECT ,ANSWER-Personal ,or ,1% ,financial ,interest ,in ,another
,company ,being ,used ,on ,the ,same ,transaction ,must ,be ,disclosed ,to ,the
,borrower.
MDIA ,- ,Mortgage ,Disclosure ,Improvement ,Act ,- ,CORRECT ,ANSWER-
Implemented ,through ,Regulation ,Z, ,to ,ensure ,that ,consumers ,receive ,good
,faith ,estimates ,of ,Truth ,in ,Lending ,Act ,(TILA) ,disclosures ,at ,the ,beginning ,of
,the ,application ,process ,and ,to ,provide ,sufficient ,time ,for ,consumers ,to ,review
,the ,disclosures ,before ,consummation ,can ,take ,place. ,Remember ,the ,3/7/3 ,rule.
FACTA ,- ,Fair ,and ,Accurate ,Credit ,Transaction ,Act ,- ,CORRECT ,ANSWER-Allows
,the ,customer ,a ,free ,credit ,report ,if ,been ,compromised.
Fraud ,and ,identity ,theft ,
Sub-act ,of ,FCRA
Section ,114-red ,flag ,rules: ,must ,verify ,that ,person ,requesting ,the ,change ,is
,actually ,the ,borrower.
Borrower ,can ,place ,a ,credit ,freeze ,or ,fraud ,alert ,on ,credit ,report.
