Mortgage Loan Origination - CompuCram -
Uniform State Content UPDATED ACTUAL
Exam Questions and CORRECT Answers
Who is "taking" a loan application?
A.) Ellen responds to a borrowers request for a different rate or fees by presenting the borrower
with a revised loan offer
B.) Fiona collects only basic identifying information about the borrower in response to an
inquiry regarding a prequalified offer from the lender
C.) Drew deliver a completed application form to a lender on behalf of a borrower
D.) Cole receives a loan application through the mail and forwards it on to the lender without
review - CORRECT ANSWER - A.) Ellen responds to a borrowers request for a different
rate or fees by presenting the borrower with a revised loan offer
Of these scenarios, Ellen is the one who is communicating directly about loan terms with the
borrower. That type of activity is considered part of taking a loan application, which requires
Ellen to be licensed.
States may require a licensee to satisfy a
A.) Net worth minimum
B.) State fund contribution amount
C.) Surety bond requirement
D.) All of these choices are possible state requirements - CORRECT ANSWER - D.) All
of these choices are possible state requirements
An applicant for licensure may need to satisfy a net work, surety bond, or state fund contribution
requirement.
,Wayne has been hired by Reasonable Mortgage Company to collect or receive payments of
principal, interest, and escrow due to the note holder for residential mortgage loans. Wayne's job
is
A.) A mortgage loan originator and requires licensing
B.) A mortgage underwriter and does not require licensing
C.) An individual loan servicer and does not require licensing
D.) A mortgage broker and requires licensing - CORRECT ANSWER - C.) An individual
loan servicer and does not require licensing
An individual loan servicer is any person who, on behalf of the note holder, collects or receives
payments including payments of principal, interest, escrow amounts, or any other amounts on
obligations due and owing to the note holder of a mortgage loan.
Estelle failed to pass the National Test with UST for MLO applicants on her first try. To retake
the test, she must wait
A.) 6 months
B.) 60 days
C.) 3 months
D.) 30 days - CORRECT ANSWER - D.) 30 days
If an applicant fails to pass each component of the written test with a score of at least 75% the
first time, she must wait 30 days to retake the test.
An example of a third party fee would be a/an
A.) Warehouse Fee
B.) Lock-In Fee
C.) Pest Inspection Fee
,D.) Application Fee - CORRECT ANSWER - C.) Pest Inspection Fee
Third party fees are limited to charges actually incurred by the lender on behalf of the borrower.
Other third party fees may include flood certification, radon test, survey, and title search.
Which activity is defined as an administrative/clerical task?
A.) Present for consideration by a borrower or prospective borrower particular residential
mortgage loan terms
B.) Receive, collect, and/or distribute information common for the processing or underwriting of
a loan
C.) Take a residential mortgage loan application
D.) Recommend, refer, or steer a borrower or prospective borrower to a particular lender or set
of residential mortgage loan terms. - CORRECT ANSWER - B.) Receive, collect, and/or
distribute information common for the processing or underwriting of a loan
Administrative or clerical tasks refer to the receipt, collection, and distribution of information
common for the processing or underwriting of a loan in the mortgage industry.
Applicants are required to provide a credit report as part of an initial MLO application primarily
so the state regulatory authority can evaluate
A.) The amount of the surety bond the applicant must file
B.) The overall financial responsibility of the applicant
C.) The overall net worth of the applicant
D.) The amount of the application fee the applicant must pay - CORRECT ANSWER - B.)
The overall financial responsibility of the applicant
, Applicants are required to a credit report primarily so that the state regulatory authority can
evaluate their history of financial responsibility.
The SAFE Act mandates specific topics that must be covered as part of a state-licensed mortgage
loan originator's continuing education every year. Which topic is NOT required?
A.) Ethics
B.) Conventional Mortgage Products
C.) Nontraditional Mortgage Products
D.) Federal Law - CORRECT ANSWER - B.) Conventional Mortgage Products
The SAFE Act does not require continuing education on conventional mortgage products;
however, for pre-licensing education, 21% is on general mortgage knowledge/mortgage
programs which includes conventional/conforming.
Brenda earns a salary as well as a commission for every residential mortgage loan application
she takes for her employer, a registered mortgage broker. Brenda must be a
A.) Certified Loan Processor
B.) Registered Mortgage Loan Originator
C.) Licensed Mortgage Loan Originator
D.) Licensed Mortgage Loan underwriter - CORRECT ANSWER - C.) Licensed
Mortgage Loan Originator
Based on this description, Brenda must be a licensed mortgage loan originator to be in
compliance with state law.
A minimum of how many hours of approved prelicensing education are required by the SAFE
Act for state-licensed mortgage loan originators?
A.) 20
Uniform State Content UPDATED ACTUAL
Exam Questions and CORRECT Answers
Who is "taking" a loan application?
A.) Ellen responds to a borrowers request for a different rate or fees by presenting the borrower
with a revised loan offer
B.) Fiona collects only basic identifying information about the borrower in response to an
inquiry regarding a prequalified offer from the lender
C.) Drew deliver a completed application form to a lender on behalf of a borrower
D.) Cole receives a loan application through the mail and forwards it on to the lender without
review - CORRECT ANSWER - A.) Ellen responds to a borrowers request for a different
rate or fees by presenting the borrower with a revised loan offer
Of these scenarios, Ellen is the one who is communicating directly about loan terms with the
borrower. That type of activity is considered part of taking a loan application, which requires
Ellen to be licensed.
States may require a licensee to satisfy a
A.) Net worth minimum
B.) State fund contribution amount
C.) Surety bond requirement
D.) All of these choices are possible state requirements - CORRECT ANSWER - D.) All
of these choices are possible state requirements
An applicant for licensure may need to satisfy a net work, surety bond, or state fund contribution
requirement.
,Wayne has been hired by Reasonable Mortgage Company to collect or receive payments of
principal, interest, and escrow due to the note holder for residential mortgage loans. Wayne's job
is
A.) A mortgage loan originator and requires licensing
B.) A mortgage underwriter and does not require licensing
C.) An individual loan servicer and does not require licensing
D.) A mortgage broker and requires licensing - CORRECT ANSWER - C.) An individual
loan servicer and does not require licensing
An individual loan servicer is any person who, on behalf of the note holder, collects or receives
payments including payments of principal, interest, escrow amounts, or any other amounts on
obligations due and owing to the note holder of a mortgage loan.
Estelle failed to pass the National Test with UST for MLO applicants on her first try. To retake
the test, she must wait
A.) 6 months
B.) 60 days
C.) 3 months
D.) 30 days - CORRECT ANSWER - D.) 30 days
If an applicant fails to pass each component of the written test with a score of at least 75% the
first time, she must wait 30 days to retake the test.
An example of a third party fee would be a/an
A.) Warehouse Fee
B.) Lock-In Fee
C.) Pest Inspection Fee
,D.) Application Fee - CORRECT ANSWER - C.) Pest Inspection Fee
Third party fees are limited to charges actually incurred by the lender on behalf of the borrower.
Other third party fees may include flood certification, radon test, survey, and title search.
Which activity is defined as an administrative/clerical task?
A.) Present for consideration by a borrower or prospective borrower particular residential
mortgage loan terms
B.) Receive, collect, and/or distribute information common for the processing or underwriting of
a loan
C.) Take a residential mortgage loan application
D.) Recommend, refer, or steer a borrower or prospective borrower to a particular lender or set
of residential mortgage loan terms. - CORRECT ANSWER - B.) Receive, collect, and/or
distribute information common for the processing or underwriting of a loan
Administrative or clerical tasks refer to the receipt, collection, and distribution of information
common for the processing or underwriting of a loan in the mortgage industry.
Applicants are required to provide a credit report as part of an initial MLO application primarily
so the state regulatory authority can evaluate
A.) The amount of the surety bond the applicant must file
B.) The overall financial responsibility of the applicant
C.) The overall net worth of the applicant
D.) The amount of the application fee the applicant must pay - CORRECT ANSWER - B.)
The overall financial responsibility of the applicant
, Applicants are required to a credit report primarily so that the state regulatory authority can
evaluate their history of financial responsibility.
The SAFE Act mandates specific topics that must be covered as part of a state-licensed mortgage
loan originator's continuing education every year. Which topic is NOT required?
A.) Ethics
B.) Conventional Mortgage Products
C.) Nontraditional Mortgage Products
D.) Federal Law - CORRECT ANSWER - B.) Conventional Mortgage Products
The SAFE Act does not require continuing education on conventional mortgage products;
however, for pre-licensing education, 21% is on general mortgage knowledge/mortgage
programs which includes conventional/conforming.
Brenda earns a salary as well as a commission for every residential mortgage loan application
she takes for her employer, a registered mortgage broker. Brenda must be a
A.) Certified Loan Processor
B.) Registered Mortgage Loan Originator
C.) Licensed Mortgage Loan Originator
D.) Licensed Mortgage Loan underwriter - CORRECT ANSWER - C.) Licensed
Mortgage Loan Originator
Based on this description, Brenda must be a licensed mortgage loan originator to be in
compliance with state law.
A minimum of how many hours of approved prelicensing education are required by the SAFE
Act for state-licensed mortgage loan originators?
A.) 20
