NMLS MLO Exam Questions with 100%
Correct Answers
B) Fines of up to $10,000 and up to one year in prison
The penalties for paying or accepting an illegal referral fee are:
A) Fines of up to $5,000 and up to one year in prison
B) Fines of up to $10,000 and up to one year in prison
C) Fines of up to $10,000 and up to three years in prison
D) Fines of up to $20,000 and up to one year in prison
B) Prevent escrow overages
An annual escrow analysis is used to do which of the following?
A) Report underwriting errors
B) Prevent escrow overages
C) Ensure the loan is properly amortized
D) Reduce burden on the servicer
D) A loan to purchase a duplex and rehabilitate it into a single-family dwelling
· The disclosure requirements of RESPA would apply to which of the following loans?
A) A loan to purchase 75 acres of land
B) A farm loan
C) A loan to purchase a property that includes a gas station and convenience store
D) A loan to purchase a duplex and rehabilitate it into a single-family dwelling
C) Within 30 days
· A customer with an excellent credit score submits a loan application. When does ECOA
require that the applicant be advised of the status of the application?
,A) Within one week
B) Within three days
C) Within 30 days
D) Within 90 days
D) His credit score
· Mr. Jones's loan application has been denied and he is provided with an Adverse Action
Notice as required by ECOA. Which of the following pieces of information would not be
included on the notice?
A) Information on the credit reporting agency if the adverse action is based on his credit
report
B) Reasons for the denial of credit
C) A description of credit he requested
D) His credit score
B) Their race
· According to fair lending laws, which of the following may loan applicants be asked to
disclose for MHDA data collection purposes?
A) Their religion
B) Their race
C) If they will stop working once they have children
D) If they plan to have more than one child
A) Mortgage broker fee
· Finance charges always include which of the following?
A) Mortgage broker fee
B) Title insurance charges
,C) Document preparation fees
D) Credit report fee
D) Escrow fees
· Which of the following is not included in calculating the APR?
A) Discount points
B) Underwriting fees
C) PMI
D) Escrow fees
C) Trigger terms
· The amount of the down payment, the amount of the finance charge, or the number of
payments needed are all examples of __ under TILA
A) Components of the finance charge
B) Components of the APR
C) Trigger terms
D) Prohibited disclosures
C) Saturday
· A borrower has gone to settlement for a cash-out refinance on Tuesday for his principal
residence. His rescission period is over at midnight on Friday. According to the provision
specified under federal law, what is the first possible day the loan could fund?
A) Tuesday
B) Friday
C) Saturday
D) Monday, the following week
, D) TILA
· HOEPA was enacted as a part of:
A) HMDA
B) ECOA
C) RESPA
D) TILA
C) Higher-priced mortgage loans
· Closed-end loans with rates that exceed the average prime offer rate, but are not high
enough to trigger protections under HOEPA, are known as:
A) Reverse mortgages
B) Subprime mortgage loans
C) Higher-priced mortgage loans
D) Qualified high-cost mortgages
C) The third business day after the Closing Disclosure is mailed
· XYZ Mortgage Company just mailed a Closing Disclosure to a consumer. The waiting
period prior to closing will begin:
A) On the date that the Closing Disclosure is mailed
B) The next business day after the Closing Disclosure is mailed
C) The third business day after the Closing Disclosure is mailed
D) The day on which the company received a completed, signed loan application
B) If the consumer requests a waiver due to a bona fide financial emergency
· The mandatory waiting period between issuance of disclosures and consummation may be
waived:
Correct Answers
B) Fines of up to $10,000 and up to one year in prison
The penalties for paying or accepting an illegal referral fee are:
A) Fines of up to $5,000 and up to one year in prison
B) Fines of up to $10,000 and up to one year in prison
C) Fines of up to $10,000 and up to three years in prison
D) Fines of up to $20,000 and up to one year in prison
B) Prevent escrow overages
An annual escrow analysis is used to do which of the following?
A) Report underwriting errors
B) Prevent escrow overages
C) Ensure the loan is properly amortized
D) Reduce burden on the servicer
D) A loan to purchase a duplex and rehabilitate it into a single-family dwelling
· The disclosure requirements of RESPA would apply to which of the following loans?
A) A loan to purchase 75 acres of land
B) A farm loan
C) A loan to purchase a property that includes a gas station and convenience store
D) A loan to purchase a duplex and rehabilitate it into a single-family dwelling
C) Within 30 days
· A customer with an excellent credit score submits a loan application. When does ECOA
require that the applicant be advised of the status of the application?
,A) Within one week
B) Within three days
C) Within 30 days
D) Within 90 days
D) His credit score
· Mr. Jones's loan application has been denied and he is provided with an Adverse Action
Notice as required by ECOA. Which of the following pieces of information would not be
included on the notice?
A) Information on the credit reporting agency if the adverse action is based on his credit
report
B) Reasons for the denial of credit
C) A description of credit he requested
D) His credit score
B) Their race
· According to fair lending laws, which of the following may loan applicants be asked to
disclose for MHDA data collection purposes?
A) Their religion
B) Their race
C) If they will stop working once they have children
D) If they plan to have more than one child
A) Mortgage broker fee
· Finance charges always include which of the following?
A) Mortgage broker fee
B) Title insurance charges
,C) Document preparation fees
D) Credit report fee
D) Escrow fees
· Which of the following is not included in calculating the APR?
A) Discount points
B) Underwriting fees
C) PMI
D) Escrow fees
C) Trigger terms
· The amount of the down payment, the amount of the finance charge, or the number of
payments needed are all examples of __ under TILA
A) Components of the finance charge
B) Components of the APR
C) Trigger terms
D) Prohibited disclosures
C) Saturday
· A borrower has gone to settlement for a cash-out refinance on Tuesday for his principal
residence. His rescission period is over at midnight on Friday. According to the provision
specified under federal law, what is the first possible day the loan could fund?
A) Tuesday
B) Friday
C) Saturday
D) Monday, the following week
, D) TILA
· HOEPA was enacted as a part of:
A) HMDA
B) ECOA
C) RESPA
D) TILA
C) Higher-priced mortgage loans
· Closed-end loans with rates that exceed the average prime offer rate, but are not high
enough to trigger protections under HOEPA, are known as:
A) Reverse mortgages
B) Subprime mortgage loans
C) Higher-priced mortgage loans
D) Qualified high-cost mortgages
C) The third business day after the Closing Disclosure is mailed
· XYZ Mortgage Company just mailed a Closing Disclosure to a consumer. The waiting
period prior to closing will begin:
A) On the date that the Closing Disclosure is mailed
B) The next business day after the Closing Disclosure is mailed
C) The third business day after the Closing Disclosure is mailed
D) The day on which the company received a completed, signed loan application
B) If the consumer requests a waiver due to a bona fide financial emergency
· The mandatory waiting period between issuance of disclosures and consummation may be
waived:
