NMLS MLO Exam Questions and
Answers|Latest Update
What document specifies that a property is being used as security in the event of nonpayment of
a debt? 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? TIP (Total Interest Percentage)
COFI comes from what region in the country? The 11th Federal Home Loan Bank
(Arizona, California, and Nevada)
What disclosure is required to be provided to the applicant within 3 days of application under reg
x? Mortgage Loan Servicing Disclosure
Verification of cash used in a closing is documented by: last 2-3 months bank statements
The finance charge is the total cost of: the loan in dollars, including points and mortgage
insurance
,What IRS forms would you requrest from a borrower who is 40% shareholder in a C-
Corporation? Form 1120
Impersonating someone else in an attempt to obtain their personal financial information is called:
Pretexting
What type of funding occurs when a lender obtains funds from a line of credit at a commercial
bank? Warehouse funding
Late fee for FHA and VA loans 4%
Ginnie Mae _____ loans Guarantees
A mortgage on personal property is: Chattel mortgage
Who can transfer title insurance policy? Mortgagee
,What document is NOT recorded? The Note
The borrower's IOU is: The Note
Escheat When a property owner dies without a will and the state is unable to locate any
heirs, so the state claims the property.
Disintermediation The withdrawal of funds out of savings accounts and into stocks and
bonds
Eminent Domain The condemnation of private property for public good
Warranty Deed The document conveying title from one party to another and guaranteeing
that the title is good
Another name for an installment contract Contract for Deed
, An outstanding claim on a property that limits the ability to sell the property is a Title
Defect
A mortgage note that does NOT limit recovery solely from the property is called a: Note
Endorsed with Recourse
Are investment properties exempt from RESPA's requirements? Yes
Tolerance amount (%) for an Appraisal Fee? 0%
Are FHA loans Partially Guaranteed or 100% insured? 100% insured
Mortgagee title insurance policy is not _____ Optional
Which parties sign the deed? Grantor and 2 witnesses
When the mortgagor and mortgagee title insurance policies are issued at the same time, this is
known as: Simultaneous issue
Answers|Latest Update
What document specifies that a property is being used as security in the event of nonpayment of
a debt? 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? TIP (Total Interest Percentage)
COFI comes from what region in the country? The 11th Federal Home Loan Bank
(Arizona, California, and Nevada)
What disclosure is required to be provided to the applicant within 3 days of application under reg
x? Mortgage Loan Servicing Disclosure
Verification of cash used in a closing is documented by: last 2-3 months bank statements
The finance charge is the total cost of: the loan in dollars, including points and mortgage
insurance
,What IRS forms would you requrest from a borrower who is 40% shareholder in a C-
Corporation? Form 1120
Impersonating someone else in an attempt to obtain their personal financial information is called:
Pretexting
What type of funding occurs when a lender obtains funds from a line of credit at a commercial
bank? Warehouse funding
Late fee for FHA and VA loans 4%
Ginnie Mae _____ loans Guarantees
A mortgage on personal property is: Chattel mortgage
Who can transfer title insurance policy? Mortgagee
,What document is NOT recorded? The Note
The borrower's IOU is: The Note
Escheat When a property owner dies without a will and the state is unable to locate any
heirs, so the state claims the property.
Disintermediation The withdrawal of funds out of savings accounts and into stocks and
bonds
Eminent Domain The condemnation of private property for public good
Warranty Deed The document conveying title from one party to another and guaranteeing
that the title is good
Another name for an installment contract Contract for Deed
, An outstanding claim on a property that limits the ability to sell the property is a Title
Defect
A mortgage note that does NOT limit recovery solely from the property is called a: Note
Endorsed with Recourse
Are investment properties exempt from RESPA's requirements? Yes
Tolerance amount (%) for an Appraisal Fee? 0%
Are FHA loans Partially Guaranteed or 100% insured? 100% insured
Mortgagee title insurance policy is not _____ Optional
Which parties sign the deed? Grantor and 2 witnesses
When the mortgagor and mortgagee title insurance policies are issued at the same time, this is
known as: Simultaneous issue
