SAFE MLO EXAM 225 ACTUAL TEST
QUESTIONS AND SOLUTIONS GRADED A+
PREMIUM RESOURCE
●● A Realtor offers a loan originator $100 for every referral that turns
into a sale. Who violated RESPA?
a) The Realtor
b) The loan originator
c) Neither the Realtor nor the loan originator
d) Both the Realtor and the loan originator
Answer: The Realtor
●● Prior to closing on a HOEPA loan, the borrower must:
a) Secure homeownership counseling from a HUD-approved counseling
agency
b) Be informed about their right to receive homeownership counseling
along with a list of counseling agencies from their lender no later than
three business days prior to closing
c) Be advised of their right to seek the advice of legal counsel
d) Be offered a different loan that does not exceed HOEPA thresholds
Answer: a) Secure homeownership counseling from a HUD-approved
counseling agency
,●● What verbiage must appear on the special HOEPA disclosure issued
to the customer no later than three business days prior to closing?
a) You have the right to consult with an attorney at any time prior to or at
closing
b) You are not required to complete this agreement merely because you
have received these disclosures or have signed a loan application
c) Your right to rescind will be extended to three years
d) You are receiving a loan with a higher than market interest rate
Answer: b) You are not required to complete this agreement merely
because you have received these disclosures or have signed a loan
application
●● When must a Loan Estimate be issued to an applicant in accordance
with TRID?
a) Within three general business days from the day of application
b) Within three precise business days from the day of application
c) Within three precise business days of closing
d) Within three general business days of closing
Answer: a) Within three general business days from the day of
application
,●● A loan may not close for:
a) Three precise business days from the date that the Loan Estimate is
issued
b) Seven general business days from the date that the Loan Estimate is
issued
c) Seven precise business days from the date that the Loan Estimate is
issued
d) There is no restriction on when a loan may close after the issuance of
a Loan Estimate
Answer: c) Seven precise business days from the date that the Loan
Estimate is issued
●● Which of the following is not a valid reason for changing fees once a
Loan Estimate has been issued?
a) The loan originator originally miscalculated the transfer tax quoted on
the Loan Estimate
b) A valid change of circumstance occurs
c) The customer requests to increase the loan amount for which she is
applying
d) The customer chooses a different property in a county where the
recordation tax is higher than that of the original property
Answer: a) The loan originator originally miscalculated the transfer tax
quoted on the Loan Estimate
, ●● By when must a revised Loan Estimate be reissued in the presence of
a valid change of circumstance?
a) As long as it is reissued prior to closing, there is no specific timeframe
mandating when a revised Loan Estimate must be issued
b) Revised Loan Estimates are never issued because the Closing
Disclosure ultimately discloses the true costs
c) Within three general business days from the closing date
d) Within three general business days from the date of the valid change
of circumstance
Answer: d) Within three general business days from the date of the valid
change of circumstance
●● Which of the following is considered to be a valid change of
circumstance?
a) When an extraordinary event beyond anyone's control, an earthquake
occurs, when the customer wishes to add another borrower, or when the
title company ceases to operate during the transaction
b) When the loan originator errs on a disclosed fee not containing a zero-
tolerance change cap and needs to correct the error
c) When the customer withdraws his application
d) When the mortgage broker ultimately chooses a different lender than
the one to which it originally intended to broker the loan
QUESTIONS AND SOLUTIONS GRADED A+
PREMIUM RESOURCE
●● A Realtor offers a loan originator $100 for every referral that turns
into a sale. Who violated RESPA?
a) The Realtor
b) The loan originator
c) Neither the Realtor nor the loan originator
d) Both the Realtor and the loan originator
Answer: The Realtor
●● Prior to closing on a HOEPA loan, the borrower must:
a) Secure homeownership counseling from a HUD-approved counseling
agency
b) Be informed about their right to receive homeownership counseling
along with a list of counseling agencies from their lender no later than
three business days prior to closing
c) Be advised of their right to seek the advice of legal counsel
d) Be offered a different loan that does not exceed HOEPA thresholds
Answer: a) Secure homeownership counseling from a HUD-approved
counseling agency
,●● What verbiage must appear on the special HOEPA disclosure issued
to the customer no later than three business days prior to closing?
a) You have the right to consult with an attorney at any time prior to or at
closing
b) You are not required to complete this agreement merely because you
have received these disclosures or have signed a loan application
c) Your right to rescind will be extended to three years
d) You are receiving a loan with a higher than market interest rate
Answer: b) You are not required to complete this agreement merely
because you have received these disclosures or have signed a loan
application
●● When must a Loan Estimate be issued to an applicant in accordance
with TRID?
a) Within three general business days from the day of application
b) Within three precise business days from the day of application
c) Within three precise business days of closing
d) Within three general business days of closing
Answer: a) Within three general business days from the day of
application
,●● A loan may not close for:
a) Three precise business days from the date that the Loan Estimate is
issued
b) Seven general business days from the date that the Loan Estimate is
issued
c) Seven precise business days from the date that the Loan Estimate is
issued
d) There is no restriction on when a loan may close after the issuance of
a Loan Estimate
Answer: c) Seven precise business days from the date that the Loan
Estimate is issued
●● Which of the following is not a valid reason for changing fees once a
Loan Estimate has been issued?
a) The loan originator originally miscalculated the transfer tax quoted on
the Loan Estimate
b) A valid change of circumstance occurs
c) The customer requests to increase the loan amount for which she is
applying
d) The customer chooses a different property in a county where the
recordation tax is higher than that of the original property
Answer: a) The loan originator originally miscalculated the transfer tax
quoted on the Loan Estimate
, ●● By when must a revised Loan Estimate be reissued in the presence of
a valid change of circumstance?
a) As long as it is reissued prior to closing, there is no specific timeframe
mandating when a revised Loan Estimate must be issued
b) Revised Loan Estimates are never issued because the Closing
Disclosure ultimately discloses the true costs
c) Within three general business days from the closing date
d) Within three general business days from the date of the valid change
of circumstance
Answer: d) Within three general business days from the date of the valid
change of circumstance
●● Which of the following is considered to be a valid change of
circumstance?
a) When an extraordinary event beyond anyone's control, an earthquake
occurs, when the customer wishes to add another borrower, or when the
title company ceases to operate during the transaction
b) When the loan originator errs on a disclosed fee not containing a zero-
tolerance change cap and needs to correct the error
c) When the customer withdraws his application
d) When the mortgage broker ultimately chooses a different lender than
the one to which it originally intended to broker the loan
