MLO SAFE NMLS TIPS ANSWERS AND QUESTIONS
SET A+
✔✔A telemarketer who calls a consumer in violation of the Do Not Call registry listing
could be fined $_______________ per incident. - ✔✔$16,000
✔✔The buyer in a land contract is known as the ____________. - ✔✔Vendee
✔✔Who enforces the "Do Not Call" registry? - ✔✔FTC, Federal Trade Commission,
FCC Federal Communication Commission, State Law Enforcement Officials.
✔✔A ______________ buyer is a person who gets paid for the use of their name and
credit history in (a) loan transaction(s) usually for fraudulent persons. - ✔✔Straw Buyer
✔✔What is the name of the Federal act that deals with financial institutions having a
continuing obligation to help meet the credit needs of the local communities in which
they operate? - ✔✔The Community Reinvestment Act
✔✔The difference between the market value of a property and the amount of
outstanding liens relative to that property is called ______________________.. -
✔✔Equity
✔✔Per ECOA lenders must keep applications and certain other documents available for
up to __________ months. - ✔✔25 months
✔✔At what point can a consumer request a cancellation of the PMI premiums? -
✔✔When the LTV (Loan to Value) reaches 80% per the original amortization schedule.
Not calculated by a re-appraisal of the property.
✔✔A veteran discharged from active duty needs two documents to obtain a VA
guaranteed loan. One document is the DD214. The other document is the
___________________. - ✔✔COE, Certificate of Eligibility
, ✔✔Per ECOA a lender must notify a borrower of action taken within 30 days of the
application. Under what circumstances would the co-borrower have to be notified as
well? - ✔✔One notice to the borrower is required unless there is a co-borrower and the
denial is because of a credit report.
✔✔A Balloon payment is disclosed on the document evidencing the debt and the
security instrument known as the __________________ and
_____________________. - ✔✔Note and mortgage
✔✔The applicant confides that his recent marriage may lead to a change in
employment. May this information be used to deny the loan? - ✔✔No, income and
familial status (having one or more individuals under 18 years of age in the household)
may never be considered in a credit application.
✔✔Regarding direct or indirect compensation to a mortgage loan originator, the Dodd-
Frank Act prohibits compensation that varies based on all but one of the terms of a loan.
MLO compensation can be based on ____________________. - ✔✔The amount of
principal
✔✔Per GLBA, institutions should design and maintain _____________. -
✔✔Safeguards for consumer information.
✔✔Until a particular property is identified on a "loan application" the "application" could
be considered a __________. - ✔✔Pre-Qualfication
✔✔Who is the beneficiary of an FHA insured loan? - ✔✔The Lender
✔✔A loan that does not meet the FNMA/FHLMC standards is considered a
__________________ loan. - ✔✔Non-conforming loan
✔✔__________________ requires that a borrower is notified ___________ days prior
to the effective date of the loan servicing transfer. - ✔✔RESPA (Real Estate Settlement
Procedures Act), 15 days prior
✔✔HOEPA is concerned with the ___________ of a ______________ residence with a
_______________ loan. - ✔✔Refinance, primary, high cost
✔✔On an ARM loan, a lenders cost plus profit would be included in the
________________. - ✔✔Margin
SET A+
✔✔A telemarketer who calls a consumer in violation of the Do Not Call registry listing
could be fined $_______________ per incident. - ✔✔$16,000
✔✔The buyer in a land contract is known as the ____________. - ✔✔Vendee
✔✔Who enforces the "Do Not Call" registry? - ✔✔FTC, Federal Trade Commission,
FCC Federal Communication Commission, State Law Enforcement Officials.
✔✔A ______________ buyer is a person who gets paid for the use of their name and
credit history in (a) loan transaction(s) usually for fraudulent persons. - ✔✔Straw Buyer
✔✔What is the name of the Federal act that deals with financial institutions having a
continuing obligation to help meet the credit needs of the local communities in which
they operate? - ✔✔The Community Reinvestment Act
✔✔The difference between the market value of a property and the amount of
outstanding liens relative to that property is called ______________________.. -
✔✔Equity
✔✔Per ECOA lenders must keep applications and certain other documents available for
up to __________ months. - ✔✔25 months
✔✔At what point can a consumer request a cancellation of the PMI premiums? -
✔✔When the LTV (Loan to Value) reaches 80% per the original amortization schedule.
Not calculated by a re-appraisal of the property.
✔✔A veteran discharged from active duty needs two documents to obtain a VA
guaranteed loan. One document is the DD214. The other document is the
___________________. - ✔✔COE, Certificate of Eligibility
, ✔✔Per ECOA a lender must notify a borrower of action taken within 30 days of the
application. Under what circumstances would the co-borrower have to be notified as
well? - ✔✔One notice to the borrower is required unless there is a co-borrower and the
denial is because of a credit report.
✔✔A Balloon payment is disclosed on the document evidencing the debt and the
security instrument known as the __________________ and
_____________________. - ✔✔Note and mortgage
✔✔The applicant confides that his recent marriage may lead to a change in
employment. May this information be used to deny the loan? - ✔✔No, income and
familial status (having one or more individuals under 18 years of age in the household)
may never be considered in a credit application.
✔✔Regarding direct or indirect compensation to a mortgage loan originator, the Dodd-
Frank Act prohibits compensation that varies based on all but one of the terms of a loan.
MLO compensation can be based on ____________________. - ✔✔The amount of
principal
✔✔Per GLBA, institutions should design and maintain _____________. -
✔✔Safeguards for consumer information.
✔✔Until a particular property is identified on a "loan application" the "application" could
be considered a __________. - ✔✔Pre-Qualfication
✔✔Who is the beneficiary of an FHA insured loan? - ✔✔The Lender
✔✔A loan that does not meet the FNMA/FHLMC standards is considered a
__________________ loan. - ✔✔Non-conforming loan
✔✔__________________ requires that a borrower is notified ___________ days prior
to the effective date of the loan servicing transfer. - ✔✔RESPA (Real Estate Settlement
Procedures Act), 15 days prior
✔✔HOEPA is concerned with the ___________ of a ______________ residence with a
_______________ loan. - ✔✔Refinance, primary, high cost
✔✔On an ARM loan, a lenders cost plus profit would be included in the
________________. - ✔✔Margin
