MLO Test - Study Material | 200+ Questions with 100% Correct Answers | Verified

The federal Truth in Lending Act - ANS - regulates advertising with references to mortgage interest rates. Which would LEAST LIKELY be a changed circumstance that would trigger the need to provide a new GFE to a borrower? - ANS - The mortgage loan originator learns that the alimony the borrower receives (which was not included in her income analysis) will cease after she is remarried next month. What fact about a borrower may an underwriter take into consideration when approving a mortgage loan application? - ANS - likelihood of continued income ABC Bank receives a change of address request from a consumer. What requires the bank to follow up with him to verify the validity of the request? - ANS - Red Flag Rules In a purchase transaction closing, hypothecation occurs. This is described as - ANS - Using property as collateral without surrendering use or possession of it. Each of these loans would be excluded under the definition of a higher-priced loan EXCEPT - ANS - a purchase loan. If a mortgage loan originator or real estate agent suggests to a client that he move to a particular area to reside in a community that he will "fit into," that MLO or real estate agent would be guilty of - ANS - Steering.