MLO TEST PREP| 115 questions| with complete solutions

Gramm, Leach, Bliley and the Safeguard Rules. Correct Answer: All of the borrower's information must be kept Confidential under Gramm, Leach, Bliley and the Safeguard Rules. You do not have the right to change documentation to assist the borrower in meeting program guidelines. Correct Answer: . Redlining Correct Answer: A process by which banks draw lines on a map and refuse to lend money to purchase or improve property within the boundaries. cannot refuse to take an application no matter the location of the property. Reverse Redlining Correct Answer: The predatory lending practice of targeting certain areas populated by subprime borrowers, or other borrowers with inadequate experience or ability to understand loan terms and conditions, and engaging those borrowers in unlawful loan transactions. going to an area, because of risk factors or the area itself, you charge more for the interest rate and costs Steering Correct Answer: you cannot steer the borrower to live in a certain area or force them to take a specific program Marketing Info Correct Answer: ▪No referrals or kickbacks can be paid for any reason. ▪All joint marketing is to be split 50 - 50. ▪Referral is anything of value being given or received from a third party company, Realtor or Builder. ▪Kickbacks are not allowed in receiving or paying on any transaction. Appraiser Info Correct Answer: -If an appraiser is connected to anyone in the loan, the appraiser must be replaced. -You cannot talk or contact the appraiser to influence value, threaten payment or cut them off of any new business. -An appraiser has to excuse themselves from an assignment if they are connected in any way to anyone on the transaction. Fraudulent info? Correct Answer: It is your responsibility to report to your Compliance Officer any loan files that you feel the borrower is providing information that is fraudulent. Illegal, DO NOT DO Correct Answer: -You can be penalized or fired if you doctor any documents for the borrower