MLO Test Questions & Answers 100% correct 2024

Which of the following best describes a 2nd mortgage loan? (A) A conventional mortgage that is conforming (B) A conventional mortgage that is non-conforming (C) A conforming loan that is non-conventional (D) A non-conforming loan that is non-conventional correct answers(B) A conventional mortgage that is non-conforming WHY? Non-conforming because it is a Second Mortgage and that falls outside the Frannie Mae - Freddie Mac guidelines It is important to understand that a conforming loan can be a conventional loan but a conventional loan isn't always a conforming loan. Conventional loans can be fixed rate mortgages, adjustable rate mortgages, balloon mortgages, or hybrid loans. Almost any type of loan, if not issued, guaranteed or insured by a government entity, is considered a conventional loan. Which of the following best describes the fundamental reasons for the creation of the Home Mortgage Disclosure Act? (A) HMDA grew out of public concern over certain limitations on interest rates (B) HMDA grew out of public concern over credit shortages in certain urban neighborhoods (C) HMDA grew out of public concern over credit overages for affluent neighborhoods (D) HMDA grew out of public concern over accurate reporting to credit bureaus correct answers(B) HMDA grew out of public concern over credit shortages in certain urban neighborhoods WHY? what is the HMDA?