NMLS MLO 10 2017 ACTUAL EXAM QUESTIONS WITH ALL CORRECT ANSWERS

NMLS MLO 10 2017 ACTUAL EXAM QUESTIONS WITH ALL CORRECT ANSWERS When an interest rate adjustment would result in a monthly interest payment that exceeded the payment cap, which of the following would result if the borrower took advantage of the payment cap: - Answer-Negative amortization, Appraisers must report and consider any prior sales of a comparable sale for how many years prior to the date of the appraisal - Answer-1 year When completing the 1003 Form, the loan amount should be rounded to the nearest: - Answer-$50.00 When appraising special purpose properties, which of the following appraisal approaches would be likely to be most appropriate: - Answer-Cost Approach In addition to the loan origination fee listed on the Loan Estimate, what fees may a lender charge for making a loan: - Answer-The only two fees for making the loan are the loan origination fee and a fee for a specific interest rate ( yield spread premium or discount points). Other permissible fees relate to fees for services rather than for just making the loan. Appraisal fees, for instance, would be a fee for service. The Notice of Right to Appraisal Report disclosure form is now incorporated into the: - Answer-Loan Estimate Form. The prohibition against unfair, deceptive, or abusive acts and practices is found in: - Answer-The Dodd-Frank Act During the real estate boom up through 2006, Wall Street investment firms purchased a tremendous number of mortgages for inclusion in - Answer-C. Collateralized Debt Obligations; The Mortgage Acts and Practices (MAP) Rule is found in: - Answer-Regulation N Jerry obtained his mortgage loan originator license in 2009. In 2013, he allowed his license to lapse. In 2016 he wanted to regain his license. In order to become licensed again, Jerry would be required to complete what continuing education requirements under the Model State Law? - Answer-The MSL would require Jerry to complete the continuing education requirements only for the last year when he was previously licensed (2015) The Model State Law and the SAFE Act both require that several topics be covered for specific time amounts as part of the continuing education requirements. Which of the following is the actual allocation of these required topics? - Answer-3 hours on federal law and regulations, 2 hours on ethics (including fair lending), and 2 hours on nontraditional lending. The difference between the prelicense and continuing education requirements is that the ethics category is 3 hours for prelicense education and 2 hours for continuing education. A registered mortgage loan originator is an individual who acts as a mortgage loan originator and who is an employee of: - Answer-depository institutions or their subsidiaries If the CFPB determines that a state supervisory agency is not in compliance with the SAFE Act and Regulation H, what is the ultimate, highest penalty the CFPB could impose? - Answer-C. The CFPB could create its own state licensing system. Which of the following statements is true regarding the provisions of the E-SIGN Act is correct? - Answer-A. A consumer has the right to terminate consent to having electronic documents and electronic signatures, but the consequences could include termination of the relationship. B. A consumer has the right to consent to only receiving certain documents electronically and not others. C. The consumer must be notified of the hardware and software requirements for receiving electronic documents and providing electronic signatures. D. All of these statements are true. According to the FRB Statement on Subprime Lending, which of the following would be an example of "risk layering: - Answer-The FRB Statement on Subprime Lending defines the practice of "risk layering" as any type of sub prime loan that has two or more high-risk factors. Choice A is a no-doc loan, which means the income is not verified and is a 5/1 ARM, which means the interest rate is fixed for the first five years and then becomes adjustable. Both of these are significant risk factors and would therefore constitute risk layering. When a consumer refuses to answer the question about the applicant's race or ethnicity the MLO taking the application should answer the question based on - Answer-Either visual observation or the applicant's surname. Under the Home Mortgage Disclosure Act, the Loan Application Register is reported annually to the: - Answer-Federal Financial Institutions Examination Council (the FF!EC). RE SPA would apply to which of the following loans: - Answer-A loan to purchase a vacant lot on which a single-family residence will be built. A loan which has been designated as a Higher Priced Mortgage Loan under the Home Ownership Equity Protection Act is not permitted to be a(n) - Answer-C. Stated income loan; A junior mortgage which falls under the general definition of a qualified mortgage would be considered a higher-priced qualified mortgage if the APR of the qualified mortgage exceeded the APOR by: - Answer-3.5% The finance charge, as computed under the Truth in Lending Act, would include each of the following, EXCEPT: - Answer-Appraisal Fee: Quarterly mortgage call reports must be filed: - Answer-Within 45 days of the end of the calendar quarter A small mortgage lender that makes a loan to a homebuyer and immediately sells it to a larger lender is acting as a - Answer-Both a correspondent lender and a retail lender. A Registered or State Licensed Loan Originator is identified in the NMLS by his or her - Answer-Unique identifier If an adjustable rate mortgage is described as a "5 / 2 / 6" loan, the second number would indicate the maximum: - Answer-Interest rate adjustment after the initial adjustment The phrase "the gradual reduction of the principal balance of a loan on an installment basis" describes the term: - Answer-Amortization When Private Mortgage Insurance is obtained on a loan, the borrower must put up a down payment of at least - Answer-3% The initial interest rate on an adjustable rate loan is 2. 5% below its fully-indexed rate. This rate would most accurately be called a - Answer-Discount rate Which of the following statements is true of land contracts - Answer-The vendor transfers equitable title to the vendee Which of the following statements would be true of a "5/6" ARM - Answer-Rate would be fixed for the first 5 years and would adjust every 6 months thereafter