MLO MOCK EXAM QUESTIONS | TESTED AND PROVEN ANSWERS | LATEST UPDATE 2024/2025 100% (GRADE A+)

MLO MOCK EXAM QUESTIONS | TESTED AND
PROVEN ANSWERS | LATEST UPDATE 2024/2025
100% (GRADE A+)
1. A mortgage loan originator must provide the Loan Estimate to the consumer:


(a) No later than the third business day after the date of the consumer's application.


(b) No later than the three-business day before consummation of the transaction.


(c) No later than the third business day after the creditor receives the consumer's application for a

mortgage loan.


(d) At the first substantial meeting with the consumer.


Ans>> (c) No later than the third business day after the creditor receives the consumer's

application for a mortgage loan.




2. The Gramm-Leach-Bliley Act requires financial institutions to provide consumers with a notice of

their information-sharing policies. Which of the following is not an acceptable means of providing

the required privacy notice?


(a) Mail


(b) Posting notice in on an office wall


(c) Email


(d) Fax

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,Ans>> (b) Posting notice in on an office wall




3. After a loan closing, funds are disbursed. When are the funds disbursed for an owner-occupied

residential refinance?


(a) After the three business-day rescission period.


(b) At the time of the loan closing.


(c) Five business days after the closing.


(d) After the three-day rescission period.


Ans>> (a) After the three business-day rescission period.




4. Violations of Section 8's anti-kickback, referral fees, and unearned fees provisions of RESPA

are subject to criminal and civil penalties. In a criminal case, a person who violates Section 8 may

be fined up and imprisoned:


(a) Up to $5,000 and up to 1 year in prison.


(b) Up to $10,000 and up to 1 year in prison.


(c) Up to $10,000 and up to 2-99 years in prison.


(d) Up to $1,000,000 and up to 30 years in prison.


Ans>> (b) Up to $10,000 and up to 1 year in prison.

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,5. Which of the following allows a prepayment penalty during the first three years after the loan

is consummated?


(a) Qualified Mortgage Loan


(b) FHA Mortgage Loan


(c) Higher-Priced Mortgage Loan


(d) Home Ownership and Equity Protection Act Loan


Ans>> (d) Home Ownership and Equity Protection Act Loan




6. The URLA divides the application into five different forms. Which of the following is not one of

the five forms that make up the URLA?


(a) Uniform Residential Loan Application-Additional Borrower


(b) Uniform Residential Loan Application-Continuation Sheet


(c) Uniform Residential Loan Application-Information for Government Monitoring Purposes


(d) Uniform Residential Loan Application-Unmarried Addendum


Ans>> (c) Uniform Residential Loan Application-Information for Government Monitoring

Purposes




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, 7. Which is NOT a purpose for the Mortgage Servicing Disclosure Statement?


(a) That the consumer will be given advanced notice before a transfer occurs


(b) To inform the consumer that they are applying for a mortgage loan covered by RESPA


(c) To inform the consumer of the likelihood that the mortgage could be sold in the secondary

market


(d) To inform the consumer of the likelihood that the servicing of the mortgage will be sold,

transferred, or assigned


Ans>> (c) To inform the consumer of the likelihood that the mortgage could be sold in the

secondary market




8. A Latina applies to a mortgage company for a home loan. She is refused based on the

neighborhood's reputation for a high number of foreclosures. This is an example of what illegal

practice?


(a) Blockbusting


(b) Puffing


(c) Redlining


(d) Steering


Ans>> (c) Redlining


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