MLO PRE TEST 9 QUESTIONS AND CORECT
DETAILED ANSWERS (VERIFIED ANSWERS)
| ALREADY SCORED A+ | NEW UPDATE 2025
As set forth by RESPA, at the time that a servicer creates an escrow account for a
borrower, the servicer may charge the borrower a cushion that can be equal or
less than ____ of the estimated total annual payments from the escrow account. -
ANSWER 1/6th
Borrowers have a right to receive a copy of the appraisal report promptly upon
completion of the appraisal or no later than ____ business days before
consummation for closed-end credit, whichever is earlier. - ANSWER Three
For an appraisal conducted on a residential property, which of the following would
be included as part of the gross living area? - ANSWER Bedroom's walk-in
closet
When a mortgage loan meets the criteria to be categorized as a higher-priced
mortgage loan and the price difference exceeds 20% of the original cost during the
first ______, creditors are required to obtain a second appraisal. - ANSWER Six
months
As defined by ECOA, this term refers to a refusal to grant credit in substantially the
amount or on substantially the terms requested in an application, unless the
creditor makes a counteroffer and the applicant uses or expressly accepts it. -
ANSWER Adverse action
, A licensed loan originator may credit an NMLS-approved two-hour online course
in ethics toward their continuing education renewal requirement: - ANSWER
once in the same calendar year in which the course is taken
Ed does not qualify for the mortgage program that he originally applied for. The
lender sends Ed a counteroffer notice. If Ed does not accept the counteroffer
within 90 days of receiving notification, the lender must issue which of the
following to Ed? - ANSWER Notice of Adverse Action
How many days after being provided with a Loan Estimate does a consumer have
to indicate an intent to proceed before the lender could legally adjust terms and
reissue? - ANSWER 10 business days
Reilly, who is five months pregnant, tries to rent an apartment in a six-unit
building with access to a shared swimming pool. The property manager rejects her
application, citing insurance liability concerns over having small children in the
building. Has this property manager violated the federal Fair Housing Act? -
ANSWER yes, discrimination based on familial status was a factor in the
manager's decision
Per the Equal Credit Opportunity Act (ECOA), it is unlawful and unethical to
discriminate in lending by refusing to grant a loan or altering the terms of a loan
because of a borrower's: - ANSWER membership in a protected class
Which of the following changed circumstances would NOT be considered a valid
reason to issue a revised Loan Estimate that can reset tolerances? - ANSWER
the MLO fails to include the amount of the lender's title policy.
DETAILED ANSWERS (VERIFIED ANSWERS)
| ALREADY SCORED A+ | NEW UPDATE 2025
As set forth by RESPA, at the time that a servicer creates an escrow account for a
borrower, the servicer may charge the borrower a cushion that can be equal or
less than ____ of the estimated total annual payments from the escrow account. -
ANSWER 1/6th
Borrowers have a right to receive a copy of the appraisal report promptly upon
completion of the appraisal or no later than ____ business days before
consummation for closed-end credit, whichever is earlier. - ANSWER Three
For an appraisal conducted on a residential property, which of the following would
be included as part of the gross living area? - ANSWER Bedroom's walk-in
closet
When a mortgage loan meets the criteria to be categorized as a higher-priced
mortgage loan and the price difference exceeds 20% of the original cost during the
first ______, creditors are required to obtain a second appraisal. - ANSWER Six
months
As defined by ECOA, this term refers to a refusal to grant credit in substantially the
amount or on substantially the terms requested in an application, unless the
creditor makes a counteroffer and the applicant uses or expressly accepts it. -
ANSWER Adverse action
, A licensed loan originator may credit an NMLS-approved two-hour online course
in ethics toward their continuing education renewal requirement: - ANSWER
once in the same calendar year in which the course is taken
Ed does not qualify for the mortgage program that he originally applied for. The
lender sends Ed a counteroffer notice. If Ed does not accept the counteroffer
within 90 days of receiving notification, the lender must issue which of the
following to Ed? - ANSWER Notice of Adverse Action
How many days after being provided with a Loan Estimate does a consumer have
to indicate an intent to proceed before the lender could legally adjust terms and
reissue? - ANSWER 10 business days
Reilly, who is five months pregnant, tries to rent an apartment in a six-unit
building with access to a shared swimming pool. The property manager rejects her
application, citing insurance liability concerns over having small children in the
building. Has this property manager violated the federal Fair Housing Act? -
ANSWER yes, discrimination based on familial status was a factor in the
manager's decision
Per the Equal Credit Opportunity Act (ECOA), it is unlawful and unethical to
discriminate in lending by refusing to grant a loan or altering the terms of a loan
because of a borrower's: - ANSWER membership in a protected class
Which of the following changed circumstances would NOT be considered a valid
reason to issue a revised Loan Estimate that can reset tolerances? - ANSWER
the MLO fails to include the amount of the lender's title policy.
