MLO PRACTICE EXAM 3 QUESTIONS AND
CORECT DETAILED ANSWERS (VERIFIED
ANSWERS) | ALREADY SCORED A+ | NEW
UPDATE 2025
Discount points would only be used if the interest rate offered to the borrower
were which of the following?
The prime rate
Below par
Above par
Par or anything above par - ANSWER Par or anything above par
Is a referral fee ever allowed?
Only to a lawyer that refers a loan
Only to a disclosed provider
No
No, unless disclosed on the HUD and paid for by borrower - ANSWER No
After the crisis of the Great Recession according to FHA underwriting when can a
borrower repurchase again after a foreclosure?
5 years from the deed transfer date
2 years from the deed transfer date
,7 years from the deed transfer date
3 years from the deed transfer date - ANSWER 3 years from the deed transfer
date
Surrender of an MLO license does not affect the MLO's:
Civil or criminal liability for acts committed prior to the surrender.
Ability to originate loans as an employee for a licensed lender.
Ability of taking loan applications as an independent contractor.
Ability to process loans as a contract processor. - ANSWER Civil or criminal
liability for acts committed prior to the surrender.
What is the appraiser most interested in when determining the value of an
income property?
Location
Projections of rent and expenses
Cash flow
Interest rates - ANSWER Projections of rent and expenses
Regulation B is also known as:
HMDA
ECOA
TILA
,RESPA - ANSWER ECOA
After the crisis of the Great Recession according to VA underwriting when can a
borrower repurchase again after a Chapter 13 bankruptcy?
1 year
4 years
7 years
3 years - ANSWER 1 year
In order to meet the pre-licensing education requirement, a person shall complete
at least 20 hours of approved education. Which of the following is NOT included in
the minimum educational requirements?
2 hours of training related to predatory lending laws
3 hours of ethics training
2 hours of training related to nontraditional mortgage products
3 hours of Federal law and regulations - ANSWER 2 hours of training related to
predatory lending laws
After the crisis of the Great Recession according to VA underwriting when can a
borrower repurchase again after a Chapter 7 bankruptcy?
5 years from the discharge date
7 years from the discharge date
3 years from the discharge date
, 2 years from the discharge date - ANSWER 2 years from the discharge date
After the crisis of the Great Recession according to FHA Standard underwriting
when can a borrower repurchase again after a Chapter 13 bankruptcy?
1 year from the credit discharge date
3 years from the credit discharge date
5 years from the credit discharge date
7 years from the credit discharge date - ANSWER 1 year from the credit
discharge date
What is HOEPA also known as?
Sections 30 & 32
Sections 33 & 35
Sections 34 & 36
Sections 32 & 35 - ANSWER Sections 32 & 35
The NMLS will not charge fees for which of the following?
Renewal Fee
A processing fee for ACH payments
Credit Report Fee
Criminal Background Fee - ANSWER A processing fee for ACH payments
CORECT DETAILED ANSWERS (VERIFIED
ANSWERS) | ALREADY SCORED A+ | NEW
UPDATE 2025
Discount points would only be used if the interest rate offered to the borrower
were which of the following?
The prime rate
Below par
Above par
Par or anything above par - ANSWER Par or anything above par
Is a referral fee ever allowed?
Only to a lawyer that refers a loan
Only to a disclosed provider
No
No, unless disclosed on the HUD and paid for by borrower - ANSWER No
After the crisis of the Great Recession according to FHA underwriting when can a
borrower repurchase again after a foreclosure?
5 years from the deed transfer date
2 years from the deed transfer date
,7 years from the deed transfer date
3 years from the deed transfer date - ANSWER 3 years from the deed transfer
date
Surrender of an MLO license does not affect the MLO's:
Civil or criminal liability for acts committed prior to the surrender.
Ability to originate loans as an employee for a licensed lender.
Ability of taking loan applications as an independent contractor.
Ability to process loans as a contract processor. - ANSWER Civil or criminal
liability for acts committed prior to the surrender.
What is the appraiser most interested in when determining the value of an
income property?
Location
Projections of rent and expenses
Cash flow
Interest rates - ANSWER Projections of rent and expenses
Regulation B is also known as:
HMDA
ECOA
TILA
,RESPA - ANSWER ECOA
After the crisis of the Great Recession according to VA underwriting when can a
borrower repurchase again after a Chapter 13 bankruptcy?
1 year
4 years
7 years
3 years - ANSWER 1 year
In order to meet the pre-licensing education requirement, a person shall complete
at least 20 hours of approved education. Which of the following is NOT included in
the minimum educational requirements?
2 hours of training related to predatory lending laws
3 hours of ethics training
2 hours of training related to nontraditional mortgage products
3 hours of Federal law and regulations - ANSWER 2 hours of training related to
predatory lending laws
After the crisis of the Great Recession according to VA underwriting when can a
borrower repurchase again after a Chapter 7 bankruptcy?
5 years from the discharge date
7 years from the discharge date
3 years from the discharge date
, 2 years from the discharge date - ANSWER 2 years from the discharge date
After the crisis of the Great Recession according to FHA Standard underwriting
when can a borrower repurchase again after a Chapter 13 bankruptcy?
1 year from the credit discharge date
3 years from the credit discharge date
5 years from the credit discharge date
7 years from the credit discharge date - ANSWER 1 year from the credit
discharge date
What is HOEPA also known as?
Sections 30 & 32
Sections 33 & 35
Sections 34 & 36
Sections 32 & 35 - ANSWER Sections 32 & 35
The NMLS will not charge fees for which of the following?
Renewal Fee
A processing fee for ACH payments
Credit Report Fee
Criminal Background Fee - ANSWER A processing fee for ACH payments
