CMAA Quizzes and Tests Chapter 1-6 WITH Complete Questions
and Answers.
If you fail the National test 3 times, you must wait 6 months to retake the test. - ✔✔✔ True
The National test contains 120 questions, and 10 of those are unscored. The extra 10
questions are placebo questions. - ✔✔✔ False
5 are unscored
You will pay a non-refundable application fee; the cost of the fee varies by state. - ✔✔✔
True
Having your licensed revoked in another state is not a reason the state could deny your
license. - ✔✔✔ False
In addition to the 20-hour course, it is suggested to spend an extra 40-60 hours studying all
the content before taking the exam: - ✔✔✔ True
The Federal Reserve System was created in 1913. - ✔✔✔ True
Prior to the Federal government passing the SAFE Act in 2008, all states required MLOs to
be licensed. - ✔✔✔ False
A person who has worked at a bank giving loans could be considered a Mortgage Loan
Originator. - ✔✔✔ False
A loan processor and underwriter must be licensed if they are independent contractors. -
✔✔✔ True
Mortgage brokers usually do not fund their own loans. - ✔✔✔ True
The 3 secondary market players are, FNMA, FHLMC, and HMDA. - ✔✔✔ False
FNMA, GNMA, and Freddie
Regulatory authorities have the authority to investigate, impose penalties, provide
supervision, or a combination of all three. - ✔✔✔ True
To be a licensed MLO you must apply for a state, and national license. - ✔✔✔ False
Your pre-licensing education requires, 3 hours of federal law, 3 hours of ethics, 2 hours of
non-traditional mortgage products, and 12 hours of electives. - ✔✔✔ True
,The National Test Component with the Uniform State Content will test your knowledge on
the following five topics, federal laws and regulations, ethics, general mortgage
knowledge, MATH, and customer service essentials. - ✔✔✔ False
Once you have your licensed it must be renewed every year by December 31st or sooner. -
✔✔✔ True
If you forget to renew your license, there is a reinstatement period in some states, and you
can do late continuing education. - ✔✔✔ True
Filling out your MU4 is a one-time requirement and won't need to be updated again
throughout the course of your career. - ✔✔✔ False
If you want to be licensed in multiple states it is important to do discover each state, initial
licensing, fees, pre-licensing education, requirements, renewal fees, continuing education
requirements, and one other important thing about initial licensing and continuing
licensure in each state. - ✔✔✔ True
If you can't help a borrower, find a loan, charging a fee for best efforts isn't considered
prohibited conduct. - ✔✔✔ False
Every state has their own requirements related to disciplinary action. - ✔✔✔ True
If you have violated to comply with a cease and desist order the maximum penalty for each
act or omission is $25,000. - ✔✔✔ True
A mortgage lender is an individual who, for compensation or gain, or in the expectation of
compensation or gain takes residential mortgage loan applications, and offers or
negotiates terms of a residential mortgage loan. - ✔✔✔ False
Each state has a regulatory authority. - ✔✔✔ True
All of the following are examples of prohibited actions for mortgage professionals, except:
1. Receiving compensation for MLO activities
2. Charging a fee for best efforts
3. Advertising terms that aren't available
4. Making any false statements to the NMLS - ✔✔✔ 1.
What is the name of the act that created the NMLS?
1. Frank-Dodd Act
2. SAFE Act
3. RESPA
4. TILA - ✔✔✔ 2.
In which of the following situations would an MLO license be required?
, 1. When an individual performs real estate brokerage activities
2. When an individual is solely involved in the extension of credit for time shares
3. When an individual is engaged solely as a loan processor or underwriter
4. When an individual offers or negotiates the terms of a residential mortgage loan - ✔✔✔
4.
The Uniform State Content Test includes all of the following topics, except:
1. State-specific content
2. Ethics
3. General mortgage knowledge
4. Federal laws and regulations - ✔✔✔ 1.
All of the following are actions the Commissioner can take, except:
1. Denying or revoking licenses
2. Imposing fines or penalties
3. Investigating consumer complaints
4. Issuing a unique identifier - ✔✔✔ 4.
The two most common types of mortgages are fixed rate and adjustable rate mortgages. -
✔✔✔ True
An adjustable rate mortgage (ARM) is one where the interest rate periodically changes
over the life of the loan. - ✔✔✔ True
The three types of interest rate caps on ARMs are called the first adjustment, subsequent
adjustment, and the last adjustment. - ✔✔✔ False
First adjustment cap, subsequent adjustment cap, and lifetime adjustment cap
The first number in an ARM represents the amount the interest rate can increase or
decrease over the life of the loan. - ✔✔✔ False
Just for the first adjustment
Hybrid ARMs are a blend of fixed rate and adjustable loans. - ✔✔✔ True
The periodic interest rate is the annual interest rate divided by the number of compounding
periods. - ✔✔✔ True
Construction loans are usually 65% loan to value (LTV) so borrowers will need to have a
35% down payment. - ✔✔✔ False
Bridge loans are also called Cross-Collateral loans. - ✔✔✔ True
Graduated payment mortgages (GPM) have a high initial payment that gradually lowers
over time. - ✔✔✔ False
and Answers.
If you fail the National test 3 times, you must wait 6 months to retake the test. - ✔✔✔ True
The National test contains 120 questions, and 10 of those are unscored. The extra 10
questions are placebo questions. - ✔✔✔ False
5 are unscored
You will pay a non-refundable application fee; the cost of the fee varies by state. - ✔✔✔
True
Having your licensed revoked in another state is not a reason the state could deny your
license. - ✔✔✔ False
In addition to the 20-hour course, it is suggested to spend an extra 40-60 hours studying all
the content before taking the exam: - ✔✔✔ True
The Federal Reserve System was created in 1913. - ✔✔✔ True
Prior to the Federal government passing the SAFE Act in 2008, all states required MLOs to
be licensed. - ✔✔✔ False
A person who has worked at a bank giving loans could be considered a Mortgage Loan
Originator. - ✔✔✔ False
A loan processor and underwriter must be licensed if they are independent contractors. -
✔✔✔ True
Mortgage brokers usually do not fund their own loans. - ✔✔✔ True
The 3 secondary market players are, FNMA, FHLMC, and HMDA. - ✔✔✔ False
FNMA, GNMA, and Freddie
Regulatory authorities have the authority to investigate, impose penalties, provide
supervision, or a combination of all three. - ✔✔✔ True
To be a licensed MLO you must apply for a state, and national license. - ✔✔✔ False
Your pre-licensing education requires, 3 hours of federal law, 3 hours of ethics, 2 hours of
non-traditional mortgage products, and 12 hours of electives. - ✔✔✔ True
,The National Test Component with the Uniform State Content will test your knowledge on
the following five topics, federal laws and regulations, ethics, general mortgage
knowledge, MATH, and customer service essentials. - ✔✔✔ False
Once you have your licensed it must be renewed every year by December 31st or sooner. -
✔✔✔ True
If you forget to renew your license, there is a reinstatement period in some states, and you
can do late continuing education. - ✔✔✔ True
Filling out your MU4 is a one-time requirement and won't need to be updated again
throughout the course of your career. - ✔✔✔ False
If you want to be licensed in multiple states it is important to do discover each state, initial
licensing, fees, pre-licensing education, requirements, renewal fees, continuing education
requirements, and one other important thing about initial licensing and continuing
licensure in each state. - ✔✔✔ True
If you can't help a borrower, find a loan, charging a fee for best efforts isn't considered
prohibited conduct. - ✔✔✔ False
Every state has their own requirements related to disciplinary action. - ✔✔✔ True
If you have violated to comply with a cease and desist order the maximum penalty for each
act or omission is $25,000. - ✔✔✔ True
A mortgage lender is an individual who, for compensation or gain, or in the expectation of
compensation or gain takes residential mortgage loan applications, and offers or
negotiates terms of a residential mortgage loan. - ✔✔✔ False
Each state has a regulatory authority. - ✔✔✔ True
All of the following are examples of prohibited actions for mortgage professionals, except:
1. Receiving compensation for MLO activities
2. Charging a fee for best efforts
3. Advertising terms that aren't available
4. Making any false statements to the NMLS - ✔✔✔ 1.
What is the name of the act that created the NMLS?
1. Frank-Dodd Act
2. SAFE Act
3. RESPA
4. TILA - ✔✔✔ 2.
In which of the following situations would an MLO license be required?
, 1. When an individual performs real estate brokerage activities
2. When an individual is solely involved in the extension of credit for time shares
3. When an individual is engaged solely as a loan processor or underwriter
4. When an individual offers or negotiates the terms of a residential mortgage loan - ✔✔✔
4.
The Uniform State Content Test includes all of the following topics, except:
1. State-specific content
2. Ethics
3. General mortgage knowledge
4. Federal laws and regulations - ✔✔✔ 1.
All of the following are actions the Commissioner can take, except:
1. Denying or revoking licenses
2. Imposing fines or penalties
3. Investigating consumer complaints
4. Issuing a unique identifier - ✔✔✔ 4.
The two most common types of mortgages are fixed rate and adjustable rate mortgages. -
✔✔✔ True
An adjustable rate mortgage (ARM) is one where the interest rate periodically changes
over the life of the loan. - ✔✔✔ True
The three types of interest rate caps on ARMs are called the first adjustment, subsequent
adjustment, and the last adjustment. - ✔✔✔ False
First adjustment cap, subsequent adjustment cap, and lifetime adjustment cap
The first number in an ARM represents the amount the interest rate can increase or
decrease over the life of the loan. - ✔✔✔ False
Just for the first adjustment
Hybrid ARMs are a blend of fixed rate and adjustable loans. - ✔✔✔ True
The periodic interest rate is the annual interest rate divided by the number of compounding
periods. - ✔✔✔ True
Construction loans are usually 65% loan to value (LTV) so borrowers will need to have a
35% down payment. - ✔✔✔ False
Bridge loans are also called Cross-Collateral loans. - ✔✔✔ True
Graduated payment mortgages (GPM) have a high initial payment that gradually lowers
over time. - ✔✔✔ False
