MLO National Exam Questions And Answers Rated A+ New Update Assured Satisfaction

According to the FCRA, when must a credit agency give a consumer a free copy of his credit report? A.)If the loan application is denied because of information in the report B.) Whenever he request it - A.)If the loan application is denied because of information in the report A Consumer comes into your office to apply for a loan. The Home Mortgage Disclosure Act requires you to collect information about her race. If she does not wish to provide information for that section of the application, what do you do? A.)Skip it all together B.)Have her check the box indicating she does not wish to furnish the information, then answer it according to visual observation when she leaves - B.)Have her check the box indicating she does not wish to furnish the information, then answer it according to visual observation when she leaves. After the collection of statistical data, lenders are required to forward that information to the regulator by what date under the Home Mortgage Disclosure act? - March 1st. ABC Bank Receives a change of address request from consumer Jane. What requires the bank to follow up with Jane to Verify the validity of the request? - Red Flag Rules According to the Fair Credit Report Act, which situation does not entitle someone to a free copy of his credit report? - An Applicant was refused credit due to insufficient income. Bob meets a loan origination at XYZ Mortgage Company to inquire about loan options. His name is on the National Do Not Call Registry. XYZa.) Can call Bob for up to 3 months from the meeting date b.) can call Bob for up to 18 months from the meeting date. - a. can Call Bob for up to 3 months from the meeting date. Broker Danny is currently working on four loan applications. For which transactions must Danny follow the regulations of the Truth in Lending Act? a.) Helen's application to purchase a duplex where she will live in one unit and rent the other b.) Bauer and Associates application to purchase a condominium for the use of the partnerships contractors. - Helen's application to purchase a duplex where she will live in one unit and rent the other. FHA mortgage insurance premiums must be paid for a minimum of 11 years for loans with starting LTV of 90% or less True or False - True When a seller owns a property that is to be resold during the first 90 days, a second appraisal is required for a conventional loan if the increase in price would be A. 5% B. 12.5 % - B. 12.5% Regulation Z implements a.) TILA b.) RESPA - A. TILA (Truth in Lending act)Which property transaction is governed by RESPA? a.)Property Improvement loans b.) Buyer assumes an existing first-lien loan - a.) Property improvement loans A loan generally cannot be considered a qualified mortgage (QM) if the points and fees paid by the consumer exceed_____ percent(%) of the total loan amount a.)2 b.)3 - b.)3 Which of these actions would indicate that a loan office is not committed to FACT act compliance? a.Erasing electronic copies b. putting files in an unlocked drawer at the end of each work day - b. Putting files in an unlocked drawer at the end of each work day. One purpose of the Truth in lending act is to - enable borrowers to compare credit cost and shop for the best credit terms A qualified mortgage was first defined by which federal act? - Dodd-Frank Wall Street Reform and Consumer protection Act The Red Flags Rule is part of the - Fair and Accurate Credit Transaction Act