MLO Practice 120 Questions and Answers | Latest Version | 2024/2025 | Already Passed

MLO Practice 120 Questions and Answers | Latest Version | 2024/2025 | Already Passed At the end of the term for a balloon mortgage, which type of payment is made? Lump sum Who pays for homeowners insurance? The borrower Which party other than the buyer and seller must agree to a loan assumption? Lender A seller has prepaid July HOA fees of $60. If closing is on July 21 and the seller owns the property on closing day, how much will the buyer owe for the HOA fees at closing? Use a statutory year proration method. $18 Which one of the following questions are creditors prohibited from asking? “What’s your religious affiliation?” What is a yield spread premium? A commission a lender paid to a mortgage broker in exchange for a higher interest rate Michael works for a local lending company. He looks at a consumer's finances then assesses how much risk the loan might be to his employer. What's Michael's role? An underwriter Which one of the following statements about table or "wet" funding is true? Borrowers generally prefer it because they get their funds sooner. In a typical transaction, which of these title defects is unlikely to cause a problem for the buyer? The seller’s existing mortgage Which of the following net worth examples may a lender prefer to see for a borrower applying for a mortgage loan? Assets exceed liabilities. MLO Lindy spoke with an appraiser about 321 Treetop Lane, to which the appraiser was due to go that day. The appraiser was unfamiliar with the area and asked what the property was near. Which of the following is an ethical response? “Treetop is near 5th and Main, close to the stadium.” Revised LEs may be provided to borrowers when there is a valid ______. Changed circumstance Which of the following statements properly defines a qualified mortgage? One that meets stringent CFPB guidelines The NMLS UI does all of the following EXCEPT for which one? Provide the phone number of the loan originator. How many identity theft red-flag sources do the identity theft rules identify? Five Mac is a new loan originator. He's responding to a consumer's inquiry. In a rush, he puts his boss's UI in the email instead of his own. What has Mac done wrong? Used his supervisor's NMLS UI. Related to MLO licensing, which of the following statements is true? Not every individual loan originator employee must be licensed. One important task performed by the Consumer Financial Protection Bureau includes _____. Supervising financial institutions A borrower is applying for an FHA loan. What's the least amount the borrower should plan on paying as a down payment? 3.5% The federal Fair Housing Act prohibits discrimination in which of the following real estate transaction types? Residential property financing Credit scoring measures the likelihood that a borrower will ______ a loan. Default on Mortgage lenders have used maps to draw boundaries around certain geographical regions deemed a higher default risk and refused to lend to businesses and residents in those areas. What is this practice called?