SAFE MLO Exam Questions with Verified Answers Latest Update 2025 Already Passed
DTI - Answers Debt to Income
Reverse Mortgage ( Open End Loan) - Answers Requires 4 Disclosures
(1) Intial Tila Disclousre Containing APR( Annual Percent Rate)
(2) Good Faith Estimated of Closing Cost
(3) HUD-1 Settlement Statement)
(4 Final TILA Disclosure
closed-end loan ( including Construction loan and loan for vacant lots - Answers Are Required to use 2
Disclosure
(1) A Loan estimated Form That contains the initial APR disclosure
(2) Closing Disclousure Form That contain Final A.P.R
Equianty Line of Credit, MFG Housing loan ( that not secure by Real Estate, Some Home buyer Assistant
loan - Answers Require a TILA Disclosure, But not A Good Faith Estimate or Loan Estimate and not a
HUD-1 Settlement Statment , Or Closing Disclosure
RESPA (Real Estate Settlement Procedures Act) (ReXpa) - Answers Regulation X Passed by congress in
1974
* Provides consumer protection For loans on Residential Properties ( 1-4)
Respa - Answers Real Estate Settlement Procedures Act
TILA - Reg Z - Answers Truth in Lending Act
RESPA ( reXpa - Answers * Eliminating kickbacks and referral fees which add unnecessary costs to
settlement services
* a law requiring full disclosure of closing costs to buyer and seller.
*Enforced By Consumer Financial Protection Bureau (CFPB)
* applies ONLY to financed Transaction ( Refinances, Homer improvement loans Assumption Reversed
mortgages and Equity line of Credit
( no impact on cash transaction )
, Four Disclosure that must be giving to Applicant within 3 days of receiving a signed application - Answers
*Special information Pamphlet that explains common Mortgage Terms and closing cost ( only for
purchase loans )
* Good Faith Estimated of anticipated closing cost ( reverse mortgage) or loan estimate
* Mortgage Serving Disclosure statement indicating whether the lender intends to service the loan or
transfer the serving right to anther lender
* List of 10 HUD approved housing counseling agencies closest to the applicant current address
Hud -1 Settlement Disclosures - Answers Forms shows all credit and debit to the buy and y disbursement
to third parties
* Not required if the borrow has no closing cost
* borrower has the right to review 1 business day before closing
* initial closing disclosure must be received at least 3 business days before closing
Final Hud- 1 Settlement Statement or final closing disclosure - Answers The buyer Signs the appropriated
document at the time of closing
Initial Escrow Statement - Answers Borrower receive an initial Escrow statement at the closing or within
45 days after closing that estimate the first year escrow payment for property taxes and home owners
insurance
Annual Escrow analysis Statement - Answers Lenders are required to conduct an annual analyst of all
escrow acct , inform the borrower of the finding and reund any excess of $ 50 or Mor
Good Faith Estimate (GFE) - Answers GFE an Loan estimate both have expiration dates for an interest
rate lock
A Charge for a credit report is the only fee that can be collected prior to the loan estimate and
borrowers notification that he wishes to proceed with the loan .
any estimate must clearly state the charge can change
DTI - Answers Debt to Income
Reverse Mortgage ( Open End Loan) - Answers Requires 4 Disclosures
(1) Intial Tila Disclousre Containing APR( Annual Percent Rate)
(2) Good Faith Estimated of Closing Cost
(3) HUD-1 Settlement Statement)
(4 Final TILA Disclosure
closed-end loan ( including Construction loan and loan for vacant lots - Answers Are Required to use 2
Disclosure
(1) A Loan estimated Form That contains the initial APR disclosure
(2) Closing Disclousure Form That contain Final A.P.R
Equianty Line of Credit, MFG Housing loan ( that not secure by Real Estate, Some Home buyer Assistant
loan - Answers Require a TILA Disclosure, But not A Good Faith Estimate or Loan Estimate and not a
HUD-1 Settlement Statment , Or Closing Disclosure
RESPA (Real Estate Settlement Procedures Act) (ReXpa) - Answers Regulation X Passed by congress in
1974
* Provides consumer protection For loans on Residential Properties ( 1-4)
Respa - Answers Real Estate Settlement Procedures Act
TILA - Reg Z - Answers Truth in Lending Act
RESPA ( reXpa - Answers * Eliminating kickbacks and referral fees which add unnecessary costs to
settlement services
* a law requiring full disclosure of closing costs to buyer and seller.
*Enforced By Consumer Financial Protection Bureau (CFPB)
* applies ONLY to financed Transaction ( Refinances, Homer improvement loans Assumption Reversed
mortgages and Equity line of Credit
( no impact on cash transaction )
, Four Disclosure that must be giving to Applicant within 3 days of receiving a signed application - Answers
*Special information Pamphlet that explains common Mortgage Terms and closing cost ( only for
purchase loans )
* Good Faith Estimated of anticipated closing cost ( reverse mortgage) or loan estimate
* Mortgage Serving Disclosure statement indicating whether the lender intends to service the loan or
transfer the serving right to anther lender
* List of 10 HUD approved housing counseling agencies closest to the applicant current address
Hud -1 Settlement Disclosures - Answers Forms shows all credit and debit to the buy and y disbursement
to third parties
* Not required if the borrow has no closing cost
* borrower has the right to review 1 business day before closing
* initial closing disclosure must be received at least 3 business days before closing
Final Hud- 1 Settlement Statement or final closing disclosure - Answers The buyer Signs the appropriated
document at the time of closing
Initial Escrow Statement - Answers Borrower receive an initial Escrow statement at the closing or within
45 days after closing that estimate the first year escrow payment for property taxes and home owners
insurance
Annual Escrow analysis Statement - Answers Lenders are required to conduct an annual analyst of all
escrow acct , inform the borrower of the finding and reund any excess of $ 50 or Mor
Good Faith Estimate (GFE) - Answers GFE an Loan estimate both have expiration dates for an interest
rate lock
A Charge for a credit report is the only fee that can be collected prior to the loan estimate and
borrowers notification that he wishes to proceed with the loan .
any estimate must clearly state the charge can change
