MLO SAFE Training - Quicken Loans questions with
verified answer
"Amount Financed" is a dollar figure comprised of which of the
following?
Origination fee plus prepaid finance charges
Loan amount minus prepaid finance charges
Loan amount plus prepaid finance charges
Origination fee minus prepaid finance charges Ans✓✓✓ Loan amount
minus prepaid finance charges
A bi-weekly mortgage is a strategy some borrowers use to achieve
interest savings. However, there can be drawbacks. Which of the
following is NOT considered a drawback to a bi-weekly mortgage?
Servicers often charge a fee for administering the bi-weekly plan.
A borrower's pay schedule may not coincide with the loan payment
schedule.
There is a greater potential for late payments.
The borrower ends up making an extra mortgage payment per year.
Ans✓✓✓ The borrower ends up making an extra mortgage payment
per year.
A borrower is purchasing a home using a Conventional Conforming
loan. The purchase price is $200,000, and they are putting 20% down.
The seller is contributing $12,000 in Seller's Concessions. How much
will the down payment be in dollar form?
,$52,000
$40,000
$20,000
$28,000 Ans✓✓✓ $40,000
A borrower makes $4,000 monthly income. The mortgage broker
requires $6,000 in monthly income to qualify the borrower on the
desired loan amount. What should the mortgage broker do?
Show the borrower's income at $6,000
Verify assets only
Use the borrower's equity to compensate
Lower the desired loan amount Ans✓✓✓ Lower the desired loan
amount
A borrower tells an MLO, Kelly, that they've found a mortgage loan with
a rate of 5% with no points at a separate lender. Kelly, the mortgage
loan originator has a 5% rate available for 1 point and a 5.25% rate for 0
points at her loan shop. What should the originator tell the borrower?
The 5% rate for no points doesn't exist for any lender or broker.
They have a 5% for 1 point.
The other mortgage loan originator is not being truthful with the
borrower.
They have a 5% at 0 points. Ans✓✓✓ They have a 5% for 1 point.
,A consumer enters your mortgage brokerage and ask for advice on the
stock market. What is the proper action to take?
Advise the consumer they should seek a licensed real estate agent
Let the consumer know they always make money by investing in real
estate
Let the consumer know they can bet against the T-bills
Advise the consumer to seek a licensed stock broker Ans✓✓✓ Advise
the consumer to seek a licensed stock broker
A fixed-rate loan is BEST defined as which of the following?
It has no balloon feature.
Its interest rate does not adjust throughout the term.
It does not allow for early payment subsidies.
It is a 30-year loan. Ans✓✓✓ Its interest rate does not adjust
throughout the term.
A loan where the borrower's equity is depleted as the principal balance
held by the lender grows through accrued interest and fees is best
defined as which of the following?
A fixed-rate mortgage
A forward mortgage
An adjustable-rate mortgage
A reverse mortgage Ans✓✓✓ A reverse mortgage
, A MLO can do each of the following to contest a temporary cease and
desist order EXCEPT which action?
Request a judicial review of the order within 10 days after a hearing
before the Director
Request a judicial review of the order prior to a hearing before the
Director
Request a judicial review of the order after a hearing before the
Director
Request a judicial review of the order with the U.S. district court after a
hearing before the Director Ans✓✓✓ Request a judicial review of the
order prior to a hearing before the Director
A mortgage lender/broker requires that the borrower sign a document
at closing that states the mortgage lender/broker's policies and
regulations. What does the law allow the mortgage lender/broker to do
if the borrower forgets to sign the document?
Mark an X on the line where the signature should have been
Call the borrower and ask that they sign the document after closing
Sign the document for the borrower
Have a notary sign the document Ans✓✓✓ Call the borrower and ask
that they sign the document after closing
A mortgage loan originator advertises: "Loan programs available for all
credit types." Following the advertisement, the originator takes an
application for a consumer that has a 427 credit score and a bankruptcy
3 years ago. The originator is unable to find a loan that the lender will
verified answer
"Amount Financed" is a dollar figure comprised of which of the
following?
Origination fee plus prepaid finance charges
Loan amount minus prepaid finance charges
Loan amount plus prepaid finance charges
Origination fee minus prepaid finance charges Ans✓✓✓ Loan amount
minus prepaid finance charges
A bi-weekly mortgage is a strategy some borrowers use to achieve
interest savings. However, there can be drawbacks. Which of the
following is NOT considered a drawback to a bi-weekly mortgage?
Servicers often charge a fee for administering the bi-weekly plan.
A borrower's pay schedule may not coincide with the loan payment
schedule.
There is a greater potential for late payments.
The borrower ends up making an extra mortgage payment per year.
Ans✓✓✓ The borrower ends up making an extra mortgage payment
per year.
A borrower is purchasing a home using a Conventional Conforming
loan. The purchase price is $200,000, and they are putting 20% down.
The seller is contributing $12,000 in Seller's Concessions. How much
will the down payment be in dollar form?
,$52,000
$40,000
$20,000
$28,000 Ans✓✓✓ $40,000
A borrower makes $4,000 monthly income. The mortgage broker
requires $6,000 in monthly income to qualify the borrower on the
desired loan amount. What should the mortgage broker do?
Show the borrower's income at $6,000
Verify assets only
Use the borrower's equity to compensate
Lower the desired loan amount Ans✓✓✓ Lower the desired loan
amount
A borrower tells an MLO, Kelly, that they've found a mortgage loan with
a rate of 5% with no points at a separate lender. Kelly, the mortgage
loan originator has a 5% rate available for 1 point and a 5.25% rate for 0
points at her loan shop. What should the originator tell the borrower?
The 5% rate for no points doesn't exist for any lender or broker.
They have a 5% for 1 point.
The other mortgage loan originator is not being truthful with the
borrower.
They have a 5% at 0 points. Ans✓✓✓ They have a 5% for 1 point.
,A consumer enters your mortgage brokerage and ask for advice on the
stock market. What is the proper action to take?
Advise the consumer they should seek a licensed real estate agent
Let the consumer know they always make money by investing in real
estate
Let the consumer know they can bet against the T-bills
Advise the consumer to seek a licensed stock broker Ans✓✓✓ Advise
the consumer to seek a licensed stock broker
A fixed-rate loan is BEST defined as which of the following?
It has no balloon feature.
Its interest rate does not adjust throughout the term.
It does not allow for early payment subsidies.
It is a 30-year loan. Ans✓✓✓ Its interest rate does not adjust
throughout the term.
A loan where the borrower's equity is depleted as the principal balance
held by the lender grows through accrued interest and fees is best
defined as which of the following?
A fixed-rate mortgage
A forward mortgage
An adjustable-rate mortgage
A reverse mortgage Ans✓✓✓ A reverse mortgage
, A MLO can do each of the following to contest a temporary cease and
desist order EXCEPT which action?
Request a judicial review of the order within 10 days after a hearing
before the Director
Request a judicial review of the order prior to a hearing before the
Director
Request a judicial review of the order after a hearing before the
Director
Request a judicial review of the order with the U.S. district court after a
hearing before the Director Ans✓✓✓ Request a judicial review of the
order prior to a hearing before the Director
A mortgage lender/broker requires that the borrower sign a document
at closing that states the mortgage lender/broker's policies and
regulations. What does the law allow the mortgage lender/broker to do
if the borrower forgets to sign the document?
Mark an X on the line where the signature should have been
Call the borrower and ask that they sign the document after closing
Sign the document for the borrower
Have a notary sign the document Ans✓✓✓ Call the borrower and ask
that they sign the document after closing
A mortgage loan originator advertises: "Loan programs available for all
credit types." Following the advertisement, the originator takes an
application for a consumer that has a 427 credit score and a bankruptcy
3 years ago. The originator is unable to find a loan that the lender will
