RI MLO EXAM QUESTIONS WITH COMPLETE
SOLUTIONS
The HLPA applies to all of the following loan types, EXCEPT:
Reverse mortgages
According to the Rhode Island Fair Housing Practices Act, this
means to segregate, separate, or otherwise differentiate between
or among individuals based on a protected class.
Discriminate
Regarding an applicant's source of income, it is not prohibited
to:
Confirm the source, amount, and expected duration of that
income
A nonpurchase loan may feature a prepayment penalty:
For no longer than the first five years of the loan term
Rhode Island law limits prepayment penalties, when applicable,
to what amount?
2% of the amount due on the date of pay-off
Which of the following is true regarding owner's title insurance
in Rhode Island?
Owner's title insurance must be requested in writing and signed
In order for the prepayment penalty to be lawful, Hannah's loan
must be:
, A qualified mortgage
Hannah is protected from discrimination on the basis of
disability under which Rhode Island law?
Rhode Island Fair Housing Practices Act
Which of the following best describes the legality of the
prepayment penalty included in Hannah's loan?
It is lawful because it is only in effect for the first year of the
loan term
Which of the following characteristics about Hannah is Thomas
permitted to consider in extending credit?
Income and credit score
This Rhode Island law creates a number of protected classes and
prohibits discriminatory decision-making based on a person
being in one or more of those classes:
The Fair Housing Practices Act
Which of the following is permissible under the Fair Housing
Practices Act?
x Advertising in a manner that implicitly discourages applicants
who are of particular ethnic or racial groups x
x Refusing to make a mortgage loan to an applicant who is an
unmarried woman unless she adds a co-signor x
Lending institutions are required to:
Offer in-house title services before permitting consumers to
shop for their own provider (W)
SOLUTIONS
The HLPA applies to all of the following loan types, EXCEPT:
Reverse mortgages
According to the Rhode Island Fair Housing Practices Act, this
means to segregate, separate, or otherwise differentiate between
or among individuals based on a protected class.
Discriminate
Regarding an applicant's source of income, it is not prohibited
to:
Confirm the source, amount, and expected duration of that
income
A nonpurchase loan may feature a prepayment penalty:
For no longer than the first five years of the loan term
Rhode Island law limits prepayment penalties, when applicable,
to what amount?
2% of the amount due on the date of pay-off
Which of the following is true regarding owner's title insurance
in Rhode Island?
Owner's title insurance must be requested in writing and signed
In order for the prepayment penalty to be lawful, Hannah's loan
must be:
, A qualified mortgage
Hannah is protected from discrimination on the basis of
disability under which Rhode Island law?
Rhode Island Fair Housing Practices Act
Which of the following best describes the legality of the
prepayment penalty included in Hannah's loan?
It is lawful because it is only in effect for the first year of the
loan term
Which of the following characteristics about Hannah is Thomas
permitted to consider in extending credit?
Income and credit score
This Rhode Island law creates a number of protected classes and
prohibits discriminatory decision-making based on a person
being in one or more of those classes:
The Fair Housing Practices Act
Which of the following is permissible under the Fair Housing
Practices Act?
x Advertising in a manner that implicitly discourages applicants
who are of particular ethnic or racial groups x
x Refusing to make a mortgage loan to an applicant who is an
unmarried woman unless she adds a co-signor x
Lending institutions are required to:
Offer in-house title services before permitting consumers to
shop for their own provider (W)
