NATIONAL AND UST MORTGAGE PRACTICE EXAM 4 QUESTIONS AND CORRECT ANSWERS

MLO PRACTICE TEST 5 QUESTIONS
A2 A2 A2 A2 A2


AND CORRECT ANSWERS
A2 A2



TheA2Dodd-
FrankA2ActA2directedA2theA2_____A2toA2integrateA2theA2mortgageA2loanA2disclosuresA2form
allyA2underA2TILAA2andA2RESPA.

ConsumerA2FinancialA2ProtectionA2Bureau
FederalA2DepositA2InsuranceA2Corporation
NationwideA2MultistateA2LicensingA2SystemA2&A2Registry
NationalA2CreditA2UnionA2AdministrationA2-A2Ans--
ConsumerA2FinancialA2ProtectionA2Bureau

WhatA2federalA2legislationA2prohibitsA2theA2freeA2exchangeA2ofA2nonpublicA2informationA2b
etweenA2consumers'A2creditors?

EqualA2CreditA2OpportunityA2Act
FairA2CreditA2ReportingA2Act
TruthA2inA2LendingA2Act
Gramm-Leach-BlileyA2ActA2-A2Ans--Gramm-Leach-BlileyA2Act

AllA2ofA2theA2followingA2personalA2informationA2mustA2beA2includedA2asA2partA2ofA2anA2ML
OA2licenseA2applicationA2EXCEPT

aA2copyA2ofA2anyA2otherA2MLOA2licenseA2issuedA2byA2otherA2states.
creditA2reportA2authorization.
authorizationA2toA2obtainA2criminalA2findingsA2fromA2anyA2governmentA2jurisdiction.
fingerprintsA2forA2submissionA2toA2aA2criminalA2backgroundA2check.A2-A2Ans--
aA2copyA2ofA2anyA2otherA2MLOA2licenseA2issuedA2byA2otherA2states.

WithA2aA2fixed-
rateA2mortgageA2loan,A2aA2changeA2inA2whatA2itemA2mayA2increaseA2orA2decreaseA2theA2m
onthlyA2paymentA2amount?

delinquentA2payment
interestA2rate
mortgageA2insuranceA2premium
propertyA2valueA2-A2Ans--mortgageA2insuranceA2premium

RecurringA2costs,A2suchA2asA2PMIA2andA2propertyA2taxes,A2areA2includedA2inA2theA2monthl
yA2paymentA2amount.A2ChangesA2inA2propertyA2taxesA2orA2aA2homeowner'sA2insuranceA2p
remiumA2mayA2raiseA2orA2lowerA2theA2monthlyA2paymentA2amountA2ofA2aA2fixed-
rateA2loan.

, TheA2interestA2rateA2statedA2onA2theA2financingA2instrumentA2isA2the

discountA2percentage.
noteA2rate.
originationA2percentage.
annualA2percentageA2rate.A2-A2Ans--noteA2rate.

TheA2financingA2instrument,A2usuallyA2aA2promissoryA2note,A2showsA2theA2interestA2rateA2f
orA2theA2loan.A2ThisA2isA2theA2noteA2rate,A2whichA2isA2notA2theA2sameA2asA2theA2APR.

______A2letA2aA2borrowerA2makeA2aA2tradeoffA2betweenA2payingA2moreA2upfrontA2costsA2a
ndA2receivingA2aA2lowerA2interestA2whichA2resultsA2inA2aA2lowerA2monthlyA2paymentA2andA2
payingA2lessA2overA2time.

YieldA2spreadA2premium
Lock-inA2agreement
DiscountA2points
LenderA2creditsA2-A2Ans--DiscountA2points

WhichA2ofA2theA2followingA2changedA2circumstancesA2wouldA2triggerA2aA2newA23-
dayA2waitingA2periodA2fromA2receiptA2ofA2aA2validA2re-
disclosedA2ClosingA2DisclosureA2untilA2closing?

SettlementA2serviceA2chargesA2areA2significantlyA2lessA2thanA2providedA2onA2theA2initialA2
ClosingA2Disclosure.
AA2borrowerA2choosesA2toA2takeA2additionalA2cashA2out,A2whichA2doesA2notA2resultA2anA2in
A2APRA2increase.
AA2borrowerA2choosesA2toA2takeA2cashA2out,A2whichA2resultsA2inA2anA2APRA2increaseA2ofA2
.25%A2onA2anA2open-endedA2transaction.
AA2borrower'sA2appraisalA2reflectsA2aA2higherA2collateralA2valueA2thanA2initiallyA2expected.
A2-A2Ans--
AA2borrowerA2choosesA2toA2takeA2cashA2out,A2whichA2resultsA2inA2anA2APRA2increaseA2ofA2
.25%A2onA2anA2open-endedA2transaction.

UnderA2theA2FairA2HousingA2Act,A2aA2lenderA2mustA2notA2discriminateA2basedA2onA2familial
A2status.A2WhichA2householdA2doesA2NOTA2qualifyA2asA2aA2protectedA2classA2underA2theA2
familialA2statusA2clauseA2ofA2theA2FairA2HousingA2Act?

pregnantA2woman
retiredA2couple
grandparentsA2raisingA2theirA2pre-teenA2grandchild
familyA2withA2aA2singleA2parentA2andA2childrenA2-A2Ans--retiredA2couple

TheA2lenderA2mustA2determineA2whetherA2orA2notA2theA2propertyA2isA2locatedA2inA2aA2Spec
ialA2FloodA2HazardA2AreaA2byA2usingA2theA2StandardA2FloodA2HazardA2DeterminationA2for