MLO PRACTICE EXAM 6 QUESTIONS
WITH CORRECT ANSWERS
The cfederal claw cGramm-Leach-Bliley cAct cprovides cwhich cright cto cconsumers?
a) cright cto ccancel ca cmortgage ctransaction
b) cright cto copt-out cof cinformation csharing
c) cright cto csee ca ccopy cof ctheir ccredit creport cannually
d) cright cto cnot cbe cdiscriminated cagainst c- cCORRECT cANS✔✔b) cright cto copt-out cof
cinformation csharing
The clicensed cMLO cis cresponsible cfor:
a) chandle cmentoring cof cnew chires
b) csolicit, cprequalify cand cquote cloan cprogram crates cto cborrowers
c) ctake cloan capplications cand cunderwrite cloans
d) cpre-qualify cpotential cborrowers cand cprepare cthe cclosing
disclosure c- cCORRECT cANS✔✔b) csolicit, cprequalify cand cquote cloan cprogram crates
cto cborrowers
Which cfederal claw crequires ca cborrower's cdemographic cinformation?
a) cRegulation cB
b) cRegulation cC
c) cTILA
d) cSAFE cAct c- cCORRECT cANS✔✔b) cRegulation cC
Which cof cthe cfollowing cis cNOT cexempt cfrom cstate cmortgage clicensing
crequirements?
a) csavings cbank
b) ctrust ccompany
c) cmortgage cbroker
d) cnonprofit cto cpromote chomeownership c- cCORRECT cANS✔✔c) cmortgage cbroker
A ctitle creport cshows call cthe cfollowing cexcept:
,a) cThe cchain cof ctitle
b) cThe cexact clocation cof cthe cproperty
c) cAny crestrictive ccovenants cor ceasements
d) cExisting ctitle cinsurance cpolicies c- cCORRECT cANS✔✔d) cExisting ctitle cinsurance
cpolicies
Which centity's cmain cbusiness cis cto cadvertise, coriginate, cprocess, cunderwrite cand
cfund cmortgage cloans?
a) cmortgage cbroker
b) cmortgage cbanker
c) cwholesale clender
d) cFannie cMae c- cCORRECT cANS✔✔b) cmortgage cbanker
What crule cprohibits cthe cuse cof cforged, ccounterfeit, clost, cor cstolen cdocuments cto
cobtain ccustomer cinformation cfrom ca cfinancial cinstitution?
a) cThe cPretexting cRule
b) cThe cDisposal cRule
c) cThe cFinancial cPrivacy cRule
d) cThe cRed cFlags cRule c- cCORRECT cANS✔✔a) cThe cPretexting cRule
Which cof cthe cfollowing cis cNOT ca crequirement cfor ca clicensee cto chave cwhen cthey
crenew ctheir cmortgage cloan coriginator clicense?
a) cdemonstrate che cmeets clicensing cstandards
b) csubmit ca crenewal capplication
c) cdocument che chas cclosed cat cleast cone cmortgage cloan cthat cyear
d) csatisfy cannual ccontinuing ceducation crequirements c- cCORRECT cANS✔✔c)
cdocument che chas cclosed cat cleast cone cmortgage cloan cthat cyear
The cSAFE cAct cfederal claw crequires ca cnew cmortgage cloan coriginator capplicant
ccomplete chow cmany chours cof cprelicensing ceducation.
a) c20 chours
b) c24 chours
c) c21 chours
d) c8 chours c- cCORRECT cANS✔✔a) c20 chours
The cMLO cmust ctake csteps cto censure cthe cborrower cis cwho cthey csay cthey care.
cWhat cfederal claw crequires cMLO cto ccomply cwith cidentity ctheft cdeterrence ccompany
cprocedures?
a) cTruth-in-Lending cAct
b) cFair cHousing cAct
c) cFalse cIdentification cCrime cControl cAct
, d) cFACT cAct c- cCORRECT cANS✔✔d) cFACT cAct
An cMLO cthat cfails cthe cNational ctest cwith cstate ccomponent cmust cwait chow clong
cbefore cthey care cable cto ctake cthe ctest cagain.
a) c10 cbusiness cdays
b) c15 cbusiness cdays
c) c30 ccalendar cdays
d) c45 ccalendar cdays c- cCORRECT cANS✔✔c) c30 ccalendar cdays
Who cis cresponsible cfor cthe ccompletion cof cthe cURLA?
a) cthe cprocessor
b) cthe cmortgage cloan coriginator
c) cthe cborrower
d) cthe clender c- cCORRECT cANS✔✔b) cthe cmortgage cloan coriginator
If cthere cis ca cchange cof ccircumstance cdue cto cthe cinterest crate cbeing clocked cafter
cinitial cLoan cEstimate cprovided, cthe clender cis crequired cto...
a) cprovide ca cclosing cdisclosure cwithin c3 cbusiness cdays cof cthe cchange
b) cprovide ca cloan cestimate cwithin c7 cdays cof cthe cchange
c) cprovide ca cloan cestimate cwithin c3 cbusiness cdays cof cthe cchange
d) cprovide ca cclosing cdisclosure c24 chours cbefore cthe clock cexpires c- cCORRECT
cANS✔✔c) cprovide ca cloan cestimate cwithin c3 cbusiness cdays cof cthe cchange
According cto cthe cSecure cand cFair cEnforcement cfor cMortgage cLicensing cAct c(SAFE
cAct), cwhat cis cconsidered ca ctraditional cmortgage?
a) cFreddie cMac c40 cyear cHome cPossible cprogram
b) cFHA c5 cyear cHybrid cARM
c) c30 cyear cfixed crate cmortgage
d) cFannie cMae c1 cyear cARM c- cCORRECT cANS✔✔c) c30 cyear cfixed crate cmortgage
What ctype cof cmortgage cloan ctransaction cwould crequire ca cRescission cPeriod?
a) cpurchase ctransaction chome cequity cline cof ccredit
b) ccash cout csecond chome crefinance
c) cowner coccupied crefinance ctransaction
d) cpurchase ctransaction c- cCORRECT cANS✔✔c) cowner coccupied crefinance
ctransaction
Which cof cthe cfollowing cdoes cnot cmake ca cloan cNon-QM?
a) cloan cwith cexcessive cfees
b) cloan cwith cinterest conly cor cadjustable crate cfeature
WITH CORRECT ANSWERS
The cfederal claw cGramm-Leach-Bliley cAct cprovides cwhich cright cto cconsumers?
a) cright cto ccancel ca cmortgage ctransaction
b) cright cto copt-out cof cinformation csharing
c) cright cto csee ca ccopy cof ctheir ccredit creport cannually
d) cright cto cnot cbe cdiscriminated cagainst c- cCORRECT cANS✔✔b) cright cto copt-out cof
cinformation csharing
The clicensed cMLO cis cresponsible cfor:
a) chandle cmentoring cof cnew chires
b) csolicit, cprequalify cand cquote cloan cprogram crates cto cborrowers
c) ctake cloan capplications cand cunderwrite cloans
d) cpre-qualify cpotential cborrowers cand cprepare cthe cclosing
disclosure c- cCORRECT cANS✔✔b) csolicit, cprequalify cand cquote cloan cprogram crates
cto cborrowers
Which cfederal claw crequires ca cborrower's cdemographic cinformation?
a) cRegulation cB
b) cRegulation cC
c) cTILA
d) cSAFE cAct c- cCORRECT cANS✔✔b) cRegulation cC
Which cof cthe cfollowing cis cNOT cexempt cfrom cstate cmortgage clicensing
crequirements?
a) csavings cbank
b) ctrust ccompany
c) cmortgage cbroker
d) cnonprofit cto cpromote chomeownership c- cCORRECT cANS✔✔c) cmortgage cbroker
A ctitle creport cshows call cthe cfollowing cexcept:
,a) cThe cchain cof ctitle
b) cThe cexact clocation cof cthe cproperty
c) cAny crestrictive ccovenants cor ceasements
d) cExisting ctitle cinsurance cpolicies c- cCORRECT cANS✔✔d) cExisting ctitle cinsurance
cpolicies
Which centity's cmain cbusiness cis cto cadvertise, coriginate, cprocess, cunderwrite cand
cfund cmortgage cloans?
a) cmortgage cbroker
b) cmortgage cbanker
c) cwholesale clender
d) cFannie cMae c- cCORRECT cANS✔✔b) cmortgage cbanker
What crule cprohibits cthe cuse cof cforged, ccounterfeit, clost, cor cstolen cdocuments cto
cobtain ccustomer cinformation cfrom ca cfinancial cinstitution?
a) cThe cPretexting cRule
b) cThe cDisposal cRule
c) cThe cFinancial cPrivacy cRule
d) cThe cRed cFlags cRule c- cCORRECT cANS✔✔a) cThe cPretexting cRule
Which cof cthe cfollowing cis cNOT ca crequirement cfor ca clicensee cto chave cwhen cthey
crenew ctheir cmortgage cloan coriginator clicense?
a) cdemonstrate che cmeets clicensing cstandards
b) csubmit ca crenewal capplication
c) cdocument che chas cclosed cat cleast cone cmortgage cloan cthat cyear
d) csatisfy cannual ccontinuing ceducation crequirements c- cCORRECT cANS✔✔c)
cdocument che chas cclosed cat cleast cone cmortgage cloan cthat cyear
The cSAFE cAct cfederal claw crequires ca cnew cmortgage cloan coriginator capplicant
ccomplete chow cmany chours cof cprelicensing ceducation.
a) c20 chours
b) c24 chours
c) c21 chours
d) c8 chours c- cCORRECT cANS✔✔a) c20 chours
The cMLO cmust ctake csteps cto censure cthe cborrower cis cwho cthey csay cthey care.
cWhat cfederal claw crequires cMLO cto ccomply cwith cidentity ctheft cdeterrence ccompany
cprocedures?
a) cTruth-in-Lending cAct
b) cFair cHousing cAct
c) cFalse cIdentification cCrime cControl cAct
, d) cFACT cAct c- cCORRECT cANS✔✔d) cFACT cAct
An cMLO cthat cfails cthe cNational ctest cwith cstate ccomponent cmust cwait chow clong
cbefore cthey care cable cto ctake cthe ctest cagain.
a) c10 cbusiness cdays
b) c15 cbusiness cdays
c) c30 ccalendar cdays
d) c45 ccalendar cdays c- cCORRECT cANS✔✔c) c30 ccalendar cdays
Who cis cresponsible cfor cthe ccompletion cof cthe cURLA?
a) cthe cprocessor
b) cthe cmortgage cloan coriginator
c) cthe cborrower
d) cthe clender c- cCORRECT cANS✔✔b) cthe cmortgage cloan coriginator
If cthere cis ca cchange cof ccircumstance cdue cto cthe cinterest crate cbeing clocked cafter
cinitial cLoan cEstimate cprovided, cthe clender cis crequired cto...
a) cprovide ca cclosing cdisclosure cwithin c3 cbusiness cdays cof cthe cchange
b) cprovide ca cloan cestimate cwithin c7 cdays cof cthe cchange
c) cprovide ca cloan cestimate cwithin c3 cbusiness cdays cof cthe cchange
d) cprovide ca cclosing cdisclosure c24 chours cbefore cthe clock cexpires c- cCORRECT
cANS✔✔c) cprovide ca cloan cestimate cwithin c3 cbusiness cdays cof cthe cchange
According cto cthe cSecure cand cFair cEnforcement cfor cMortgage cLicensing cAct c(SAFE
cAct), cwhat cis cconsidered ca ctraditional cmortgage?
a) cFreddie cMac c40 cyear cHome cPossible cprogram
b) cFHA c5 cyear cHybrid cARM
c) c30 cyear cfixed crate cmortgage
d) cFannie cMae c1 cyear cARM c- cCORRECT cANS✔✔c) c30 cyear cfixed crate cmortgage
What ctype cof cmortgage cloan ctransaction cwould crequire ca cRescission cPeriod?
a) cpurchase ctransaction chome cequity cline cof ccredit
b) ccash cout csecond chome crefinance
c) cowner coccupied crefinance ctransaction
d) cpurchase ctransaction c- cCORRECT cANS✔✔c) cowner coccupied crefinance
ctransaction
Which cof cthe cfollowing cdoes cnot cmake ca cloan cNon-QM?
a) cloan cwith cexcessive cfees
b) cloan cwith cinterest conly cor cadjustable crate cfeature
