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MLO Mortgage Loan Origination (SAFE MLO) Exam is now Stable and With Pass Result | Test Your Knowledge for Free

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Mortgage Loan Origination (SAFE MLO) Exam

Last Update 3 days ago
Total Questions : 230

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Question # 11

Which of the following conditions must be met when presenting loan product options to a consumer?

Options:

A.  

The presentation of loan products with prepayment penalties

B.  

The presentation of loan products with the highest interest rates

C.  

The presentation of loan products for which the consumer likely qualifies

D.  

The presentation of loan products from creditors with which the mortgage loan originator does not regularly do business

Discussion 0
Question # 12

Which of the following service providers is a mortgage loan originator permitted to require a borrower to use in obtaining a mortgage?

Options:

A.  

An appraiser

B.  

A title company

C.  

A home inspection company

D.  

A homeowners insurance provider

Discussion 0
Question # 13

Which of the following responses describes the purpose of an appraisal in satisfying requirements for underwriting?

Options:

A.  

To ensure that the home is not an outlier to its comparables

B.  

To ensure that the market value is appropriate for the loan amount

C.  

To allow the seller a final opportunity to cancel the transaction

D.  

To allow the borrower a final opportunity to negotiate terms of the loan

Discussion 0
Question # 14

Which of the following settlement costs is considered a prepaid item?

Options:

A.  

Closing fee

B.  

Recording fee

C.  

Title insurance

D.  

Real estate taxes

Discussion 0
Question # 15

A mortgage loan originator (MLO) submits a refinance application for a primary residence. However, if the MLO later discovers that the property is no longer occupied by the borrower, which of the following actions, if any, should the MLO take?

Options:

A.  

Allow the application to be underwritten before raising any concerns

B.  

Take no action as the property was occupied at the time of application

C.  

Notify the MLO's employer and/or the mortgage lender of the discovery

D.  

Allow the mortgage loan processor and/or underwriter to discover this through their due diligence processes

Discussion 0
Question # 16

A second (subordinate) mortgage loan includes:

Options:

A.  

government home purchase loan.

B.  

conventional home purchase loan.

C.  

home equity conversion mortgage.

D.  

home equity lines of credit (HELOCs;

Discussion 0
Question # 17

A revised Closing Disclosure is not required to be provided before a loan consummation in which of the following circumstances?

Options:

A.  

A change in APR

B.  

A change in loan product

C.  

An addition of an escrow account

D.  

An addition of a prepayment penalty

Discussion 0
Question # 18

The Equal Credit Opportunity Act (ECOA) defines the term "elderly" as anyone:

Options:

A.  

60 years of age or older.

B.  

62 years of age or older.

C.  

65 years of age or older.

D.  

70 years of age or older.

Discussion 0
Question # 19

Which of the following loan types is covered by the Real Estate Settlement Procedures Act (RESPA)?

Options:

A.  

Auto loan

B.  

Student loan

C.  

Residential real estate loan

D.  

Commercial real estate loan

Discussion 0
Question # 20

A borrower is approved for an 80/20 loan. Which of the following describes the lien priority for the 20% loan?

Options:

A.  

First

B.  

Second

C.  

First as it will be combined with the 80% loan

D.  

Second but combined with any other liens

Discussion 0
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