MLO Practice Questions

A.  

Take the application but tell the borrower that they will need a cosigner

B.  

Take the application because positive factors may offset the short income history

C.  

Tell the borrower they need a steady income and not one that fluctuates

D.  

Tell the borrower to come back in 6 months when they will have 24 months of commission pay

A.  

A licensed and registered real estate broker performing real estate brokerage activities

B.  

An individual who performs administrative or clerical tasks on behalf of a mortgage loan originator

C.  

An individual who offers or negotiates terms of a residential mortgage loan for compensation or gain

D.  

An individual who performs processing and underwriting duties at the direction of and subject to the supervision of a licensed individual

A.  

Loan Estimate only

B.  

Closing Disclosure only

C.  

Uniform Residential Loan Application

D.  

Both the Loan Estimate and Closing Disclosure

A.  

4 business days

B.  

5 business days

C.  

7 business days

D.  

10 business days

A.  

is a mortgage modification.

B.  

is a right to cross or otherwise use someone else's land for a specified purpose.

C.  

allows a loan applicant to close on a loan even if all the stipulations have not been met.

D.  

allows a borrower to make less than the required payments without going through a full mortgage modification.

A.  

15 calendar days

B.  

20 calendar days

C.  

30 calendar days

D.  

60 calendar days

A.  

fixed margin.

B.  

fixed interest rate.

C.  

mandatory 30-year term.

D.  

minimum balloon payment.

A.  

Index and margin only

B.  

Index and interest rate only

C.  

Margin and interest rate only

D.  

Margin, Index and interest rate

A.  

Information on the permanent residency or immigration status of an applicant

B.  

Information on an applicant's former spouse who pays no alimony or child support to the applicant

C.  

Inquiries about an applicant's child support income without informing an applicant of the non-disclosure option

D.  

Inquiries about an applicant's intentions concerning the bearing and rearing of children

A.  

Mortgage lenders control the value of the index.

B.  

The index rate is fixed for the life of the loan.

C.  

Index rates vary as the general level of interest rates change.

D.  

The Federal Reserve adjusts the discount rate index.